By Dhirendra Tripathi

Investing.com – Biogen stock (NASDAQ:) fell 0.7% on Monday after the company said it is cutting prices of its Alzheimer’s drug aduhelm to $28,200 per year for an average weight person.

This cut is approximately half the price of the original price. It comes because sales weren’t as strong due to the high cost of treatment. The treatment was not supported by many hospitals.

On June 7, aduhelm became the first drug in 18 years to secure the U.S. Food and Drug Administration’s nod for treatment of patients suffering from the neurodegenerative disease.

Many stakeholders were critical of the decision. They felt that there was no benefit to this treatment over other alternatives. Additional controversy was fueled by the $56,000 annual cost of the treatment. Medicare covers over 60 million Americans and Biogen’s cost for treating an average-weight person was considered a burden.

At least three members of the FDA’s advisory panel resigned in protest against the regulator’s nod.

With insurance coverage and the availability of diagnostics and specialist centers, around 50,000 people may be eligible for aduhelm treatment in 2022, according to the company.

Biogen stated that it would implement cost reduction measures by 2022 in order to align its revenues with costs. This is due to the continuing entry of generics for multiple sclerosis and the delay in aduhelm.