That stock was Biogen (NASDAQ:BIIB), a biopharmaceutical company. It sliced 69 basis points from the Fund’s return, as the stock plunged 21.5% from $300.92 to $236.38. (For this report, we quote total return to the portfolio, which includes price change and dividends.) Advanced clinical trials for Biogen’s new Alzheimer’s drug failed, prompting the drug’s withdrawal. The failure dashed the hopes of Biogen’s shareholders, scientists and society, which still grapples with this devastating and incurable disease. Despite the setback, we believe Biogen can recover based on the company’s leadership positions in the treatment of multiple sclerosis and spinal muscular atrophy. Both businesses generate strong cash flows that can support the stock.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund first-quarter 2019 shareholder commentary.
