Japan Approves Reduction in Cost for Alzheimer's Medication Lecanemab
In a significant move, the price of Lecanemab, a drug used to treat dementia caused by Alzheimer's disease, will be reduced by 15% in Japan, effective from November 1, 2025. This decision has been made following an assessment by the Central Social Insurance Medical Council regarding the drug's cost-effectiveness for treating Alzheimer's disease.
Lecanemab is co-developed by Japanese drugmaker Eisai Co. and U.S. industry peer Biogen Inc. The medication is innovative as it removes abnormal proteins that accumulate in patients' brains, slowing the progression of Alzheimer's disease.
Under Japan’s system, high-priced or large-market drugs are subject to a system that adjusts their prices based on cost-effectiveness evaluations. This system aims to balance innovation incentives with affordability and value for the healthcare system.
Specifically, the price per 500-milligram bottle of Lecanemab will be lowered to 97,277 yen. This reduction will result in an annual cost reduction for an average 50-kilogram patient from about 2.98 million yen to about 2.53 million yen.
Additional economic evaluations suggest that Lecanemab's market price in Japan (and possibly other countries) has generally exceeded the estimated value-based price aligned with willingness-to-pay thresholds, reinforcing the rationale for such price adjustments.
It is important to note that this price reduction only applies to Japan. The decision is based on the drug's low cost-effectiveness for treating dementia caused by Alzheimer's disease, as assessed by the Central Social Insurance Medical Council. The price reduction does not apply outside of Japan.
This move by the Japanese health ministry panel is a testament to their commitment to making innovative yet affordable treatments accessible to patients in need. The reduction in the price of Lecanemab is expected to provide much-needed relief to patients and their families dealing with the financial burden of treating Alzheimer's disease.
[1] Central Social Insurance Medical Council Assessment Report on Lecanemab [2] Eisai Co. and Biogen Inc. Press Release on Lecanemab Price Reduction in Japan [3] Japanese Health Ministry Announcement on Lecanemab Price Reduction [4] Economic Evaluation of Lecanemab in Japan [5] Global Value-Based Pricing Thresholds for Alzheimer's Disease Treatments
- The price reduction of Lecanemab, a medication used for Alzheimer's disease, will benefit patients and their families, as the reduced cost may provide relief from the financial burden associated with health-and-wellness issues like neurological disorders.
- The Central Social Insurance Medical Council, in their assessment report on Lecanemab, determined that while the drug is innovative, it has a low cost-effectiveness for treating medical-conditions such as dementia caused by Alzheimer's disease.
- Photos of patients with Alzheimer's disease may serve as visual aids in the discussion of therapies and treatments like Lecanemab, thereby emphasizing the importance of science and innovation in addressing health-and-wellness challenges faced by individuals with neurological disorders such as Alzheimer's disease.
