- The stock price of Biogen Inc (NASDAQ: BIIB) fell by over 6% during intraday trading today. This is why it happened.
The stock price of Biogen Inc (NASDAQ: BIIB) fell by over 6% during intraday trading today. Investors are responding negatively to a decision by the U.S. Medicare for limiting coverage of Alzheimer’s treatments — which includes Biogen’s Aduhelm. This will impact the sales of the company’s drug and also have a negative impact on the prospects for similar treatments. This news also caused the stock prices of Eli Lilly and Roche Holdings to fall as well.
Biogen was depending on the government’s coverage decision to help increase the sales of Aduhelm — which got approved in June. The U.S. FDA’s outside advisors’ expressed opinions that the clinical benefits of the treatment were not proven yet though.
The coverage decision was made by the U.S. Centers for Medicare and Medicaid Services (CMS), which is the healthcare agency that runs Medicare.
Biogen reduced the price of Aduhelm to $28,200 for an average-weight person. Many hospitals were complaining about the high cost of Aduhelm. Yesterday, the CMS said it is planning to cover Alzheimer’s treatments for patients enrolled in a trial, according to Reuters.
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