LLY: Donanemab Rejected by NHS Due to Cost Concerns

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Oct 23, 2024
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Eli Lilly's (LLY, Financial) Alzheimer's drug, Donanemab, will not be available to patients using the UK's National Health Service (NHS). The decision was made by the UK's healthcare regulator, the National Institute for Health and Care Excellence (NICE), due to questions about the drug's cost-effectiveness and minimal benefits relative to its price.

The NICE guidance indicates that the costs and intensive monitoring required for Donanemab outweigh the limited benefits it provides. Clinical trials showed that the drug could delay Alzheimer's progression by 4 to 7 months, but NICE's drug evaluation director stated that its cost-effectiveness is 5 to 6 times higher than what is typically acceptable for NHS resources.

Similarly, the Alzheimer's drug Leqembi, developed by Eisai and Biogen (BIIB), was also rejected by NICE. The reason cited was the same: the benefits do not justify the high costs. Both Donanemab and Leqembi have shown only moderate success in slowing Alzheimer's progression and are currently approved only for early-stage Alzheimer's patients, a small subset of all patients with the disease.

The use of these drugs requires close monitoring due to side effects like brain swelling and bleeding, necessitating regular brain scans. The Alzheimer's Society in London expressed disappointment in NICE's decision, hoping for advancements in dementia treatment akin to those seen in cancer therapies, which have become more effective, safer, and less costly over time.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.