Biogen C.E.O. to Step Down Following Launch of Alzheimer’s Drug, Aduhelm

Biogen reported on Tuesday that it would change its main govt and properly give up on advertising and marketing a significant-profile Alzheimer’s drug that has been a commercial failure due to the fact its controversial approval virtually a calendar year in the past.

Michel Vounatsos, who has led the drug maker for about 5 several years and presided over the acceptance and start of the drug, acknowledged as Aduhelm, will keep on being in his position till a successor is appointed, Biogen claimed.

Biogen claimed it prepared to “substantially eliminate” its paying on the drug right after Medicare formally determined very last thirty day period to sharply limit its protection of Aduhelm.

The Food items and Drug Administration approved Aduhelm in June. It was the very first new treatment for Alzheimer’s in practically two many years. It experienced been broadly expected to grow to be a blockbuster drug inside many decades, creating billions of pounds per year for Biogen. But the acceptance was overshadowed by concern about the drug’s unproven benefits and serious protection risks, as very well as about the system by which the F.D.A. had greenlighted it.

Medical doctors, insurers, and sufferers and their family members have not embraced Aduhelm. On Tuesday, Biogen claimed that the drug had brought in just $2.8 million in revenue in the initially a few months of this year, immediately after generating only $3 million in 2021. Biogen to begin with priced the drug at $56,000 per 12 months for the regular affected person just before halving the price in response to weak early profits.

Aduhelm experienced been expected to strain governing administration wellbeing budgets. But Medicare made the decision to fork out for the drug only for folks who receive it as individuals in a medical demo. Final month, Biogen stated it would withdraw its application to current market the drug in the European Union immediately after drug reviewers indicated that it was not likely to earn acceptance.