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Biogen’s Alzheimer drug suffers setback as hospitals decline its use

By Shubhangi on Jul 16, 2021 | 04:36 AM IST

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Biogen Inc’s drug for Alzheimer’s disease, Aduhelm, suffered another setback on Thursday as large hospitals declined to use it.

One of the largest health-system in US, Cleveland Clinic and New York's Mount Sinai Health System on Thursday decided to not Biogen’s drug.

"The tide turned on Friday when the inspector general investigation was announced, and the potential allegation of irregularity in the FDA/Biogen relationship," Dr. Sam Gandy, said director of the Mount Sinai Center for Cognitive Health, reported Reuters.

Insurers, on the other hand, are awaiting a decision for coverage terms from Medicare.

UnitedHealth Group, the largest private insurer offering Medicare Advantage coverage to seniors, on Thursday said it was still reviewing the drug and awaiting input from Medicare.

"This has some way to go before we get to real clarity. So I wouldn't guide you to expect a very rapid decision-making on this piece," CEO Andrew Witty said, reported Reuters.

Shares of the company fell by 8% on Thursday on account of the decision by hospitals to not use the drug.

The Washington, D.C., Neurology Center in June said that it would not use the drug as its efficacy, safety and cost are controversial.

The U.S. Food and Drug Administration had approved the drug in June even after facing criticism from experts and mixed clinical trial results.

(With inputs from Reuters)

Picture Credits: Reuters

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