NEW YORK (TheStreet) -- Shares of Biogen (BIIB) are climbing after the drug maker earlier today reported promising results for a study of its experimental medicine for Alzheimer's disease. In a note to investors, Deutsche Bank predicted that the company's Alzheimer's data could yield $15-$29 of share upside.
WHAT'S NEW: At a Deutsche Bank conference today, Biogen reported that its Alzheimer's drug, BIIB-037, had reduced amyloid levels in the brain during a Phase I study, multiple media outlets reported. The drug seeks to combat the advance of Alzheimer's by targeting beta amyloid proteins, which are widely believed to harm the brains of people with the disease. "We're planning very aggressively to start" Phase 3 trials of the drug, Biogen's R&D head Doug Williams said, according to CNBC.
ANALYST REACTION: In a note to investors this morning, Deutsche Bank analyst Robyn Karnauskas wrote that BIIB-037 had improved the cognition of Alzheimer's patients by statistically significant amounts. The firm estimated investors were assigning 25%-50% probability for success of the drug and the firm reiterated that it assigns a fair value estimate of $58 per share at 100% success for the drug. Karnauskas kept a $430 price target and Buy rating on the stock.
PRICE ACTION: In afternoon trading, Biogen jumped $19, or 6% to $327.44.
Reporting by Larry Ramer.