Good thing the acronyms didn't spell out VAGUE and CONTRADICT.
Most confirmatory clinical trials don't add much value since the cat's already out of the bag, but Biogen jumped more than 9% yesterday, a $2.4 billion increase in value. The reason for the jump: The results from DEFINE were so good that people, myself included, wondered whether Biogen really could replicate the data.
I guess the cat really is out of the bag now. Since the results of DEFINE were announced, Biogen is up 60%, while the Dow Jones (INDEX: ^DJI) has been essentially flat.
For good reason, BG-12 looks like it has blockbuster potential. The drug reduced the annualized relapse compared with placebo by 44% or 51%, depending on whether it was dosed twice or three times a day. By comparison, Teva Pharmaceuticals'
And let's not forget that BG-12 is taken orally, while other drugs like Copaxone, Biogen and Elan's
There are no sure things with the Food and Drug Administration, but BG-12 sure looks like it has an excellent chance of gaining approval late next year. You can follow its progress through the regulatory system by adding it to My Watchlist, which will help you keep track of all our Foolish analysis on Biogen.