Benzinga | Jun 28, 2021 02:14PM EDT

Biogen's Costly Alzheimer's Treatment May Face Restricted Medicare Access: WSJ

* The recent approval of Biogen Inc's (NASDAQ:BIIB) high-price Alzheimer's drug is raising questions about who will have access to the $56,000/year treatment that could cost Medicare billions of dollars in coming years.

* Medicare typically pays unconditionally for approved medicines, but to limit the financial hit from Aduhelm, however, Medicare could restrict access, the Wall Street Journal reported.

* Wall Street analysts estimate it could eventually surpass $5 billion in yearly sales, mostly paid by Medicare.

* "Medicare can't afford to treat this as business as usual," said Andy Slavitt, a former Medicare acting administrator and Biden administration senior adviser.

* Meanwhile, Biogen said it wants to limit who gets Aduhelm to Alzheimer's patients in the early stage of the disease with mild symptoms.

* Also, the House Committee on Oversight and Reform announced Friday that it would launch an investigation into the Alzheimer's drug's hotly debated FDA approval and pricing.

* The lawmakers plan to determine what led to the FDA's accelerated approval and Aduhelm's wide label through the investigation.

* RBC Capital also maintained its sector performance rating and lowered its price target from $400 to $354.

* Price Action: BIIB shares are down 2.48% at $339.32 during the market session on the last check Monday.