Did Biogen Just Throw In The Towel To Celgene?

Specialty medicines are only used by 1-2% of the U.S. population, but they're downright costly. In fact, in 2015 specialty drugs represented 37% of nationwide drug spend, and this figure is expected to reach 50% by 2018. With inflammatory conditions and multiple sclerosis (MS) standing out as the two most expensive specialty drug classes (accounting for $89.10 and $53.31 per member, per year spend respectively), it is no wonder that these are some of the most highly competitive markets for new drug entrants. However, with the news that Biogen (NASDAQ:BIIB) quietly discontinued future development of their experimental anti-inflammatory and autoimmune product MT-1303, did Biogen just wave the white flag to Celgene (NASDAQ:CELG)? It's time for a deeper dive.