More than six million Americans have Alzheimer’s disease and, as Barron’s highlighted in February, it has been nearly two decades since a new treatment for the disease was approved. Still, experts wondered if aducanumab was enough. An FDA advisory committee said in November that data collected by Biogen did not prove the drug’s effectiveness.

The FDA’s move is sure to spark a big move in Biogen’s actions. Jefferies analyst Michael Yee wrote on May 12 that the stock could climb to 70% if the drug is approved and drop to 40% if it is rejected.

And there will be ripple effects. Biogen shares represent 3.6% of

iShares Nasdaq Biotechnology

exchange-traded fund (IBB). Biogen’s success would boost ETF and help biotechnology recover from a recent plunge.

But for Biogen, the challenges won’t end on June 7. Even if aducanumab is approved, healthcare payers might be hesitant to pay for it. The Institute for Clinical and Economic Review, an influential voice on drug pricing, released a draft report on May 5 that presented aducanumab prices based on cost-benefit calculations. They are a fraction of the price Biogen would have to charge if the drug is approved.

Next week

Monday 31/05

Equities and Fixed Income markets are closed on Memorial Day.

The organization for Economic Cooperation and Development publishes its latest economic outlook. In its March interim report, the OECD forecast a 5.6% growth rate for global gross domestic product in 2021, upward revision of one percentage point from the December 2020 forecast.

Tuesday 6/1

Bank of Nova Scotia,

Canopy growth,

Hewlett Packard Enterprise,

and

Focus on video communications

announce quarterly results.

The Institute of Supply Management publishes its manufacturing purchasing managers index for the month of May. The consensus estimate is for a reading of 60.8, roughly even with the data for April.

The census office reports construction spending for April. Expectations are a 0.6% month-over-month increase at a seasonally adjusted annual rate of $ 1.52 trillion. Construction spending remains just below its all-time high in January of this year.

Wednesday 6/2

Advance Auto Parts,

NetApp,

and PVH declare profits.

Philip Morris International

hosts a webcast led by CEO Jacek Olczak to discuss the company’s sustainability strategy.

The Federal Reserve is releasing the beige book for the fourth of eight times this year. The report presents anecdotal data on the health of the economy collected by the 12 districts of the Federal Reserve Bank.

Thursday 6/3

ADP publishes its National Employment report for May. The consensus estimate points to a gain of 610,000 jobs in the private non-farm sector, following an increase of 742,000 in April.

Broadcom,

Cooper

Cos.,

DocuSign,

Jm smucker,

and

Lululemon

Athletica hosts conference calls to discuss income.

The Bureau of Economic Analysis reports total light vehicle sales for the month of May. In April, they reached a seasonally adjusted annual rate of 18.5 million, the highest figure since July 2005.

ISM publishes his PMI Services for May. The consensus estimate is for a reading of 63.2, down from 62.7 in April.

Friday 6/4

Amgen

hosts a conference call to discuss drug trial data from its oncology pipeline. The information will be presented at the 2021 annual meeting of the American Society of Clinical Oncology, which will take place virtually June 4-8.

The labor office The statistics release the May jobs report. Economists are forecasting an increase of 700,000 in non-farm payrolls, after a relatively modest gain of 266,000 in April. The unemployment rate is expected to fall to 5.9% from 6.1%. April’s increase was a huge shortfall from the $ 1 million jump some economists had expected.

Write to Josh Nathan-Kazis at [email protected]