Biogen, a leading biotechnology company, recently announced its decision to discontinue the development of Aduhelm, an Alzheimer’s disease drug that has faced commercial challenges. However, the company remains committed to advancing Leqembi, another treatment for this debilitating memory-loss disease.
The decision to halt the development of Aduhelm is not based on any safety or efficacy concerns, according to Biogen. In a statement, the company explained that the resources previously allocated to the Aduhelm program will be redirected to support Biogen’s Alzheimer’s Disease franchise.
Aduhelm had received accelerated approval from the U.S. Food and Drug Administration in June 2021. In an attempt to secure potential partners or external financing for Aduhelm, Biogen initiated a search last January, but unfortunately did not succeed.
As a result of this strategic shift, Biogen expects to incur a one-time charge of approximately $60 million in its fourth quarter related to close-out costs for the Aduhelm program.
On the other hand, Leqembi, developed in collaboration with Eisai, received full approval from the Food and Drug Administration in July of last year. This underscores Biogen’s commitment to finding effective treatments for Alzheimer’s disease.
In premarket trading on Wednesday, shares of Biogen experienced a minor decrease of 0.2%, reaching $246.48.