Biogen Idec names new chairman, announces positive drug test results

This wasn't the only news for BIIB, as the company has announced positive results from its first Phase III trial of ocrelizumab in rheumatoid arthritis patients. This drug is a joint project with Roche's (RHHBY) Genentech.

When the the anti-CD20 monoclonal antibody orcelizumab was given in combination with methotrexate, a common rheumatoid arthritis treatment, the study showed it improved signs and symptoms in rheumatoid arthritis patients. The two companies will continue to look at the test results and will submit the data at an upcoming medical meeting. However, the study also showed that there was a higher percentage of serious infections in patients taking ocrelizumab.

Technically, BIIB is in the midst of a sideways trending channel that started in late 2008. The stock has bounced between its 20-month moving average and the $41 region throughout this time. Will this flurry of news help the company snap out of this range? The 20-month trendline is rather staunch in its role as resistance, so it may take a bit more than a positive drug trial result to usher the shares higher.

The stock also faces resistance from its descending 50-week moving average, which is going to make a march higher all the more difficult. Nevertheless, biotech is an industry that many have turned to during difficult financial times. I don't expect this to change.