Biogen (NASDAQ: BIIB) could price its Alzheimer’s drug, Lecanemab, developed along with Essai as high as $20,000 every year, Barron’s reported on Friday, citing data from The Institute for Clinical and Economic Review.
The Institute stated that to meet “traditional cost-effectiveness thresholds,” Lecanemab is likely to be priced between $8,500 and $20,600 per year.
This price range is still lower than the price BIIB had set last year for Aduhelm, another of its Alzheimer’s therapy. Aduhelm had suffered several setbacks earlier this year as many Alzheimer’s experts noted that Aduhelm’s benefits were at best “uncertain.” Worse, the safety risks involved with Aduhelm were significant enough to potentially outweigh the benefits.
The high price of Aduhelm was another major concern as Biogen had priced it as high as $56,000 per year, before slashing the price to $28,000. But even with the reduced price, efforts to commercialize Aduhelm failed when the Center for Medicare and Medicaid Services refused to pay for the drug as part of its Medicare plans.
It remains to be seen whether Lecanemab would meet with the same fate.
Analysts are cautiously optimistic about BIIB stock with a Moderate Buy consensus rating based on 19 Buys and seven Holds.
