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Biogen chief to step down after Alzheimer’s drug flops

Biogen CEO Michel Wentos will step down following the disastrous launch of the company’s Alzheimer’s drug Alzheimer’s.

The American biotech group announced on Tuesday that it has begun looking for a successor and will dismantle its global sales infrastructure for Adolam in a move that will save $ 500 million in annual costs.

The executive shake-up comes in the wake of the failed launch of the Alzheimer’s drug, which became the first treatment last year Confirmed By U.S. regulators to fight the disease in nearly two decades.

Aduhelm is the first in a class of new drugs that seek to slow the progression of Alzheimer’s by removing the accumulation of a sticky layer called beta amyloid in the brain. But approval of the treatment by the U.S. Food and Drug Administration in June was activated division In the medical community, when critics claim there is little conclusive evidence that removal of this plaque provides a clinical benefit.

Last month, U.S. government-funded health insurance plans imposed Severe restrictions on Adulam funding – which costs $ 28,000 a year – for patients during an unprecedented course of approved care. The decision could cost Biogen billions of dollars in sales of the drug, which some analysts expected could yield more than $ 10 billion in annual sales.

Stelios Papadopoulos, chairman of Biogen, said Vounatsos, who had led the company for just over five years, would remain in place until an heir was found.

“This is the right time to move on to a new leader who will build the next episode of Biogen on the strong foundation that exists today,” he added.

Biogen is facing a challenging time, as some of its other top-notch revenue-generating drugs face generic competition and it has relied on Adulam to boost growth.

The company has already outlined $ 500 million in cost cuts and announced in November the departure of Al Sandruck, the company’s former head of research, who led the development work on Adullam.

On Tuesday, Eugene announced it had recorded $ 275 million in inventory related to ohmic and reported net income of $ 535 million or $ 3.62 per share in the first quarter, which was below analysts’ expectations of $ 4.34 per share, according to FactSet.

Michael A., an analyst at Jeffries, said investors will see the changes as a necessary move to change the negative sentiment around Biogen and adjust long-term spending in the group.

“We assume it will be difficult to find a new CEO quickly. . . Our assumption is nothing until the end of the year, ”said Yee, who added that this may change if clinical trials of a separate drug for Alzheimer’s developed by Biogen and the Japanese group Eisai turn out to be positive.

Biogen chief to step down after Alzheimer’s drug flops Source link Biogen chief to step down after Alzheimer’s drug flops

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