The U.S. Food and Drug Administration’s support aboriginal past period of Biogen’s Alzheimer’s illness therapy Aduhelm stunned investors—and near them hurrying to rethink their different bets crossed biotech.
In a enactment retired aboriginal Wednesday, Maxim Group expert Jason McCarthy accrued his people prices connected 3 Alzheimer’s illness stocks, arguing that the support of Aduhelm is “driving a re-calibration of Alzheimer’s players.”
McCarthy accrued his people terms on Annovis Bio (ticker: ANVS), which closed Tuesday astatine $102.98, to $150. His erstwhile people connected the banal was $45. He accrued his people on INmune Bio (INMB), which closed Tuesday astatine $17.85, to $42, up from his erstwhile people of $32.
And helium accrued his people connected Cassava Sciences (SAVA), which closed Tuesday astatine $92.80, to $190, from his erstwhile people terms of $80.
All 3 of the companies are processing Alzheimer’s treatments, and each person climbed sharply successful caller weeks. Annovis shares are up 128% since the opening of June, portion INmune shares are up 32%, and Cassava shares are up 72%. The iShares Biotechnology exchange-traded money (IBB), which tracks the biotech industry, is up conscionable 7.2% implicit the aforesaid period.
“Aducanumab’s approval, if for thing else, has ushered successful caller hope, caller enthusiasm, caller investment, and a caller way guardant successful AD cause development,” McCarthy wrote successful his Wednesday note. “In our opinion, this is what is driving valuations being re-calibrated crossed the space.”
The Aduhelm determination shocked investors and researchers alike, given the wide skepticism implicit the information supporting the drug’s efficacy. Enthusiasm for Alzheimer’s stocks has grown rapidly successful the consequent weeks, arsenic investors person placed bets nether the presumption that the FDA volition usage the aforesaid attack connected different Alzheimer’s therapies arsenic it did connected Biogen’s (BIIB).
Shares of Eli Lilly (LLY) person climbed sharply since Aduhelm’s approval. The institution present says that it plans to taxable its ain Alzheimer’s illness therapy for support this year, alternatively than waiting for the completion of a 2nd Phase 3 trial, as it had antecedently planned. Lilly shares are present up 17% since Aduhelm was approved connected June 7, astir arsenic overmuch arsenic Biogen itself, which is up 21%.
In his note, McCarthy said that Cassava, Annovis, and INmune are undervalued, adjacent though their stock prices person changeable up this year. New information is expected from each 3 of the companies.
INmune shares were up 8.2% successful caller trading, portion Annovis shares were up 0.6% and Cassava shares were up 3.4%.
Write to Josh Nathan-Kazis astatine email@example.com