By Christiana Sciaudone
Investing.com -- Biogen (NASDAQ:BIIB)'s trading about 5% higher after Jefferies (NYSE:JEF) reiterated a buy rating ahead of potential approval of its Alzheimer's candidate drug.
The Food and Drug Administration is scheduled to rule on the aducanumab biologic license application by June 7.
Analyst Michael Yee sees the probability of approval at 50% to 60%, higher than consensus of no more than 30%, StreetInsider reported. Oppenheimer sees equal probabilities of aducanumab receiving approval or facing rejection, Benzinga reported.
The shares are likely to move 21% higher if approved, 11% lower if not, Oppenheimer said, which estimates the risk-adjusted peak sales forecast for aducanumab at about $2.7 billion in 2030, according to Oppenheimer.
Aducanumab apparently slows the progression of Alzheimer's in people with early signs of cognitive impairment. It's been a bumpy ride for the drug, with the FDA saying it appears to be effective, followed by an outside panel of agency advisers saying more data was needed, Bloomberg reported.