This spreadsheet supplement corresponds to Exhibit 17 (Change in Biogen Valuation from Aducanumab Approval) from Case 623-046 "Biogen and the Aduhelm Melee."

Alzheimer's Disease is a devastating condition affecting millions of Americans. At this time, there is no cure. In 2021, Biogen's Aduhelm (aducanumab) received FDA approval under the accelerated approval pathway after a controversial approval process. This case explores Alzheimer's drug development, Aduhelm's clinical trials, FDA regulatory processes, the impact of the disease on payors and the broader healthcare system, the valuation of an Alzheimer's therapy, and the valuation of the company that produces it.

The case explores the intersection of capital allocation and shareholder activism in the biopharmaceutical industry. As many biopharma companies face looming patent expirations for key medicines, the case asks the question of whether investing in R&D and M&A is an imperative. Three biopharma companies have been under scrutiny by Elliott Management, one of the largest shareholder activists for various reasons. The range of investment options for biopharma companies are outlined, including investing in the business via R&D and M&A, and returning capital to shareholders via dividends and share repurchases. The uniqueness of large biopharma companies is reviewed including enviable profit margins, significant risk in R&D, questionable perpetuity value, and the pressure from shareholder activists to prudently deploy capital.