Biogen (NASDAQ:BIIB) news for Thursday concerning a lost court ruling has BIIB stock taking a beating.
The ruling against Biogen concerns its multiple sclerosis (MS) drug Tecfidera. The battle in court was over the ability for generic drugmaker Mylan (NASDAQ:MYL) to release its own version of the drug. Unfortunately for BIIB stock, a West Virginia court ruled in MYL’s favor.
According to the court’s ruling, Biogen’s patent for Tecfidera is invalid due to “lack of written description.” That opens the way for Mylan, as well as other drug companies, to release their own versions of the MS drug.
That means Biogen will likely see increasing competition from generic rivals. That could cause problems for the company and result in it losing profit. Mylan already has a pending drug application waiting for approval from the U.S. Food and Drug Administration, reports TheStreet.com.
Even without the recent Biogen news, the company was already dealing with issues. For example, Wall Street is expecting revenue for the company to decline in 2020 and 2021. Without any room for growth, BIIB stock was already on a steady decline.
Biogen also suffered due to the novel coronavirus just like any other company. That saw it dip low in March after a rally in February. While the stock started to recover in April, it was already on its way back down partway through the month.
BIIB stock was down 7.6% and MYL stock was up 2.1% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.