Biogen announced a weak forecast as it expects low sales from its Alzheimer's drug, Aduhelm
The shares of Biogen Inc (NASDAQ:BIIB) are down 5% to trade at $213.70 at last check, as the company's bleak 2022 forecast weighs. Biogen announced fourth-quarter earnings of $3.39 per share, which is just higher than analysts' anticipated $3.38 per share, as well as a revenue beat. However, the biotech name expects weak sales from its Alzheimer's drug Aduhelm, amid uncertainty over the U.S. government's pending decision to restrict Medicare coverage on Alzheimer's treatments to those not enrolled in clinical trials.
This negative price action had BIIB hitting a fresh five-year low of $212.56 right out of the gate. The stock has lost more than half its value since its early June peak at $468.55, and its 40-day moving average has helped guide the shares lower for the last few months. Over the past six months, the equity has lost 36.6%.
In typical fashion, options traders are chiming in at double what's typically seen after the earnings event. So far, 1,779 calls and 1,260 puts have crossed the tape. The most popular is the February 225 call, where new positions are being opened.
It's also worth noting that short interest has been on the rise, up 17.4% in the most recent reporting period. Analysts have yet to chime in today, but there is plenty of room for downgrades, as 13 of the 29 analysts in coverage carry a "buy" or better rating on BIIB.