Sometimes the best news for your stock is when a competitor stumbles. That's essentially what happened to Biogen Inc. (BIIB) on Monday, as shares rose following disappointing trial results from Novo Nordisk A/S (NVO).

Novo Nordisk released topline results from its Evoke and Evoke+ phase 3 trials testing semaglutide in early-stage symptomatic Alzheimer's disease. The two-year analysis showed the drug failed to demonstrate superiority versus placebo in slowing disease progression, measured by the Clinical Dementia Rating – Sum of Boxes (CDR-SB) score compared to baseline.

This matters because the Alzheimer's treatment landscape remains remarkably sparse. Only two disease-slowing drugs have secured approval: Eli Lilly and Co.'s (LLY) Kisunla and Leqembi (lecanemab), which is jointly developed by Eisai and Biogen. Both require infusions or injections and carry risks of serious side effects, making them far from ideal solutions but currently the best options available.

Leqembi's Safety Considerations

Speaking of side effects, the FDA tightened safety requirements for Leqembi back in August. The agency now requires an additional MRI scan for Alzheimer's patients receiving the treatment, citing concerns over a rare but potentially fatal side effect.

Leqembi received FDA approval in 2023 and is designed to slow Alzheimer's progression in patients with mild cognitive impairment or early-stage dementia. The antibody therapy works by targeting beta-amyloid plaques, those protein deposits in the brain that are linked to the disease's progression. The goal is to reduce these plaques and preserve cognitive function during the earliest stages of the disease.

Building the Immunology Portfolio

Also on Monday, Biogen announced a research collaboration with Dayra Therapeutics to discover and develop oral macrocyclic peptides for priority targets in immunological conditions.

Here's why this is interesting: macrocyclic peptides potentially offer biologic-like efficacy and safety but in an oral format. That's a big deal because it could disrupt established antibody-based treatments that typically require injections or infusions. Taking a pill is always going to be more appealing than getting stuck with a needle.

The collaboration strengthens Biogen's strategy to build a differentiated immunology portfolio beyond its neurology franchise.

Under the agreement terms, Dayra Therapeutics receives a $50 million upfront payment. Biogen also secured an option to acquire development candidates from Dayra Therapeutics for additional payments per program. Dayra remains eligible for preclinical and clinical development milestone payments for each program.

Biogen shares were up 3.74% at $181.85 at the time of publication Monday, hitting a new 52-week high. The combination of a competitor's setback and a promising new research partnership created a rare double boost for the stock.