Biogen/Eisai's Popular Alzheimer's Drug Leqembi Is Seeing Slow Adoption - Here's Why
Portfolio Pulse from Vandana Singh
Leqembi, an Alzheimer's drug developed by Eisai Limited (OTC:ESALY) and Biogen Inc (NASDAQ:BIIB), is experiencing slow adoption nine months post-U.S. launch due to skepticism among doctors about its efficacy, costs, and risks. Despite FDA approval and showing a 27% slowdown in cognition decline, less than half of U.S. neurologists recommend it, citing limited patient benefit and significant risks, including potential brain swelling and bleeding. The drug's high cost and the need for regular MRIs and bi-monthly infusions add to the concerns. Eisai and Biogen aim to increase their sales force by 30% to reach 100,000 patients by 2026, despite only a couple thousand patients starting treatment as of January.

April 24, 2024 | 6:23 pm
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NEUTRAL IMPACT
Eisai Limited faces skepticism from doctors about Leqembi's efficacy and safety, impacting its adoption. Despite challenges, Eisai and Biogen aim for 100,000 patients by 2026.
Eisai's involvement in Leqembi's development and the strategic push to increase adoption despite skepticism could have a neutral short-term impact on its stock. The ambitious patient target shows commitment but faces significant adoption barriers.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Biogen Inc's Leqembi, co-developed with Eisai, sees slow adoption due to concerns over efficacy, costs, and risks. Despite this, Biogen reported a near triple increase in Leqembi sales in Q1, with shares up 3.36%.
Biogen's stock price increase and reported sales growth for Leqembi indicate a positive short-term impact, despite the broader concerns over the drug's adoption and efficacy. The increase in sales and the stock price movement suggest investor optimism.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90