How was Aduhelm priced and why was that controversial?
Biogen launched at $56,000 — when ICER said $3,000–$8,400 would be cost-effective — because internal documents show it saw Aduhelm as an unprecedented financial opportunity, planning $3.3 billion in marketing spend from 2020 to 2024.
Biogen set a list price of $56,000 a year, well above the $10,000 to $30,000 many industry watchers had expected. ICER said a cost-effective price would be $3,000 to $8,400 a year. The congressional investigation concluded Biogen set an unjustifiably high price to "make history", seeing the drug as an unprecedented financial opportunity, and found Biogen knew from early pricing models that some Medicare patients would struggle to afford it. In December 2021, facing weak uptake and payer resistance, Biogen cut the price to $28,200, a 50.3% reduction and an unusual move for a drugmaker. Even the reduced price was well above ICER's recommended range of $2,500 to $8,000. Biogen simultaneously announced $500 million in cost cuts.