By Dhirendra Tripathi
Investing.com – Biogen Inc (NASDAQ:BIIB) stock fell almost 5% on reports two major U.S. medical centers, Cleveland Clinic and Mount Sinai, have decided against using its Alzheimer’s drug aduhelm.
The New York Times was the first to break the news.
UnitedHealth Group Incorporated (NYSE:UNH) said on its investor call it hasn't yet decided on the drug.
On June 7, aduhelm became the first drug in 18 years to secure Food and Drug Administration’s nod for treatment of patients suffering from the neurodegenerative disease.
The FDA has been accused of ignoring the advice of its own outside advisors, who said Biogen did not provide enough evidence of clinical benefit over the existing prescriptions. According to some, FDA’s decision was hasty.
Three members of the FDA’s advisory panel resigned in protest against the regulator’s decision.
The controversy over the approval was further stoked by the expensive annual $56,000 price tag. It is not yet clear whether Medicare will cover the expenses and who all would qualify to get it.