Bernie Sanders Takes on High Costs of Alzheimer's Treatment Leqembi, Calls Price Tag 'Unconscionable'

Senator Bernie Sanders urged the U.S. Department of Health and Human Services (HHS) to immediately address the exorbitant cost of Eisai Co Ltd (OTC: ESALY)/Biogen Inc (NASDAQ: BIIB) Alzheimer's treatment Leqembi (lecanemab). 

Wednesday, the FDA released briefing documents ahead of the meeting that appears to support a full FDA approval for Leqembi.

In a letter to HHS Secretary Xavier Becerra, Sanders, who chairs the Senate Health Committee, expressed his deep concern over the annual price for Leqembi at $26,500, which he described as "unconscionable."

Sanders emphasized that the current price of Leqembi would place a significant financial burden on Medicare and lead to increased premiums for seniors. 

Sanders called on HHS to utilize its authority to break the patent monopoly on Leqembi if Eisai and Biogen refuse to lower the treatment's price. He also suggested that the Centers for Medicare and Medicaid Services (CMS) could restrict the amount it pays for Leqembi, ensuring that the reimbursement aligns with the drug's benefit.

The Institute for Clinical and Economic Review suggested that Leqembi should be priced between $8,900-$21,500 annually. However, Eisai justified its $26,500 annual price by stating that it is lower than the company estimated the drug's total value of $37,600 per patient.

A study published in JAMA Internal Medicine indicated that Leqembi could cost Medicare $5 billion annually, with individual Medicare patients potentially facing out-of-pocket costs of $6,600 per year, depending on their state of residence and supplemental insurance coverage.

Price Action: BIIB shares are up 0.12% at $305.27 on the last check Thursday.