Dismal performance, side effects... Can Bojian Aduhelm cut its price by 50% to open up the market?

On December 20, 2021, Eastern Time, Bojian decided to reduce the price of Aduhelm in the United States by about half

Bojian’s unexpected favor this time stems from the pressure it faces from multiple sources: sales are not satisfactory, the pharmaceutical industry has many doubts about the effect of Aduhelm, reports of possible side effects, and waiting for the underwriting decision of medical insurance.

While cutting prices, Bojian stated that it will carry out an internal cost reduction plan, with the goal of cutting costs by US$500 million per year

This is an unusual move

When Bojian was approved by the FDA in June 2021 and released its annual price of $56,000, many industry observers expressed surprise at the price that exceeded expectations

At the same time, given that the results of the two phase III trials seem to be contradictory, as well as the risk of potentially life-threatening complications, Aduhelm faces major questions about its effectiveness and safety

CMS recently launched a nationwide study to weigh Aduhelm and other similar antibodies against toxic beta amyloid plaques in the brain to treat Alzheimer's disease

Biogen CEO Michel Vounatsos said in a statement that the upcoming CMS decision is a “critical moment for companies and patients related to Alzheimer’s disease treatment,” and the company hopes that its actions “will promote patients’ access to these innovative Alzheimer’s Treatment of Zheimer's disease"

A recent survey conducted by Bloomberg found that most of the 25 major insurance companies in the United States are uncertain about Aduhelm's earnings and risk measurement status

Bojian estimates that if insurance coverage is in place, and diagnosis and professional center services are also available, by 2022, nearly 500,000 patients will begin to use Aduhelm for treatment

In order to confirm the effect of Aduhelm and alleviate doctors’ concerns, Bojian plans to start a phase IV clinical trial of the FDA-authorized drug in May next year, and is expected to start reading the trial data in 2026

Reference source: Biogen halves Aduhelm's price and plots cost cuts as Medicare decision on controversial Alzheimer's drug nears