Biogen cuts the price tag on its Alzheimer's drug in half

Biogen is slashing the price of its Alzheimer’s treatment in half months after it debuted to widespread criticism for an initial cost that could reach $56,000 annually.

The drugmaker said Monday that it will cut the wholesale acquisition cost of the drug by about 50% next month. That means the annual cost for a person of average weight will amount to $28,200.

The actual amount that person would pay will depend on factors like insurance coverage.

Biogen CEO Michel Vounatsos said in a prepared statement that too many patients were not being offered the drug due to “financial considerations,” and their disease had progressed beyond the point where Aduhelm could help.

Aduhelm is the first in a line of new drugs that promise to do what no other Alzheimer’s treatment has managed: slow the progress of the fatal brain-destroying disease, rather than just managing its symptoms.

The drug received FDA approval in June, and the agency later said it was appropriate for patients with mild symptoms or early-stage Alzheimer’s.

But Aduhelm's debut has been slowed by concerns over the price and research behind the drug. Some insurers have balked at paying for the drug, while medical centers across the country have been either slow to decide on using the drug or said they weren't planning to prescribe it for now.

Doctors have said concerns over the price were compounded by costs patients also would face for regular testing and scans needed to monitor their progress on Aduhelm.

Biogen said in June that it would not raise its price on the drug for four years, and the company often touted its financial assistance programs for patients.

RBC Capital Markets analyst Brian Abrahams said he was not surprised by Biogen’s price cut. He said in a research note that the move was probably necessary...