Biogen Inc.'s (BIIB) current pipeline of Alzheimer's therapies is currently extremely promising. On October 5 the stock shot up as a result of Morgan Stanley releasing research stating that they believe BIIB's Alzheimer's treatments are differentiated from the competition and valuable. In addition to Alzheimer's development, their therapy for Spinal Muscular Atrophy, Spinraza, is also showing upside. Based on my own analysis I believe that BIIB has a potential competitive advantage based on current data available for the treatments they have on trial for Alzheimer's. This new information coupled with a strong balance sheet and a cheap valuation provides investors with a buying opportunity to enter the biotech market.
The image below is BIIB's current pipeline. Upon analysis of this chart BIIB has two phase three Alzheimer's treatments, a phase two therapy and a phase one therapy. A treatment for the later stages of Alzheimer's is a main focus of BIIB's right now and they are highly invested in creating a portfolio of treatments for this illness. There is not currently a reliable Alzheimer's disease product on the market that cures the disease or significantly slows the progression. BIIB is gaining an advantage as more companies release news their products are ineffective, while BIIB's clinical trial data remains positive, although it will not be released until 2020. Most recently on September 26, 2017 Axovant made a press release that their phase 3 drug Intepirdine was not showing signs of improvement in their patients. Merck's attempt with their drug Verubecestat (which has been halted) and Eli Lilly's Solanezumab had the same lackluster results in February 2017, and November, 2016, respectively.