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Around the nation: New Alzheimer's drug projected to cost Medicare $3.5B


CMS estimates that Eisai and Biogen's new Alzheimer's drug Leqembi will cost Medicare $3.5 billion in 2025, in today's bite-sized hospital and health industry news from California and Maryland. 

  • California: Kaiser Permanente recently launched a Food is Medicine Center of Excellence, which includes a new research hub to analyze the outcomes of different food-is-medicine programs. "As a central clearinghouse for all things related to Food Is Medicine — including information, training, job aids, and FAQs — the Center of Excellence will support frontline clinicians and care teams with the highest-standard of information, programs and tools for treating and preventing diet-related diseases with food-based interventions to support the food and nutrition security of our patients," said Pam Schwartz, executive director for community health at Kaiser Permanente. "This includes expanding clinical nutrition training for health professionals, medical curricula and nutrition fellowships." HHS Secretary Xavier Becerra also endorsed the new center, saying that the Biden administration "will continue to raise public awareness that food is medicine to ensure every American ultimately has access to healthy food." (DeSilva, Modern Healthcare, 4/11)
  • Maryland: CMS estimates that Eisai and Biogen's new Alzheimer's drug Leqembi will cost the traditional Medicare program around $550 million in 2024 and the overall program $3.5 billion in 2025. Last July, FDA approved Leqembi after clinical trials showed that the drug slowed cognitive decline in Alzheimer's patients by 27%. The drug has an annual list price of $26,500, and based on Medicare's cost estimate, over 125,000 Medicare patients could be receiving the treatment by 2025. Notably, CMS' spending estimates are significantly higher than Eisai's own sales estimates, which have been projected to be around $1.3 billion from April 2026 to March 2027. "I think CMS' estimates demonstrate an incredible demand for Alzheimer's treatments and possibly suggest broader use than I think was originally conceived," said Ameet Sarpatwari, an assistant professor of medicine at Harvard Medical School. Sarpatwari also emphasized "the need for realistic expectations for what this medication is going to do" to ensure that patients do not have "false hope" that it will cure their Alzheimer's. (Herman/Zhang, STAT+, 4/11)
  • Maryland: FDA recently granted emergency use authorization for Labcorp's at-home PCR sample collection kit for mpox. Brian Caveney, Labcorp's chief medical and scientific officer, said the authorization allows the company to play a key role in detecting and managing mpox early on. "The collection kit reflects our ongoing commitment to providing critical diagnostic tools to physicians and accessible and convenient testing options to patients," he said. Providers can order the kit for patients with suspected cases of mpox, and Labcorp will send it to their homes. After patients collect a sample, they will send it to Labcorp-authorized labs for testing, and the results will be delivered to the original prescribing physician. Patients will also be able to access their results through Labcorp's patient portal. According to CDC, there have been 664 reported cases of mpox as of the week ending March 30, which is more than double the number of cases reported the same time last year. (Schnirring, CIDRAP, 4/10)

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