Shares of Biogen (BIIB) - Get Report plunged more than 30% on Monday after a Food and Drug Administration advisory panel voted against approving its highly anticipated experimental Alzheimer's drug that was believed to be a shoe-in for an FDA nod.
Biogen stock was down 29.66% at $231.35 shortly after the start of trading on Monday. The stock traded at $328.90 before being halted on Friday ahead of the FDA's Peripheral and Central Nervous System Drugs Advisory Committee announcement.
That committee voted on Friday voted 8 to 1 against recommending approval of Biogen's treatment aducanumab, while two members cast "undecided" votes.
The panel’s conclusion was surprising for investors and Wall Street analysts as it came just days after the FDA issued what was taken as a positive report on aducanumab, spurring a massive 44% rally in Biogen’s shares last Wednesday.
The FDA generally follows the recommendations of its underlying advisory panels, strongly implying that the drug won't receive the FDA’s blessing.
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