What’s The Controversy Behind Biogen’s Alzheimer’s Drug?
The U.S.'s approval of Biogen's Alzheimer's drug Aduhelm was heralded as a historic triumph in the fight against the memory-robbing disease. But so far, Biogen has reported only a fraction of Aduhelm revenue to meet Wall Street's expectations. Patients and physicians have been torn over the drug's murky clinical data and its high price tag. Aduhelm's lackluster launch has been costly, forcing Biogen to take measures to keep the drug afloat.
The U.S. Food and Drug Administration’s approval of Biogen’s Alzheimer’s drug Aduhelm in June was heralded as a historic triumph in the fight against a disease that kills thousands of Americans every year.
But the excitement around the first FDA-approved drug to target the underlying cause of the memory-robbing disease—not just its symptoms—has ebbed since then. The drugmaker reported just $300,000 in revenue from Aduhelm sales during the third quarter, a fraction of what Wall Street was expecting.
Physicians have been split over whether clinical trial data proves the monoclonal antibody actually slows cognitive decline. What’s more, Medicare is debating whether to cover seniors on the government-run insurance program for Alzheimer’s treatments, a decision that is crucial to their profit potential.
The Centers for Medicare and Medicaid Services plans to issue a draft decision by mid-January, a spokesperson told CNBC.
Meanwhile, shares of the Cambridge, Massachusetts-based biotech have cratered roughly 40% since the beginning of June. Given Aduhelm’s lackluster debut, as well as generic competition for Biogen’s other drugs, the company now plans to cut $500 million in annual costs.
In December, it also said it would slash Aduhelm’s controversial $56,000 annual list price by about 50% in a bid to boost sales. The company anticipates 50,000 new patients could start Aduhelm in 2022 with insurance coverage and greater access to diagnostics and specialized centers.
“In terms of this new drug, we are keeping an open mind,” said Dick Novik, who retired from the broadcast business to help care for his wife, Eugenia Zukerman, following her Alzheimer’s diagnosis.
“If only there were a way of being more certain in our minds that it works,” Novik told CNBC.
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What’s The Controversy Behind Biogen’s Alzheimer’s Drug?
Видео What’s The Controversy Behind Biogen’s Alzheimer’s Drug? канала CNBC
The U.S. Food and Drug Administration’s approval of Biogen’s Alzheimer’s drug Aduhelm in June was heralded as a historic triumph in the fight against a disease that kills thousands of Americans every year.
But the excitement around the first FDA-approved drug to target the underlying cause of the memory-robbing disease—not just its symptoms—has ebbed since then. The drugmaker reported just $300,000 in revenue from Aduhelm sales during the third quarter, a fraction of what Wall Street was expecting.
Physicians have been split over whether clinical trial data proves the monoclonal antibody actually slows cognitive decline. What’s more, Medicare is debating whether to cover seniors on the government-run insurance program for Alzheimer’s treatments, a decision that is crucial to their profit potential.
The Centers for Medicare and Medicaid Services plans to issue a draft decision by mid-January, a spokesperson told CNBC.
Meanwhile, shares of the Cambridge, Massachusetts-based biotech have cratered roughly 40% since the beginning of June. Given Aduhelm’s lackluster debut, as well as generic competition for Biogen’s other drugs, the company now plans to cut $500 million in annual costs.
In December, it also said it would slash Aduhelm’s controversial $56,000 annual list price by about 50% in a bid to boost sales. The company anticipates 50,000 new patients could start Aduhelm in 2022 with insurance coverage and greater access to diagnostics and specialized centers.
“In terms of this new drug, we are keeping an open mind,” said Dick Novik, who retired from the broadcast business to help care for his wife, Eugenia Zukerman, following her Alzheimer’s diagnosis.
“If only there were a way of being more certain in our minds that it works,” Novik told CNBC.
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» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
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Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
#CNBC
What’s The Controversy Behind Biogen’s Alzheimer’s Drug?
Видео What’s The Controversy Behind Biogen’s Alzheimer’s Drug? канала CNBC
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