Why Biogen Stock Is Sinking Today
Shares of Biogen (NASDAQ: BIIB) were sinking 9.5% as of 10:48 a.m. ET on Wednesday. The decline came after the Centers for Medicare and Medicaid Services (CMS) on Tuesday released its proposed National Coverage Determination (NCD) for Biogen's Alzheimer's disease drug Aduhelm. The proposed NCD would only cover Aduhelm for Medicare beneficiaries enrolled in clinical trials.
Biogen had hoped that CMS would decide to provide full coverage for Aduhelm with Medicare beneficiaries. In the company's third-quarter conference call, chief financial officer Michael McDonnell said that Biogen expected revenue for the drug to especially pick up with a positive NCD decision this year. The revenue prospects for Aduhelm now appear to be in serious jeopardy. The steep sell-off for the biotech stock reflects this more-negative outlook.
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Source Fool.com