A couple of points to make, riffing off the tweet below, on the subject of sell-side analysts remaining bullish on Alzheimer’s disease drugs like Biogen’s (BIIB) aducanumab even when the historical failure rate is pretty much 100 percent.

Sell-side analysts are smart people who work in a dumb system called Wall Street that basically rewards them for being optimistic, even when the facts — or for biotech analysts, the clinical data — suggest otherwise.

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  • “If the drug fails, the stock could fall to $250, which is roughly the price at which many analysts set “zero pipeline value” for the company.”
    — why would shares in a company with nothing of value in the pipeline be priced at $250/share???

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