The Associated Press (AP) — Biogen will replace its CEO and largely abandon marketing of its controversial Alzheimer's drug Aduhelm less than a year after the medication's launch triggered a backlash from experts, doctors and insurers.
CEO
For now, Biogen said it is “substantially eliminating” spending on Aduhelm as part of a
The announcement represents a stark acknowledgement that the
Aduhelm was the first new Alzheimer’s drug introduction in nearly two decades. Initially priced at
But doctors have been hesitant to prescribe it, given weak evidence that the drug slows the progression of Alzheimer’s. Insurers have blocked or restricted coverage over the drug’s high price tag and uncertain benefit. Even the company's decision to slash the drug's price in half— to
The biggest setback came last month when the federal government's Medicare health plan imposed strict limits on who can get the drug, wiping out most of its potential U.S. market. The vast majority of
The infused drug brought in just
Biogen said Tuesday that it booked about
Aduhelm expenses dragged down the company's quarterly results and Biogen fell short of
Biogen executives said the restrictive Medicare decision essentially denied Aduhelm to most eligible
Biogen will continue running a federally-mandated confirmatory trial designed to establish if the drug truly slows Alzheimer's.
The drugmaker's quarterly revenue fell 6% to
For the year, Biogen reaffirmed earnings guidance of between
Biogen executives said they will continue pursuing new Alzheimer’s treatments including a drug similar to Aduhelm. Researchers are awaiting last-stage testing results for the drug in the fall. But the company also highlighted other drugs in its pipeline, including potential treatments for depression and schizophrenia.
Vounatsos departure was expected “given the many setbacks the company has faced,”
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