synopsis

The small-cap biotech firm called the proposal "significantly undervaluing" the company and added that it was not in the best interest of its shareholders.

Biogen Inc. shares climbed 1.7% on Monday afternoon, reaching a nearly two-week high, as positive regulatory news countered fallout from a rejected acquisition proposal.

Sage Therapeutics announced its board had unanimously rejected Biogen's unsolicited Jan. 10 offer to acquire all outstanding Sage shares for $7.22 per share. 

The small-cap biotech firm called the proposal "significantly undervaluing" the company and added that it was not in the best interest of its shareholders.

Sage's board also revealed plans to explore strategic alternatives, cautioning that a transaction is not guaranteed. 

Meanwhile, Sage reaffirmed its commitment to establishing Zurzuvae as the standard treatment for postpartum depression. 

Biogen, which co-markets Zurzuvae, had argued that full ownership would aid its rollout but expressed little interest in Sage's broader pipeline when it placed its bid.

BIIB sentiment and message volume Jan 27 as of 1:20 pm ET | source: Stocktwits

Following the rejection, retail sentiment for Biogen turned 'bearish' on Stocktwits, with increased message volume reflecting investor concerns about the deal's implications.

However, Biogen received a significant boost as the FDA on Sunday approved a supplemental biologics license application for Leqembi, developed in collaboration with Eisai Co. Ltd. 

The new label allows for once-every-four-weeks intravenous maintenance dosing following an 18-month initiation phase of biweekly treatments.

Leqembi, used to treat early-stage Alzheimer's disease, addresses patients with mild cognitive impairment or mild dementia. 

The updated dosing regimen is expected to improve patient compliance while enhancing convenience.

However, Biogen's challenges remain stark; the stock has lost nearly 40% over the past 12 months.

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