Eisai Shares Rise Sharply After U.S. FDA Grants Priority Review for Potential Alzheimer's Drug

By Kosaku Narioka

Eisai Co. shares rose sharply Wednesday morning, following news the U.S. Food and Drug Administration has granted a priority review for the application of lecanemab to treat Alzheimer's disease.

The shares were recently 4.9% higher at 6,110 yen ($44.97) after rising as much as 5.3% earlier.

Eisai and Biogen Inc. said in a statement Wednesday that a phase 3 clinical study for lecanemab is ongoing and that the FDA had agreed that the results of the study could be used to verify the clinical benefit of the drug.

Eisai and Biogen have been jointly working on the development and commercialization of Alzheimer's disease treatments since 2014. Eisai serves as the lead of lecanemab development and regulatory submissions globally, the companies said.

Eisai said in March it would give up its right to share in profits from Aduhelm, the Alzheimer's drug it helped develop with Biogen.

Aduhelm was approved last year in the U.S. in a controversial decision by the FDA.

Analysts had expected the drug would notch billions of dollars in sales. But many doctors questioned whether Aduhelm really worked, and sales lagged behind as Medicare and other health insurers balked at its price tag.

Eisai's shares surged above Y12,000 in June last year following the approval of Aduhelm, but have since given up all their gains.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

July 05, 2022 22:50 ET (02:50 GMT)

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