Biogen, Denali scrap Parkinson's drug after failure in mid-to-late stage study

Biogen and Denali Therapeutics said they will discontinue development of their Parkinson's drug after it failed to meet the main goal in a mid-to-late stage study. The setback removes a potential late-stage asset from both companies' pipelines and likely pressures sentiment toward their neuroscience programs. The news is negative for the two stocks, but the broader market impact should be limited.

Analysis

Biogen and Denali Therapeutics said they will discontinue development of their Parkinson's drug after it failed to meet the main goal in a mid-to-late stage study. The setback removes a potential late-stage asset from both companies' pipelines and likely pressures sentiment toward their neuroscience programs. The news is negative for the two stocks, but the broader market impact should be limited.