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Investing.com – Biogen stock (NASDAQ:BIIB) fell 0.7% on Monday after the company said it is cutting prices of its Alzheimer’s drug aduhelm to $28,200 per year for an average weight person.
The cut, about half of the previous price, comes as sales were slow to take off because of the high-cost treatment. Many hospitals refused to support the treatment.
On June 7, aduhelm became the first drug in 18 years to secure the U.S. Food and Drug Administration’s nod for treatment of patients suffering from the neurodegenerative disease.
The approval attracted much flak from various stakeholders because of perceived lack of benefits of the treatment over existing alternatives. The controversy over the approval was further stoked by the expensive annual $56,000 price tag of the treatment. Biogen’s price for treatment of an average weight person was seen as a significant burden on Medicare, which covers more than 60 million people.
At least three members of the FDA’s advisory panel resigned in protest against the regulator’s nod.
The company now believes with insurance coverage, and access to diagnostics and specialized centers, approximately 50,000 patients may initiate treatment with aduhelm in 2022.
Biogen also said it will implement cost-reduction measures in 2022 to better align its costs with its revenue base, which is expected to be affected by the continued entry of generics in multiple sclerosis, as well as the delayed uptake of aduhelm.
