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Biogen announces $5 billion buyback days after shelving Alzheimer's trials

Key Points
  • Biogen had lost more than $18 billion of its value last week after the company and partner Eisai ended two late-stage trials of their experimental Alzheimer's disease treatment, aducanumab.
  • Biogen shares, which lost 32.4 percent of their value since the company's announcement on Thursday to scrap the trials, were up 1.5 percent before the opening bell on Monday.
File photo: Michael LeClair, left, and Kevin Fleurimond, in the manufacturing room of Biogen Idec.
Suzanne Kreiter | The Boston Globe | Getty Images

Biogen said on Monday it would buy back shares worth $5 billion, days after its stock slumped on the drugmaker's announcement to end two Alzheimer's disease trials.

Biogen had lost more than $18 billion of its value last week after the company and partner Eisai ended two late-stage trials of their experimental Alzheimer's disease treatment, aducanumab.

Biogen shares, which lost 32.4 percent of their value since the company's announcement on Thursday to scrap the trials, were up 1.5 percent before the opening bell on Monday.

The share buyback is in addition to the approximately $1.7 billion remaining under the stock repurchase program authorized by its board in August 2018, the company said in a regulatory filing

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Key Points
  • New Jersey resident Jeff Borghoff, a patient in Biogen's failed clinical trial for Alzheimer's, was left heartbroken when he heard the news the experimental treatment was unlikely to work.
  • Biogen joins a long list of companies in the last decade who have failed to find a treatment for Alzheimer's, a progressive and debilitating disease that often affects a person's memory, thinking and behavior.