Biogen ($BIIB) Aduhelm Coverage and Pricing Case

The court has ruled on whether the plaintiffs are certified as a class.

D. Massachusetts

Court

1:22-cv-10200

Case number

06/07/2021

Class period Start

07/12/2021

Class period End

$BIIB investors filed a claim against Biogen for allegedly telling the market Aduhelm had stronger Medicare coverage and payer support than it actually did.
After Biogen signaled it may revisit Aduhelm’s price and public officials warned FDA approval did not guarantee Medicare coverage, $BIIB fell 6.1% on June 24, 2021.
$BIIB investors can join this case to be notified about potential recovery.
Case Details:

Between June 7, 2021 and September 8, 2021, Biogen told investors Aduhelm was ready for a strong launch after FDA approval. Executives emphasized that Biogen had engaged with payers on pricing, that Medicare coverage was automatically presumed, and that regional Medicare contractors and Medicare Advantage plans would provide coverage during CMS’s review.

However, during this period, investors allege Aduhelm faced serious reimbursement and pricing obstacles that threatened sales from the start. Biogen allegedly failed to disclose that it had not actually discussed Aduhelm’s $56,000 annual price with payers, that the FDA approval did not guarantee Medicare coverage, and CMS was likely to review and potentially restrict coverage; and regional Medicare contractors and Medicare Advantage plans could delay, limit, or refuse coverage while that review was pending.

Then, on June 24, 2021, the company said it was addressing Aduhelm’s price, healthcare-budget impact, and patient access as officials and news reports highlighted Medicare coverage uncertainty. $BIIB fell 6.1%, closing at $349.16. 

Additional revelations followed on July 15, 2021, including that major insurers were waiting for CMS guidance and a former CMS administrator said coverage was likely to remain limited until CMS finished its review. 

By September 9, 2021, after Biogen said the launch was slower than expected because sites were waiting for reimbursement clarity, shares had dropped to $300.15, representing a total decline of 19.3% over the correction period.

Based on these events, $BIIB investors filed a claim against Biogen, alleging the company:
It overstated Aduhelm’s launch readiness.
It told investors Medicare coverage was effectively automatic even though coverage could be reviewed, delayed, or restricted.
It hid pricing and reimbursement problems that made Aduhelm far less commercially ready than investors were led to believe.
Investors argue Biogen misled the market about Aduhelm’s reimbursement and pricing outlook, causing losses when the truth emerged.

Case Type

US Securities Class Action

Case Status

Class Certification result

Alleged Offence

Misleading Statements,

Fraud,

Failure to Disclose,

Omissions

Suspected Party

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

06/24/2021

Plaintiffs

Oklahoma Firefighters Pension and Retirement System

Attorneys

Block & Leviton LLP

Defendants

Michel Vounatsos; Alisha Alaimo

Administrator

Strategic Claims Services

Trades matching type

FIFO

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