Biogen Inc. (BIIB) Misled the Public and Investors Regarding the Viability of its Alzheimer’s Drug Aduhelm
A shareholder filed a class action on behalf of purchasers of Biogen Inc. (NASDAQ: BIIB) between June 7, 2021 and January 11, 2022, for violations of the Securities Exchange Act of 1934. Biogen develops and manufactures therapies to treat neurological and neurodegenerative diseases.
According to the complaint, in March 2019, Biogen announced it was abandoning Aduhelm, its blockbuster drug to treat Alzheimer’s disease. Meanwhile, a group of Biogen executives began meeting with the FDA’s Director of the Office of Neuroscience in an effort to gain FDA approval for Aduhelm. These meetings are now the subject of investigations by the FDA, Congress, the Federal Trade Commission, and U.S. Securities and Exchange Commission.
Aduhelm was approved through the FDA’s Accelerated Approval process for the treatment of Alzheimer’s on June 7, 2021. On its approval, shares of Biogen skyrocketed by over $100.00 per share.
However, over time it was discovered that Aduhelm was dangerous and ineffective, hospital networks refused to prescribe it, and major insurance companies refused to pay for it. Indeed, members of the FDA advisory panel resigned in protest over Aduhelm’s approval and Congress demanded to know how the drug had been approved.
On January 11, 2021, the Center for Medicare and Medicaid Services released a draft opinion, stating it would only pay for Aduhelm for those patients in a hospital sponsored clinical trial. On this news, Biogen’s stock fell to $225.00, more than 40% lower than where shares traded on June 7, 2021, when the FDA approved Aduhelm. Biogen’s market capitalization declined by almost $25 million between June 7, 2021 and January 12, 2022, causing investors significant losses.
Next Steps: If you purchased shares of Biogen, Inc. (BIIB) between June 7, 2021 and January 11, 2022, you have until April 8, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.