The U.S. government expects the newly approved Alzheimer’s therapy, Leqembi, to cost $3.5B in 2025 under the Medicare program, significantly higher than the co-developer Eisai's estimate. Spending on the anti-amyloid therapy is projected to reach $4.67 per member per month in 2025, compared to $1.67 in 2024, suggesting about $550M for traditional Medicare and $3.5B for the entire program. Additionally, Eisai has set its 2026 sales forecast for the drug at $1.9B after launching Leqembi with Biogen at an annual list price of $26.5K per patient.
Key Takeaways
- U.S. government projects Leqembi therapy to cost $3.5B in Medicare program in 2025, far exceeding developer's estimates.
- Per member spending on anti-amyloid therapy expected to increase to $4.67 per month in 2025 from $1.67 in 2024.
- Leqembi's annual list price set at $26.5K per patient before discounts or rebates after winning full FDA approval in July 2023.
- Eisai sets 2026 sales forecast for the drug at $1.9B (¥290B) after launching Leqembi with Biogen in the U.S.
- Document from Centers for Medicare & Medicaid Services (CMS) indicates approximately $550M spending for traditional Medicare in 2025.
Analysis
The approval of the Alzheimer's therapy, Leqembi, is anticipated to have significant financial implications. The U.S. government's projected cost of $3.5B in 2025 under the Medicare program far surpasses the co-developer Eisai's estimate. This cost escalation could impact both Medicare spending and the financial outlook for Eisai and Biogen. Given the substantial increase in per member spending from $1.67 in 2024 to $4.67 in 2025, there are concerns about the strain on the healthcare system. The high list price of $26.5K per patient and Eisai's sales forecast of $1.9B for 2026 further underscore the financial complexity and potential long-term consequences for both the healthcare industry and patients.
Did You Know?
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Leqembi's Annual List Price: Leqembi, a newly approved Alzheimer’s therapy, has an annual list price of $26.5K per patient. This price was set after the drug won full FDA approval in July 2023.
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Spending on Anti-Amyloid Therapy: The U.S. government projects that spending on the anti-amyloid therapy, Leqembi, is expected to increase to $4.67 per member per month in 2025 from $1.67 in 2024, signaling a significant rise in expenditure.
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Sales Forecast for Leqembi: Eisai, the co-developer of Leqembi with Biogen, has set the 2026 sales forecast for the drug at $1.9B (¥290B) after launching it in the United States.