RTTNews | Sep 22, 2021 04:52PM EDT

16:52 Wednesday, September 22, 2021 (RTTNews.com) - Biotechnology company Biogen Inc. (BIIB) is considering drastic cost-cutting measures like layoffs, following the poor response to its Alzheimer drug Aduhelm, which was approved by the U.S Food and Drug Administration in June this year, reports said. The company could suffer a $20 billion loss with the slow usage of its Alzheimer drug. According to sources, the financial situation is so bad that the company would be trimming its employees and also looking at different cost-cutting measures.

The recent drop in sales is the latest development in the company's effort to sell the first approved Alzheimer's therapy since 2003, as there is yet to be sufficient demand for the drug. Biogen is selling the drug at an annual price of $56,000.

Reports said that the company was trying hard to sell its intravenous therapy but as of the first week of September, only more than 100 patients had received the treatment. This number, is far below what industry experts had anticipated.

The FDA gave approval for Aduhelm or aducanumab, in June, despite there being mixed results. This had led to clashes in the medical community and two members who voted against the Bill resigned from their positions

Despite warnings from the company on near-term difficulties, analysts expect sales of $9 billion in 2027 from the biotechnology company.

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