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Biogen Inc.

Company NameBiogen Inc.
Stock SymbolBIIB
Class PeriodFebruary 03, 2022 to February 13, 2024
Lead Plaintiff Motion DeadlineJuly 22, 2024

On November 8, 2023, Biogen released its third quarter 2023 financial results, including negatively revised non-GAAP diluted EPS guidance for 2023. On this news, Biogen’s stock price fell $13.92, or 5.7%, to close at $231.69 per share on November 8, 2023, thereby injuring investors.

Then, on January 8, 2024, Biogen’s CEO disclosed challenges with the Company’s launch of its Alzheimer’s disease treatment, Leqembi, dissolving prior expectations of having 10,000 patients on the drug by the end of March 2024. On this news, Biogen’s stock price fell $10.77, or 4.2%, over three consecutive trading days to close at $247.21 per share on January 11, 2024.

Then, on January 31, 2024, Biogen announced that it was discontinuing the development and commercialization of its drug, Aduhelm and had “recorded a one-time charge of approximately $60 million related to close out costs for the program in the fourth quarter of 2023.”

Then, on February 6, 2024, news outlets reported challenges with the launch of Leqembi, stating that only 2,000 patients had been administered the drug. On this news, Biogen’s stock price fell $5.01, or 2%, to close at $240.54 per share on February 7, 2024.

Then, on February 13, 2024, Biogen released its fourth quarter and full year 2023 financial results, missing consensus estimates of non-GAAP EPS by $0.23 and revenue by $60 million. The Company also disclosed that there were approximately 2,000 patients on Leqembi, and “about 3,800 patients as of last week on the registry,” signifying a much lower number than the previously-set goal of 10,000 patients. On this news, Biogen’s stock price fell $18.09, or 7.4%, to close at $226.65 per share on February 13, 2024.

Then, on February 14, 2024, Biogen disclosed that it had received a subpoena from the DOJ seeking information about its “business operations in several foreign countries.” On this news, Biogen’s stock price fell $5.91, or 2.6%, to close at $220.74 per share on February 14, 2024, thereby injuring investors further. 

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Biogen had overstated its efforts to enhance its transparency, corporate governance, and compliance controls and procedures, as well as the efficacy of those controls and procedures; (2) accordingly, Biogen maintained inadequate compliance controls and procedures in connection with its business operations in foreign countries; (3) Biogen and/or its employees were engaged in unlawful or otherwise improper conduct in several foreign countries; (4) the foregoing subjected the Company to a heightened risk of governmental and/or regulatory scrutiny and enforcement action, as well as significant legal, financial, and reputational harm; (5) Biogen overstated the strength of its AD-related product portfolio, including the Company’s and Eisai’s efforts and success in launching and providing access to Leqembi; (6) Biogen also downplayed the negative impact that the Reata Acquisition would have on its FY 2023 non-GAAP diluted EPS; (7) all the foregoing were likely to have a significant negative impact on Biogen’s 2023 results; and (8) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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