Aduhelm is the first in a line of new drugs that promise to do what no other Alzheimer’s treatment has managed: slow the progress of the fatal brain-destroying disease, rather than just managing its symptoms.
FILE - The Biogen Inc., headquarters is shown March 11, 2020, in Cambridge, Mass. Biogen is slashing the price of its Alzheimer’s treatment months after the drug debuted to widespread criticism for an initial cost that can reach $56,000 annually. The drugmaker said Monday, Dec. 20, 2021 that starting in January it will cut the wholesale acquisition cost of the drug by about 50%.
The drug received FDA approval in June, and the agency later said it was appropriate for patients with mild symptoms or early-stage Alzheimer’s.But Aduhelm's debut has been slowed by concerns over the price and research behind the drug. Some insurers have balked at paying for the drug, while medical centers across the country have been either slow to decide on using the drug or said they weren't planning to prescribe it for now.
RBC Capital Markets analyst Brian Abrahams said he was not surprised by Biogen’s price cut. He said in a research note that the move was probably necessary and should “give Aduhelm its best opportunity for success.” The initial price was a key factor behind planned premium hikes for Medicare, the federal government’s coverage program for people ages 65 and older and for the disabled.
Aduhelm clears brain plaque thought to play a role in Alzheimer’s disease, and U.S. regulators gave their approval based on study results showing the drug seemed likely to benefit patients. But they’ve asked for more research. Biogen said in October that Aduhelm had brought in only $300,000 in sales during its first full quarter on the market. The company attributed that figure partly to drug wholesalers drawing down inventory they had purchased the previous quarter.
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