Biogen is having a bad day. The investors (the new ones anyway) are feeling the reeling pain of investing into biotech names. This is the truth of reward to risk. When you play in high-beta names as an investor, unfortunately, this can be an outcome. Biogen (Ticker: BIIB) is discontinuing their Alzheimer drug trial. During Phase 3 trial testing, an independent study provided them with little answers and they decided based on the findings they cannot continue the study. What makes this difficult is the pricing of the study was baked into the stock price. Meaning, the stock price is a reflection of future valuations of a company. Since BIIB will not be making any revenue from their Alzheimer drug treatment, traders and investors took profits or took risk off. The second part of this scenario is that BIIB does not have anything that will be a catalyst to the previous pricing of their stock. So now that it is down nearly 30%, there is nothing really to allow the stock to rally back to the higher valuation. This means the stock price is now correcting itself to the current fundamentals and it could mean that BIIB continues lower. This sucks for the investors currently in Biogen. I hope they can recover from this fallout.