Biogen lower as Medicare officially limits coverage for Alzheimer’s drug
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Biogen (NASDAQ:BIIB) shares are trading lower in the post-market Thursday after the Centers for Medicare & Medicaid Services (CMS) announced its final decision to limit the coverage on Alzheimerâs drug, Aduhelm (aducanumab), which was developed by the company with Eisai (OTCPK:ESALY).
Accordingly, FDA-approved monoclonal antibodies that target a protein called amyloid will only be covered in a clinical trial conducted with regulatory authorization.
CMS Administrator Chiquita Brooks-LaSure said that the decision was aimed at protecting patients while data are collected on Aduhelm to indicate whether it actually helps patients to slow down the cognitive decline.
"It's our obligation at CMS to really make sure it's reasonable and necessary," The New York Times reported quoting Ms. Brooks-LaSure.
She added that "the vast majority" of nearly 10,000 public comments the agency received following the proposal in January were in favor of "really limiting coverage of Aduhelm to a really controlled space where we could continue to evaluate its appropriateness for the Medicare population."
Other drugmakers with similar drugs in the pipeline: Eli Lilly (NYSE:LLY)'s donanemab and Roche's (OTCQX:RHHBY) gantenerumab.
In January, Biogen (BIIB) and Japanese partner Eisai (ESALY) shares dropped when Medicare proposed to severely restrict access to Aduhelm and similar drugs.