Biogen halves Aduhelm's price and plots cost cuts as Medicare decision on controversial Alzheimer's drug nears

Awaiting a Medicare coverage decision on its controversial Alzheimer’s drug, Biogen is making an unexpected goodwill gesture—and initiating an expected restructuring—as it faces pressure from multiple fronts.

In an unusual move, Biogen has decided to cut Aduhelm’s price in the U.S. by about half, effective Jan. 1, 2022, the company said Monday. For a patient weighting 74 kg (163 pounds), the annual maintenance cost of Aduhelm will be $28,200 after the adjustment.

In tandem with the price cut, Biogen said it will launch an overhaul with the goal to cut $500 million in annual costs. Translation: Layoffs are likely around the corner. The company said it’s still finalizing the details and will unveil the plan in the first quarter next year.