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Biogen’s Alzheimer's Drug Under SEC & FTC Investigation
Biotech firm takes $164 million charge and says a portion of its Alzheimer’s drug inventory will go bad before it can be sold.
February 4, 2022
Biogen’s (BIIB) controversial Alzheimer’ drug ADUHELM is receiving as much, if not more scrutiny, than it did prior to the FDA granting it accelerated approval in June 2021. In addition to reminding investors of the multiple probes underway in the U.S. House of Representatives and the review by the Department of Health and Human Services’ Inspector General, Biogen disclosed two new probes in its latest 10-K:
“In addition, the Company has received a civil investigative demand from the Federal Trade Commission and an inquiry from the Securities and Exchange Commission seeking information relating to ADUHELM, including healthcare sites, ADUHELM’s approval and ADUHELM’s marketing.”
The annual report also revealed Biogen took a $164 million charge related to ADUHELM inventory and purchase commitments that exceeded demand for the drug. The company, at year’s end, was sitting on approximately $223 million in ADUHELM inventory and acknowledged the drug is selling so poorly it’s likely to go bad on the company’s shelf:
“Upon review of the ADUHELM inventory it was determined that a portion of the inventory will not be consumed prior to product expiration based on our latest estimates of forecasted demand.”
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