Roche Holding AG (ROG.CH) stock fell over 3.0% on Monday after the Swiss drug maker announced its Alzheimer's drug candidate called gantenerumab could not clearly be shown to slow dementia progression. Compared against placebos, the drug showed no statistically significant effect in the two studies, the company said.
Despite negative news Jefferies analysts maintained their buy rating on the stock as in their opinion gantenerumab's failure was likely widely assumed, and longer-term buyers of the stock should mitigate losses.
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Open real account TRY DEMO Download mobile app Download mobile appFollowing the news shares of its main competitors Eli Lilly (LLY.US) and Biogen (BIIB.US) which are also working on Alzheimer’s drugs rose 1.5% and 5.5% in prearket respectively. In Septemeber Biogen announced its experimental treatment had slowed the progress of the disease by 27%.
Roche Holding AG (ROG.CH) stock launched today's session with a massive bearish price gap, however the downward move was halted around the upward trendline. Currently buyers are trying to erase losses and price is heading towards local resistance at CHF 319.00, which coincides with 61.8% Fibonacci retracement of the upward wave launched in March 2020. Should we see a break above it, bulls' attention will shift to key resistance at CHF 335.50, marked with the 50.0% retracement. Source: xStation5
