Biogen Slumps After Medicare’s Restrictive Decision on Alzheimer’s Drug

Shares of Biogen Inc fell nearly 10 percent on Wednesday after the U.S. government announced limited coverage of Alzheimer’s treatments including the drugmaker’s Aduhelm, dealing a blow to the controversial treatment that was approved last year. Biogen had been banking on the government’s coverage decision to help drive up sales of Aduhelm, which it hoped would help counter the hit to revenue from some of its main drugs from rising competition. If the draft decision by the U.S. Centers for Medicare and Medicaid Services (CMS) goes through, it could result in negligible Aduhelm sales in 2022 and 2023, analysts said. The clinical trial enrollment requirement is another setback and creates more roadblocks for getting access to Aduhelm, said Jefferies analyst Michael Yee. Aduhelm became the first new treatment for the memory-robbing disease in nearly twenty years after it won approval from the U.S. Food and Drug Administration in June, despite …

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