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When the US FDA granted full approval of Biogen (NASDAQ:BIIB) and Eisai’s (OTCPK:ESAIY) Alzheimer’s therapy Leqembi (lecanemab), it was a boon to the 2 firms. It meant that the Facilities for Medicare and Medicaid Providers (CMS) would cowl the drug.
Sufferers additionally benefitted as Medicare would foot many of the invoice for the price of the drug, which has an inventory worth of $16.5K. And as a consequence of necessities for taking the medication, it additionally meant that different firms — notably within the diagnostics and imaging house — may earn a living off of Leqembi uptake.
Whereas the total approval may assist restore a few of Biogen (BIIB) and Eisai’s (OTCPK:ESALF) broken repute after its different authorised Alzheimer’s med, Aduhelm (aducanumab), failed to realize traction, getting individuals take the drug is, properly, a course of.
A affected person first has to have a confirmed prognosis of delicate cognitive impairment associated to Alzheimer’s or delicate dementia. These with extra extreme types of the illness usually are not eligible for therapy.
Subsequent, a affected person should get both a amyloid PET scan or spinal faucet to substantiate the presence of amyloid, a sticky protein within the mind believed to be related to Alzheimer’s. Here is the issue. Medicare solely covers one among these PET scans per lifetime and solely as a part of a trial. Out-of-pocket prices for a PET scan can common $3K or extra, based on the Alzheimer’s Affiliation.
The imaging price challenge might go away quickly if a proposal from CMS to eradicate the restriction on PET scans is eradicated. However even whether it is, a Leqembi consumer will nonetheless must have common MRI scans as a result of mind hemorrhaging and bleeding seen in some sufferers in scientific trials.
Whereas these hurdles is likely to be a turnoff for some, it has the potential to profit different firms within the course of, resembling those that present diagnostics and imaging methods vital for PET and MRI scans, and radiology facilities the place they are going to be performed.
Here is a have a look at among the firms that would reap their very own dividends courtesy of Leqembi.
GE HealthCare Applied sciences (NASDAQ:GEHC) is a healthcare tools powerhouse, and one among its largest segments is diagnostic machines and provides. The corporate’s line of Omni Legend and Discovery CT/PET machines are already current in lots of radiology suites. Ought to demand for Leqembi take off, further orders for these machines are nearly sure to rise.
GE Healthcare additionally gives chemistry options and cyclotrons to help tracer manufacturing that’s used within the analysis of scans.
Siemens Healthineers (OTCPK:SEMHF)(OTCPK:SMMNY) is one other diagnostics and imaging behemoth. Its Biograph household of CT/PET scanners is a direct competitor to GE HealthCare (GEHC).
As a result of a spinal faucet to gather cerebrospinal fluid will also be used to detect the presence of amyloid within the mind, Roche’s (OTCQX:RHHBY) diagnostics section markets a take a look at that may detect the presence of amyloid from CSF.
RadNet (NASDAQ:RDNT) is among the largest suppliers of diagnostic imaging companies facilities within the nation with 357 facilities in seven states. It’s the place a affected person would get a amyloid pet scan or one of many common MRI scans that Leqembi therapy requires.
Diagnostic companies suppliers Quest Diagnostics (DGX) and Laboratory Company of America (LH) may additionally see elevated testing ensuing from Leqembi. Labeling recommends that docs take a look at potential sufferers for the presence of the APOE4 gene, which is related to the next danger of mind hemorrhaging and bleeding seen with the drug.
