Tokyo: Japan is expected to lower the price of lecanemab, an Alzheimer's drug developed by Japanese drugmaker Eisai Co. and Biogen Inc. of the United States, following a health ministry panel's report citing its low cost-effectiveness. The decision comes as the ministry considers the economic implications of the drug, currently priced at about 3 million yen per patient annually.

According to Philippines News Agency, the health ministry is anticipated to reduce the official price of lecanemab by up to 15 percent. This anticipated reduction follows an assessment report submitted to the Central Social Insurance Medical Council, which advises the health minister. The report highlighted lecanemab's lower cost-effectiveness compared to traditional Alzheimer's treatments like donepezil.

The final decision on the price cut will be made after the council evaluates lecanemab's impact on reducing public nursing care service costs. Lecanemab is noted for its ability to remove abnormal proteins from patients' brains, potentially slowing disease progression. However, with the rapidly aging population, there is concern about the financial strain expensive treatments could place on public health insurance systems.

Eisai has contested the ministry panel's findings, asserting that the cost-effectiveness of lecanemab has been underestimated. The company emphasized that different analytical models were used in the assessments, with Eisai claiming its analysis provides a more accurate reflection of the drug's value.