Biogen‘s Alzheimer treatment triggers debate regarding its real-world benefits

Biogen (NASDAQ: BIIB) launched in June a new Alzheimer's disease drug but its uptake so far has been slow, leading one notable Wall Street analyst to recommend a cautious approach towards the stock.

Cost of Biogen’s Alzheimer's treatment criticized

There is a debate currently regarding the high cost of the drug, which is $56,000, and whether it is effective in Alzheimer's treatment despite encouraging trial results. There is also concern about whether it is worth the money, but considering AD is a devastating disease, people will want access to it at any cost. Wedbush’s Laura Chico delved into the issue on CNBC's "Worldwide Exchange," noting that there is a lot of uncertainty about whether the drug's cost can translate into real-world benefits. Laura said:

Laura expects the problem to persist going forward, and translating the treatment cost into real-world benefit will be challenging. According to the Alzheimer's Association of Kaiser, AD has a significant impact on society, estimated to be hundreds of billions of dollars. Unfortunately, making a decision will be challenging for families given the high cost of the Biogen treatment.  As a result, there should be a coverage determination that will make the drug accessible. Laura stated:

Wedbush analyst has a neutral rating on Biogen

The Wedbush analyst is cautious in Biogen stock and has a "Neutral" rating because the controversy is unlikely to end soon.  She explained:

According to Laura, the controversy coupled with growing generic competition for the company’s flagship drug Tacfidera and the competitive conditions in the SMA sector will be challenging for Biogen.