Biogen has announced that it will discontinue sales of its Alzheimer’s medication Aduhelm. This drug was previously expected to be a major success, but faced setbacks after its initial release.

On Wednesday, the pharmaceutical company announced that it will discontinue a trial for the medication required for complete authorization from the Food and Drug Administration.

According to a company spokesperson, individuals around the globe are currently using Aduhelm, a medication available through the commercial market, and can continue to do so until November. There are approximately 2,500 patients currently on this medication.

Biogen announced that it will shift its attention to alternative treatments for the deadly condition that causes cognitive decline. The company is also assisting Japanese pharmaceutical company Eisai in marketing another drug for Alzheimer’s, Leqembi, which was granted full approval by the FDA in the previous summer.

Leqembi is the inaugural medication that has been scientifically proven to delay the decline in cognitive function attributed to Alzheimer’s disease, albeit to a limited extent. It has been authorized by regulators for individuals experiencing mild dementia and other indications of early-stage Alzheimer’s.

In 2021, Aduhelm was introduced as the first new medication for Alzheimer’s disease in almost twenty years. While the FDA initially approved it for use, they also mandated further research before granting full approval, potentially leading to more widespread insurance coverage.

Aduhelm offered to decelerate disease advancement rather than solely treating its symptoms, unlike other medications available.

At first, it was priced at $56,000 annually and experts believed it would be a huge success, bringing in billions for Biogen. The Medicare program of the federal government increased the cost of their coverage due to the anticipated increase in Aduhelm claims.

However, physicians were cautious about recommending the use of the intravenous medication, as there was insufficient proof that it significantly enhanced the quality of life for those with Alzheimer’s disease. Insurance companies also placed restrictions on coverage. Eventually, Medicare reduced its increased cost and implemented stringent criteria for eligibility.

This posed a significant difficulty for Biogen. The majority of Alzheimer’s patients in the United States are of an age eligible for the federal program, which provides coverage for individuals aged 65 and above.

In 2022, Biogen announced that they would significantly reduce their promotion of Aduhelm, as it only generated millions, not billions, in quarterly sales.

In the previous year, Biogen initiated an unsuccessful pursuit for external funding or collaborations to assist with Aduhelm. This was conducted as a part of the company’s evaluation of its research and development initiatives.

During the review, Biogen took into account the necessary time and resources for the additional study, as well as potential advancements in the field, before Aduhelm could be fully approved.

Besides Leqembi, individuals who are sick may also have another choice for treatment in the near future. The Food and Drug Administration is currently evaluating a potential medication created by Eli Lilly and Co. A verdict is anticipated to be announced at the beginning of this year.

Biogen announced that it will incur a charge of approximately $60 million in the fourth quarter due to the discontinuation of the Aduhelm program.

Biogen Inc., headquartered in Cambridge, Massachusetts, saw its stock rise by approximately $4 to reach $251.11 during mid-morning trading, while the Standard & Poor’s 500 index experienced a decline.

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