Why Biogen and L Brands Rose on October 5
Biogen (BIIB) was one of the top gainers in the S&P 500 on October 5. After trading with mixed sentiment in the first three trading days of the week, Biogen opened higher on Thursday and surged to three-week high price levels.
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We saw buying pressure on Biogen after management announced data regarding Spinraza, Biogen’s drug to treat spinal muscular atrophy. As per management, the use of Spinraza in the earlier stages of the disease may improve motor function in children and infants. This announcement improved market sentiment on Biogen. Spinraza became the first-ever drug approved by the FDA to treat this disease in January 2017.
Plus, an upgrade to Biogen from Morgan Stanley also added strength to the rally. Morgan Stanley upgraded Biogen from “equal-weight” to “overweight.” The strong pipeline of drugs being developed by Biogen to treat Alzheimer’s disease, along with confidence about the potential of Biogen’s upcoming therapies, made Morgan Stanley upgrade the stock.
On October 5, Biogen surged 3.75% and closed the day at 326.75. The S&P 500 healthcare sector rose 0.05%.
L Brands (LB) was one of the top gainers of the S&P 500 on Thursday. The stock opened lower on Thursday but regained strength in the afternoon session as September sales data came out in line with expectations.
According to management, September sales rose to $981.6 million from August’s reading of $971.4 million—growth of 1.1%. On the other hand, comparable sales fell 2%. Amid the exit of L Brands from the swim and apparel categories, L Brands expected same-store sales to fall 2% in September. On October 5, L Brands rose 3.46% and closed the day at $42.79—the highest daily close in a month. The SPDR S&P Retail (XRT) ETF rose 0.75%.
In the next part of this series, we’ll discuss the S&P 500’s biggest losers on October 5.