Dark pool activity was detected in BIIB stock on February 7, 2020.
We are unable to determine if the dark pool trade was a buy or sell but it probably was a buy order.
Bullish Options Flow In BIIB Stock
Bullish options flow was detected in BIIB stock on February 7, 2020. The bullish options flow supports the idea that the dark pool trade was probably buying.
We also detected unusual bullish options activity in BIIB stock on February 7, 2020.
There is a news catalyst that explains the bullish activity in Biogen stock and suggests the dark pool trade was a buy order.
On February 5, 2020, Biogen (BIIB) stock moved higher after the United States Patent and Trademark Office (USPTO) issued a final written decision in Mylan Pharmaceuticals’ (MYL) challenge of claims that 1-20 of U.S. Patent No. 8,399,514 owned by Biogen are unpatentable.
Mylan “has not shown, by a preponderance of the evidence,” that the challenged claims of the ‘514 patent are unpatentable, a judge wrote in the ruling posted to the site of the USPTO. The subject matter claimed in the ‘514 patent is directed to methods of treating patients needing treatment for Multiple Sclerosis with Biogen’s Tecfidera drug.
Mylan (MYL) told Bloomberg that it strongly disagrees with the USPTO ruling on Biogen’s (BIIB) patent for Tecfidera and pledged to appeal the patent ruling. Mylan continues to contend that Biogen’s Tecfidera patent is invalid.
This decision by the USPTO immediately set off bullish analyst actions in BIIB stock.
Goldman Sachs analyst Terence Flynn revealed a rating and $285 price target on Biogen after the USPTO issued a favorable decision for the company on its oral MS drug Tecfidera. Flynn said that, in his view, the decision eliminates a negative scenario for Tecfidera IP and he expects shares to react favorably. The analyst noted, however, that there are two ongoing state court cases with decisions expected in the middle of 2020. Flynn added that he anticipates investor attention will return to the Aducanumab BLA filing and a decision about whether to accept the filing for a review that was priority/standard from the FDA.
Mizuho analyst Salim Syed said after the USPTO published the final written decision on Mylan’s (MYL) challenge of the Tecfidera methods patent and ruled in favor of Biogen (BIIB), that investors should now extend Tecfidera protection against the consensus view of 2024-2025 out to the full duration of the 514 patent, or 2028. This ruling is worth about $15-$30 per Biogen shares to discounted cash flow, based on assumptions, Syed added. While Mylan can appeal to the United States Court of Appeals for the Federal Circuit, Syed says that overturning the decision sounds like a difficult hill to climb especially in light of the fact that this marks the third time Biogen has been victorious in a struggle over its Tecfidera patents. Syed maintains a rating and $300 price target on shares.
Baird analyst Brian Skorney raised his price target for Biogen (BIIB) to $290 from $250, after the PTAB released its decision on the Mylan (MYL) Tecfidera IPR, affirming validity of the’541 patent, which should maintain Tecfidera branded at the U.S. until 2028, though outcomes from two court cases remain. Even though he acknowledges that this is a clear positive for the stock, he believes the move is a big overreaction.
Cantor Fitzgerald analyst Alethia Young raised her price target for Biogen to $361 from $315 stating the Tecfidera patent ruling significantly reduces the intellectual property threat to the company’s multiple sclerosis base business. The analyst adjusted Tecfidera patents holding to 2028 to 80 percent from a previous reduction of market exclusivity. The stock’s big rally is fair, Young informs investors in a research note. She retains a Neutral rating on Biogen.
Credit Suisse analyst Evan Seigerman raised his price target for Biogen (BIIB) to $330 from $300 to reflect the de-risking of Tecfidera revenues after the USPTO issued its final written decision in case number: IPR2018-01403, stating that Mylan (MYL) hasn’t demonstrated that the challenged claims of Biogen’s 514 patent are non-patentable. While the Delaware and West Virginia court cases are still outstanding, he thinks this win gives Biogen the upper hand in settling with the ANDA filers to further secure Tecfidera exclusivity. Seigerman keeps a Neutral rating on Biogen due to aducanumab implementation risk and anticipated headwinds.
Wells Fargo analyst Jim Birchenough raised his price target for Biogen to $311 from $286 after the favorable patent ruling for crucial MS product TECFIDERA. While the positive IPR ruling eliminates one key intellectual property overhang, he notes that two additional patent decisions are still ahead that could provide overhang on Biogen shares through mid-year. He believes that defense of the key 514 patent does provide likelihood of trends through 2028 and that he would re-rate the stock if subsequent decisions are positive. However, in forthcoming aducanumab BLA filing outcome will drives ultimate growth assumptions, where uncertainty remains, he contends.
SVB Leerink analyst Marc Goodman raised his price target for Biogen to $410 from $350 saying the Tecfidera Patent Trial and Appeal Board decision is clearly great news for the company and a significant positive upside surprise to the investment community. Given BIIB stock’s movement, it appears that investors believe the district courts will have a similar result as this IPR ruling, he notes. In his investor talks it was also clear that investors have been waiting on the sidelines with this Tecfidera occasion to clear so they could own the stock for the aducanumab opportunity. Goodman now assumes that the product is protected out to 2028. He reiterates an Outperform rating on the shares.
BMO Capital analyst George Farmer increased his price target on Biogen (BIIB) to $317, saying the PTAB decision to throw out Mylan (MYL) claims questioning the validity of Tecfidera 514 patent removes an overhang on the stock. The analyst retains his Market Perform rating on BIogen, though he sees the potential acceptance of an aducanumab BLA in Alzheimer’s disease still carrying a substantial risk.
Nomura Instinet analyst Christopher Marai raised his price target for Biogen to $392 from $320 after the company received a favorable outcome in the inter partes review of its Tecfidera patent. Biogen continues to have patent protection and market exclusivity until 2028, and he keeps a Buy rating on the shares.
Oppenheimer analyst Jay Olson raised his price target for Biogen to $390 from $338, saying Biogen has outperformed on the strength of recent news such as the Tecfidera IPR decision and risdiplam upgrade.