Insurance coverage and prescriptions of Aduhelm (aducanumab) for the treatment of Alzheimer’s have been slow so its maker, Biogen Inc., is slashing the drug’s price by 50% in order to increase sales, according to MedCity News.
Biogen’s move comes as a Center for Medicare and Medicaid Services decision on coverage of Aduhelm looms in 2022.
In June, the Food and Drug Administration (FDA) approved Aduhelm for the treatment of Alzheimer’s, a debilitating disease affecting more than 6 million Americans.
Since the approval, Biogen set a wholesale price of about $56,000 a year. The new wholesale price will be $28,200 a year, which will take effect on January 1, 2022.
Aduhelm is an amyloid beta-directed monoclonal antibody, which targets aggregated forms of amyloid beta found in the brains of people with Alzheimer’s. Simply put, the drug reduces the accumulation of amyloid-beta plaque.
Of more than 6 million Americans who have Alzheimer’s, an estimated 1 to 2 million people have mild dementia or mild cognitive impairment that would qualify for getting treated with Biogen’s drug. However, sales are low.
Certain groups criticized Biogen for the drug’s high price tag. For instance, the Institute for Clinical and Economic Review (ICER) said in August that there is inadequate evidence of the drug’s benefit.
The group also recommended a lower price to avoid the strain that the financial burden the drug would place on the Center for Medicare and Medicaid Services and the budgets of patients. The ICER proposed a price in the range of $3,000 to $8,000 a year.
Biogen has estimated that nearly 50,000 patients may start treatment with Aduhelm in 2022.
On Monday, Biogen CEO Michel Vounatsos said that too many patients are not being offered the drug due to financial considerations. He also said that the disease in these patients is “progressing beyond the point where they can benefit from treatment.”
Vounatsos said the challenge of providing patients access to Aduhelm “must be addressed in a way that is perceived to be sustainable for the U.S. healthcare system.”
Last week, Biogen revealed plans for the post-marketing clinical trial that is a requirement of the drug’s accelerated approval, according to MedCity News.
Also, last week, the European Medicines Agency (EMA) recommended the refusal of Biogen’s application for marketing authorization, referring to the lack of an association between amyloid reduction, patient improvement, and safety risks from brain swelling and bleeding. The Massachusetts-based company said it would appeal to EMA’s opinion.
