Biogen’s C.E.O. will step down following disastrous launch of Alzheimer’s drug.

Biogen mentioned on Tuesday that it’ll substitute its chief government and successfully hand over on advertising a high-profile Alzheimer’s drug that has been a business failure since its controversial approval practically a 12 months in the past.

Michel Vounatsos, who has led the drug maker for over 5 years and presided over the approval and launch of the drug, often known as Aduhelm, will stay in his position till a successor is appointed, Biogen mentioned.

Biogen mentioned it deliberate to “considerably remove” its spending on the drug after Medicare finalized a call final month to sharply restrict its protection of Aduhelm.

The Meals and Drug Administration accepted Aduhelm in June. It was the primary new therapy for Alzheimer’s in practically twenty years. It had been extensively anticipated to grow to be a blockbuster drug inside a number of years, producing billions of {dollars} yearly for Biogen. However the approval was overshadowed by concern concerning the drug’s unproven advantages and critical security dangers, in addition to concerning the course of by which the F.D.A. had greenlighted it.

Medical doctors, insurers and sufferers and their households haven’t embraced Aduhelm. On Tuesday, Biogen reported that the drug introduced in simply $2.8 million in income within the first three months of this 12 months, after producing solely $3 million in 2021. Biogen initially priced the drug at $56,000 per 12 months for the typical affected person earlier than halving the fee in response to weak early gross sales.

Aduhelm had been anticipated to pressure authorities well being budgets. However Medicare determined to pay for the drug just for individuals who obtain it as contributors in a medical trial. Final month, Biogen mentioned it will withdraw its utility to market the drug within the European Union after drug reviewers indicated that it was unlikely to win approval.