Shares of Biogen( NASDAQ: BIIB) were soaring 17.2%since 2: 59 p.m. EST on Wednesday after rising as much as 32.4?rlier in the afternoon. The huge gain came on news that the Patent Trial and Appeal Board (PTAB) ruled in favor of Biogen in a difficulty by Mylan( NASDAQ: MYL) to the biotech’s secret patent for several sclerosis drug Tecfidera.
Tecfidera ranks as Biogen’s top-selling product. The drug produced $4.4 billion in sales in 2019, accounting for almost one-third of Biogen’s total revenue.
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Mylan filed a petition with the PTAB in July 2018 challenging the credibility of a key Biogen patent for Tecfidera. Had the PTAB decided against Biogen, its earnings from Tecfidera would have been at threat.
Biogen is also included in patent lawsuits with 22 other drugmakers looking for to develop generic versions of the drug. Biogen lost in a U.S. District Court lawsuit versus Banner Life Sciences last month and is likewise scheduled to go to trial with Mylan in a U.S. District Court this month.
Financiers will want to closely view what happens with the staying court cases related to Biogen’s Tecfidera patent. It’s certainly motivating for the company, however, that it won its argument with the PTAB.
But the greatest thing to keep your eyes on with any biotech stock is its pipeline progress. Biogen must quickly declare Food and Drug Administration approval of experimental Alzheimer’s disease drug aducanumab. Needs to the business win a thumbs-up to market the drug, today’s gain might appear little in contrast with how much Biogen stock might skyrocket.
Editor’s note: A previous variation of this short article mentioned that Biogen’s claim with Banner Life Sciences was set up to go to court in February. The case really began in January with Banner winning the suit. The Fool regrets the error.
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Keith Speights has no position in any of the stocks discussed. The Motley Fool owns shares of and recommends Biogen.