Benzinga | Aug 12, 2021 07:53AM EDT

Biogen's New Alzheimer's Drug Turned Away By Veterans Affairs

* The Department of Veterans Affairs (VA) has decided not to include the new Alzheimer's drug developed by Biogen Inc (NASDAQ:BIIB) and Eisai Co Ltd (OTC:ESALY), Stat News reported citing a notice issued by the federal agency.

* The department has cited the lack of evidence of "a robust and meaningful clinical benefit" alongside safety concerns.

* Sales reps will not be allowed to promote the drug to VA doctors, either, another agency document shows.

* However, the VA unveiled that it would make exceptions for certain patients and announced requirements for the issuance of coverage, such as recent MRI brain scans, mild Alzheimer's, and prescriptions from providers who specialize in the treatment of dementia.

* The latest hit to the uptake of the drug comes after U.S. Medicare started a review process for national Medicare coverage of Biogen's Aduhelm.

* Price Action: BIIB shares closed at $339.05 on Wednesday.