Biogen is a multinational biotechnology company well known for proprietary treatments for Multiple Sclerosis (MS) and other chronic conditions. In March 2019, Biogen announced it was abandoning Aduhelm, its potential blockbuster drug for treating Alzheimers disease. Contrary to this decision, a group of Biogen executives began to meet with the FDAs Director of the Office of Neuroscience in an effort to gain FDA approval for Aduhelm, the lawsuit alleges. Six months after announcing it was abandoning Aduhelm as futile and that the drug failed to show any clinical benefit, Biogen announced it was submitting the drug for FDA approval, portraying the same supporting data as demonstrating the drug as safe and effective. Aduhelm was approved through the FDAs Accelerated Approval process for the treatment of Alzheimers on June 7, 2021. Shares of Biogen stock skyrocketed by over $100 per share on June 7, 2021. However, over the next six months, investors learned that Aduhelm would not be the blockbuster drug to conquer Alzheimers or replace Biogens MS drug line-up because the drug was dangerous and ineffective, hospital networks refused to prescribe it, and major insurance companies refused to pay for it, as the lawsuit alleges. Members of the FDA advisory panel resigned in protest over Aduhelms approval and Congress demanded to know how the drug had been approved. By October 2021, Aduhelm was not selling well and in December other global regulators had denied its approval. Following the publication of a draft opinion by the Center for Medicare and Medicaid Services on January 11, 2022, Biogens stock price fell to $225 per share, more than 40% lower than where shares had traded on June 7, 2021 following the FDA approval announcement.
For More information as well as to join this case please contact Atara Twersky, Esq. at atara@twerskylawgroup.com or atwersky@aftlaw.com. Atara is Principal at Twersky Law Group and Of counsel at AF&T law firm where she is director of Investor Services. Atara focuses her practice on assisting her clients with increasing their investment portfolio recoveries and ensuring that their portfolios remain healthy and robust. For more information on shareholder recoveries click here and to listen to Atara’s podcast with notable guests in the Pension fund Industry listen to Pension and Investments Podcast, on all matters related to your investment portfolio and more. For more information on Atara and her legal work connected to shareholder protection click here.
