Biogen Idec, Inc. (BIIB)

mgknop (< 20) Submitted: 11/22/06 1:04 PM : Start Price: $51.74 BIIB Score: 21.51

Biogen Idec was pummeled after Tysabri was voluntarily pulled; the stock fell approximately 50%. This was a gross over-reaction fueled in part by the Merck Vioxx issues going on. However, Tysabri is used by a group of patients who want desperately to overcome their symptoms and the disease itself - MS is a horrible disease. They will continue to demand Tysabri and will go to great lengths to get it - including jumping through all of the hoops that the FDA now has in place for the drug. The risk associated with contraction of PML (the often fatal infection observed in some patients)is low compared to the relief achieved through use of the drug. In addition, all cases of PML were contracted when patients were using multiple immune system suppressants (Tysabri and another immunosuppressant drug) simultaneously. Although the stock has begun its rise (currently around $52), I expect it will continue to rise as investors realize that the patients are going to continue to increase demand and continue to drive up profits. In addition, BIIB's portfolio is strong and will be for some time.

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