• CEO Michel Vounatsos will remain in his role until a successor is appointed
Biogen Inc (NASDAQ: BIIB) said on Tuesday that Chief Executive Michel Vounatsos will step down from his position amid company’s decision of pulling back the controversial Alzheimer's drug Aduhelm.
The Centers for Medicare and Medicaid Services last month restricted the use of the drug to patients in clinical trials.
“We are disappointed by the recent Medicare coverage decision for ADUHELM,” said Vounatsos.
Aduhelm is the first drug approved by the Food and Drug Administration which slows cognitive decline in people suffering with Alzheimer’s. The approval of the drug has been criticized by many experts due to lack of evidence showing accuracy of the drug.
Biogen said it will eliminate commercial infrastructure related to Aduhelm and also plans for more cost cuts.
The company said that Vounatsos, who has been the CEO since 2016, will remain in his role until a successor is appointed.
Quarterly results
Biogen said the Alzheimer’s drug brought in just $2.8 million in revenue in the first three months of this year.
The company reported adjusted earnings per share came of $3.62, in line with Wall Street expectations. Biogen also reaffirmed its outlook for adjusted profit of $14.2 to $16 per share for 2022.
Picture Credits: Reuters
ALSO READ: