Fly Watch: Biogen Predicted To Report Strong Alzheimer's Data This Friday

NEW YORK (TheStreet) -- Biogen (BIIB) is expected to report data for its experimental Alzheimer's treatment, BIIB-037, at the International Conference on Alzheimer's & Parkinson's Diseases on Friday, March 20. The conference "attracts international medical and scientific professionals worldwide" and is "at the forefront of unraveling the mechanisms and improving the treatment of Alzheimer's, Parkinson's and other related neurodegenerative diseases," according to its website.

ANALYST OUTLOOK: Biogen will report strong data for BIIB-037 and the stock should "work higher" after the data is unveiled, RBC Capital analyst Michael Yee wrote in a note to investors earlier today. Alzheimer's patients taking the high dose of Biogen's BIIB-037 drug should exhibit a stabilization of cognition levels, Yee stated. Conversely, the cognition levels of patients taking the placebo should drop slightly, the analyst predicted. The analyst believes that even a one point differential on the cognition scale called MMSE between patients taking BIIB-037 and those taking placebo, along with a stabilization for those taking the drug, would constitute "very strong" results. The patients in the study are relatively healthy and the study had a duration of only one year, he noted. No Alzheimer's drug has ever previously stabilized cognition in a study, according to Yee. The analyst thinks that Biogen's fundamentals and drugs in development are very strong. He kept an Outperform rating on the shares.

WHAT'S NOTABLE: The data for Biogen's Alzheimer's treatment is widely expected to be positive, Bernstein analyst Tim Anderson wrote in a note to investors earlier today. If the data does end up being upbeat, it will bode well for Eli Lilly (LLY) and Roche (RHHBY), which are developing similar Alzheimer's treatments, Anderson stated. Analysts do not give the Alzheimer's treatments being developed by those companies a good chance of generating significant revenue, the analyst stated, noting that Lilly should have Phase 3 results for its drug three years ahead of Biogen. He kept Outperform ratings on Eli Lilly and Roche.

PRICE ACTION: Biogen Idec shares are down 1.4% in afternoon trading, though the stock is up about 4.7% over the last month.

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Fly Watch: Biogen Predicted To Report Strong Alzheimer's Data This Friday