Biogen CEO Says $56,000 Annual Price For Alzheimer's Drug Reflects 'Two Decades Of No Innovation'

Biogen Inc BIIB CEO Michel Vounatsos has justified the annual $56,000 list price for its newly approved Alzheimer’s disease drug aducanumab as “fair,” CNBC reported Monday.

What Happened: Speaking on CNBC’s “Power Lunch” program Vounatsos said the price of the drug reflects “two decades of no innovation” and will help the drugmaker invest in medicines for other diseases.

The executive disclosed that the company is working closely with Medicare as well as private insurers. 

Vounatsos was asked about pushback by patients on the high cost and in response said that the disease and other types of dementia cost the United States over $600 billion annually and the patients $500,000 per year. He told CNBC it was time to “invest” in the treatment.

Biogen shares soared 38.34% to $395.85 in the regular session on Monday and another nearly 0.4% in the after-hours trading.

See Also: Why Biogen's June 7 Aducanumab PDUFA Date Is A High-Risk, High-Reward Catalyst

Why It Matters: Biogen was given approval by the U.S. Food and Drug Administration for aducanumab on Monday under its accelerated approval pathway.

The drug is sold under the brand name Aduhelm and is the first Alzheimer's treatment approved since 2003.

The FDA admitted that the clinical benefit of the treatment is marred by uncertainties.

In November, aducanumab, an antibody that targets amyloid-beta plaques, failed to win the backing of a critical FDA panel.

Photo Courtesy: Biogen