Biogen said it would slash the price of Aduhelm (aducanumab), an anti-amyloid beta antibody treatment to treat Alzheimer’s disease, and possibly carry out layoffs in return.

On Monday, the drugmaker said that it would reduce the wholesale price of Aduhelm 100mg/mL by 50 percent, effective Jan. 1, 2022.

For a patient with an average weight of 74 kilograms, the annual Aduhelm cost will go down to $28,200.

“Over the past several months, we have listened to the feedback of our stakeholders, and we are now taking important actions to improve patient access to Aduhelm,” said Michel Vounatsos, CEO of Biogen.

Too many patients are not being offered the choice of Aduhelm due to financial considerations and are thus progressing beyond the point of benefitting from the first treatment to address an underlying pathology of Alzheimer’s disease, he added.

Vounaosos went on to say, “We recognize that this challenge must be addressed in a way that is perceived to be sustainable for the U.S. healthcare system.”

Biogen’s decision is interpreted as a strategy to turn negative circumstances such as criticism on the U.S. drug approval procedure and drug price controversy into favorable ones.

Recently, the U.S. health agency began a review of Medicare coverage of Aduhelm.

The Centers for Medicare & Medicaid Services (CMS) started a process to decide on the criteria for insurance coverage of Aduhelm and other similar antibodies that target amyloid-beta.

The CMS is expected to release a draft decision in January 2022 and a final decision in April. Thus, whether Medicare will cover Aduhelm will be decided in the first half of next year.

Vounatsos said it was a “critical time” for patients with Alzheimer’s disease. The CMS is considering the possibility of coverage of Aduhelm and the entirely new class of Alzheimer’s disease treatments.

“We hope our actions today will facilitate patient access to these innovative Alzheimer’s treatments.”

On the same day, Biogen announced a plan to take cost-reduction measures in 2022, signaling a layoff.

As the company’s multiple sclerosis treatment faces competition with generics and Aduhelm shows poor sales performance, the company will “better align its costs with its revenue base,” it said.

“The cost-reduction measures are estimated to yield approximately $500 million in annualized savings, a significant portion of which will be realized in 2022,” Biogen said.

Part of the savings will be offset by investments in Biogen’s pipeline and strategic initiatives, the company went on to say.

“Further details will be finalized in the coming weeks and will be communicated in the first quarter of 2022.”

Vounatsos said the company had to make a difficult decision to develop drugs for the most devastating neurological diseases.

“We must bring our cost base in-line, so we can continue to invest in future innovation and growth, retain and compete for outstanding talent, and provide acceptable returns to our shareholders,” he said.