Biogen (BIIB, Financial) contributed 0.5% to the Fund’s return, as its stock surged 30.9%. The biopharmaceutical company develops drugs that treat neurological and neurogenerative disease, including multiple sclerosis and spinal muscular atrophy. Its stock soared 40% in July after the FDA granted Priority Review status to the company’s application for its latest experimental Alzheimer’s treatment. The positive trial data surprised investors, who had abandoned the stock after prior clinical failures that led to management turnover.
We significantly trimmed our stake on the news but maintained a core position in Biogen, as upcoming milestones should drive the stock higher in ways uncorrelated with the broader market.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio) third-quarter 2022 commentary.
