Research Paper Reports Death in Biogen's Experimental Drug

The stock is coming off its annual highs

Digital Content Manager
Nov 28, 2022 at 9:37 AM
facebook twitter linkedin

Biogen Inc (NASDAQ:BIIB) is under pressure this morning, in the wake of a research paper published on this Sunday. The report indicated a 65-year-old patient receiving the experimental Alzheimer's drug Biogen developed with Eisai died from a brain hemorrhage. The paper cited unpublished case reports, and so far neither Biogen or Eisai have not responded to the report. Nevertheless, BIIB is sinking, last seen down 4.2% to trade at $292.26. 

For most of the year, BIIB has been traveling higher amid upbeat updates on this same experiential drug, and hit an annual high of $307.52 on Friday. The stock is up roughly 27% this year, but today's drop puts BIIB back below its 10-day moving average, which has guided shares upward since their mid-October bull gap. 

It's worth noting that heading into today, BIIB sat firmly in "oversold" territory. This is per the equity's 14-day Relative Strength Index (RSI) of 78, which indicates a short-term breather may have been imminent. 

Despite these recent highs, short-term options traders have been more put-biased than usual. BIIB's Schaeffer's put/call open interest ratio (SOIR) of 0.96 stands in the 71st percentile of its annual range.



Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners