Biogen (BIIB, $291.61) shares slump, amidst reports of patient death in Eisai Alzheimer's death
Biogen shares plunged on Monday, following reports that a woman who participated in a trial of the drugmaker's developing Alzheimer's treatment died due to a brain hemorrhage. The company is developing the drug with Eisai Co.
According to Science.org, the case involved a 65-year-old woman who died of a massive brain hemorrhage following a stroke and a type of brain swelling and bleeding in a trial of Eisai. The report mentioned that the bleeding started after the patient received an anti-clotting drug.
Biogen and Eisai have published very limited data from the trial. More results are expected to be presented at a conference this week.
BIIB sees MACD Histogram crosses below signal line
BIIB saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 12, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 48 instances where the indicator turned negative. In of the 48 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for BIIB moved out of overbought territory on May 09, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 19 similar instances where the indicator moved out of overbought territory. In of the 19 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on May 16, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on BIIB as a result. In of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BIIB declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 57 cases where BIIB's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BIIB advanced for three days, in of 293 cases, the price rose further within the following month. The odds of a continued upward trend are .
BIIB may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 128 cases where BIIB Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. BIIB’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BIIB’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 60, placing this stock worse than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.150) is normal, around the industry mean (6.110). P/E Ratio (13.966) is within average values for comparable stocks, (30.240). Projected Growth (PEG Ratio) (4.685) is also within normal values, averaging (3.471). BIIB's Dividend Yield (0.000) is considerably lower than the industry average of (0.027). P/S Ratio (4.320) is also within normal values, averaging (4.009).
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Industry description
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High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of therapies for people living with neurological, autoimmune and hematologic disorders
Industry PharmaceuticalsMajor
BIIB and
Correlation & Price change
A.I.dvisor indicates that over the last year, BIIB has been loosely correlated with LLY. These tickers have moved in lockstep 50% of the time. This A.I.-generated data suggests there is some statistical probability that if BIIB jumps, then LLY could also see price increases.
| Ticker / NAME | Correlation To BIIB | 1D Price Change % | ||
|---|---|---|---|---|
| BIIB | 100% | -0.73% | ||
| LLY - BIIB | 50% Loosely correlated | +1.34% | ||
| AMGN - BIIB | 37% Loosely correlated | +1.77% | ||
| GILD - BIIB | 36% Loosely correlated | +2.20% | ||
| AZN - BIIB | 34% Loosely correlated | -0.34% | ||
| JNJ - BIIB | 32% Poorly correlated | +1.57% | ||
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