NEW YORK, July 11, 2024 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP notifies investors of the approaching July 22, 2024 deadline to claim lead plaintiff status in a federal securities class action lawsuit filed on behalf of investors who purchased Biogen, Inc (“Biogen” or the “Company”) (NASDAQ: BIIB) securities during the period beginning February 3, 2022 through February 13, 2024, inclusive (“the Class Period”).
(Click here to learn more about the class action lawsuit)
On November 8, 2023, Biogen revised its fiscal 2023 non-GAAP diluted earnings per share guidance downward, to a range of $14.50 to $15.00 per share, well below its previous fiscal 2023 non-GAAP diluted earnings per share guidance of $15.00 to $16.00 per share, citing approximately $0.75 of dilution from the Reata acquisition. On this news, Biogen’s share price declined by $13.92 per share, closing at $231.69 per share on November 8, 2023.
On January 8, 2024, Christopher A. Viehbacher, CEO of Biogen, discussed the challenges of bringing Leqembi, a drug the company was developing to market for Alzheimer’s disease, and retracted the previous expectation that 10,000 patients would take the drug by the end of March 2024. On this news, Biogen’s stock price fell by $10.77 per share for three consecutive trading days, closing at $247.21 per share on January 11, 2024.
On February 6, 2024, news reports emerged that Eisai, Biogen’s development partner, was facing challenges in bringing Leqembi to market and the drug had only been administered to 2,000 patients in the U.S. On this news, Biogen’s stock price fell by $5.01 per share, closing at $240.54 per share on February 7, 2024.
Then on February 13, 2024, Biogen announced its fourth quarter and fiscal 2023 results, including fourth quarter non-GAAP earnings per share of $2.95, missing consensus estimates by $0.23, and fourth quarter revenue of $2.4 billion, missing consensus estimates by $60 million and representing a year-over-year decrease of 5.5%. Biogen announced that fourth quarter “GAAP and non-GAAP diluted earnings per share were negatively impacted by $0.35 due to previously announced closing costs for ADUHELM,” confirmed that Biogen is “currently treating approximately 2,000 patients with (Leqembi)” and that there are “indications that there are approximately 3,800 patients in the registry as of last week” — significantly less than the 10,000 patient target set by Biogen and Eisai for the end of the following month, according to the complaint. On this news, Biogen’s stock price fell $18.09 per share, closing at $226.65 per share on February 13, 2024.
On February 14, 2024, Biogen announced in an SEC filing that it had received a subpoena from the DOJ “seeking information about (Biogen’s) operations in multiple countries” and that “the Company is also providing the SEC with information about (its) operations in multiple countries.” Following this news, Biogen’s stock price fell $5.91 per share, or 2.61%, to close at $220.74 per share on February 14, 2024.
The complaint alleges that throughout the Class Period, the Company made false and/or misleading statements and/or failed to disclose that: (i) Biogen overstated its efforts to improve its compliance controls; (ii) Biogen accordingly maintained inadequate compliance controls and procedures in connection with its operations abroad; (iii) Biogen and/or its employees engaged in unlawful or improper conduct abroad; (iv) the foregoing placed the Company at increased risk of governmental and/or regulatory scrutiny and enforcement actions, as well as significant legal, financial and reputational harm; (v) Biogen overstated the strength of its AD-related product portfolio, including the Company’s and Eisai’s efforts and success in bringing Leqembi to market and providing access to it; (vi) Biogen also understated the negative impact of the Reata acquisition on its fiscal 2023 non-GAAP diluted earnings per share; and (vii) all of the foregoing would likely have a material adverse effect on Biogen’s results in 2023.
If you purchased or otherwise acquired Biogen securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected] or by completing this CONTACT FORM to discuss your rights or interests with respect to these matters free of charge.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm specializing in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in billions of dollars in awards. For more information about the firm, visit the Kirby McInerney LLP website.
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contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
[email protected]
