FT : Alzheimer’s drug approved by UK regulator but too costly for NHS

Alzheimer’s drug approved by UK regulator but too costly for NHS
Spending watchdog declines to give green light to lecanemab for patients in England

A drug that can slow decline in patients with early stage Alzheimer’s disease will not be available to NHS patients in England, the healthcare spending watchdog has said, despite the UK medicines regulator approving it.

The National Institute for Health and Care Excellence on Thursday said lecanemab would not be prescribed by the health service because its benefits were “just too small to justify the significant cost to the NHS”.

The announcement by Nice came as the Medicines and Healthcare products Regulatory Agency, which assesses the safety of drugs, approved lecanemab, making it the first dementia treatment to be licensed in more than 20 years.

During clinical trials, lecanemab slowed the progression of Alzheimer’s disease by four to six months in people in the early stages of the condition by targeting the protein beta-amyloid in the brain. 

In people with Alzheimer’s, the most common cause of dementia, abnormal levels of the protein clump together to form plaques that disrupt brain function. Dementia is the leading cause of death in the UK.

But the treatment has proved contentious, both because of a significant risk of side effects and the cost and complexity of administering it. The drug is given through fortnightly infusions in hospital and patients must be intensively monitored for possible adverse effects. 

To be effective, it must be given early in the course of the disease. But only about 2 per cent of UK patients have access to diagnostics such as a PET brain scan or lumbar puncture needed to be judged eligible to receive the drug.

Hilary Evans-Newton, chief executive of Alzheimer’s Research UK, said Nice’s decision meant lecanemab would only be available to those who could pay privately, which was “deeply disappointing”.

She said she hoped further talks between Nice, the manufacturer Eisai and the NHS might offer a way forward, and that the charity had written to health secretary Wes Streeting “urging him to act”.

Professor Jonathan Benger, Nice chief medical officer, told journalists that in addition to the cost of the drug, priced at more than £20,000 a year in the US, the NHS faced over £500 in costs for each patient visit to receive an infusion. Patients received the drug every two weeks for 18 months in clinical trials.

But at a briefing on Thursday, Daniel Thomas, head of policy at Alzheimer’s Research, said the NHS needed investment in diagnostics and staff to be ready to deliver new treatments.

Donanemab, a separate Alzheimer’s treatment in development by US pharmaceuticals group Eli Lilly which, like lecanemab, targets amyloid plaque in the brain, would likely face the “same hurdles”, he added. 

Professor Sir Stephen Powis, NHS England national medical director, said lecanemab was the first disease-modifying treatment for Alzheimer’s to be approved for UK use.

He added that health service staff were “looking ahead to 27 other drugs which are currently in advanced clinical trials that could be potentially approved by 2030”.

Announcing regulatory approval of the drug, Julian Beach, MHRA interim executive director for healthcare quality and access, said “a controlled post-authorisation safety study” would be carried out to continue to assess its risks and benefits.

Last year lecanemab was approved by the Food and Drug Administration, the US regulator. But in July the European Medicines Agency declined to approve it on the grounds that the benefits were small and the drug was associated with adverse side effects such as brain swelling.

Eisai and Biogen, the two companies marketing lecanemab, welcomed the MHRA approval.

Eisai said it was “working collaboratively” with Nice, the Scottish Medicines Consortium — which judges value for money north of the border and has not yet made a decision — and the NHS “to make this medicine available to eligible people living with early AD in Great Britain as soon as possible”.

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • ZUO +7.5%, WOLF +7.4%, RLGT +6.5%, BILI +4.8%, PARA +3.3%, ZM +3%, DB +2.4%, SNPS +2.3%, A +2.2%, WB +1.9%, IOT +1%, BIIB +0.9%, YOTA +0.8%
  • Gapping down:
    • CSIQ -11.5%, URBN -11%, SNOW -9.4%, LU -8.8%, AAP -7.9%, AEG -5.7%, BWLP -4.9%, NTES -4.5%, SCHW -4.1%, TD -3.8%, CTKB -3.3%, LQDA -2.7%, ALVO -2%, SSRM -2%, RDN -1.8%, CAAP -1.5%, SIGA -1.1%, AGX -1.1%, CNI -1.1%, CP -1%

>>> US Peloton beats by $0.08, beats on revs; guides Q1 revs below consensus; gu

Peloton beats by $0.08, beats on revs; guides Q1 revs below consensus; guides FY25 revs below consensus (3.36)
  • Reports Q4 (Jun) loss of $0.08 per share, $0.08 better than the FactSet Consensus of ($0.16); revenues rose 0.3% year/year to $644 mln vs the $633 mln FactSet Consensus.
  • Members decreased 2% yr/yr to 6.4 mln.
  • Ending Paid Connected Fitness Subscriptions decreased 1% to 2.981 mln.
  • In Q4 PTON achieved $70 million of Adjusted EBITDA, up $105 million Y/Y and up $64 million Q/Q. PTON also achieved $26 million of Free Cash Flow, up $100 million Y/Y and tripling in comparison to last quarter. PTON says it is making significant progress toward right sizing our cost structure and we'll continue to optimize expenses.
  • Co issues downside guidance for Q1, sees Q1 revs of $560-$580 mln vs. $588.91 mln FactSet Consensus. Sees Ending Paid Connected Fitness Subscriptions of 2.88-2.89 mln.
  • Co issues downside guidance for FY25, sees FY25 revs of $2.40-$2.50 bln vs. $2.69 bln FactSet Consensus. Sees Ending Paid Connected Fitness Subscriptions of 2.68-2.75 mln.

>>> Europe : Brokers Upgrades & Downgrades - 22nd of August 2024 V2(+)

>>> Up
* Admiral Raised to Hold at Jefferies; PT 3,025 pence
* CBrain Raised to Hold at ABG; PT 225 kroner
* Deceuninck Raised to Buy at KBC Securities; PT 4.20 euros (+)
* Glenveagh Raised to Buy at Jefferies; PT 2.25 euros
* MOL Raised to Buy at Citi; PT 3,400 forint
* Scatec Raised to Buy at Norne Securities; PT 92 kroner
* Unilever Raised to Buy at BofA (+)

>>> Down
* Allgeier Cut to Neutral at Oddo BHF; PT 18 euros
* DocMorris AG Cut to Hold at Deutsche Bank; PT 45 Swiss francs (+)
* Fifax Abp Cut to Sell at Inderes; PT 17 euro cents

>>> Initiation
* IPC Rated New Market Perform at BMO; PT 165.19 kronor
* Novonesis Reinstated Buy at Nordea; PT 500 kroner

>>> Call
* *FLUTTER US SHARES ARE NEW OVERWEIGHT AT MORGAN STANLEY; PT $247
* Unilever Double-Upgraded at BofA on Good Ice Cream Break-up

>>> Stoxx 600 Pre-Market Indications

  • CTS Eventim (EVD TH) +4.4%
    • CTS Eventim 1H Revenue Beats Estimates
  • Deutsche Bank (DBK TH) +2.7%
    • Deutsche Bank Sees €430 Million Gain on Postbank Progress (1)
  • DSV (DS81 TH) -1.1%
    • *DSV, VOLVO SIGN AGREEMENT 300 ELECTRIC TRUCKS
  • Aixtron (AIXA TH) -1.8%
  • Aegon (J060 TH) -4%
    • Aegon 1H Operating Profit EU750M Vs. EU818M Y/y

>>> TradeGate Pre-Market Indications

DAX:
  • Deutsche Bank (DBK TH) +2.5%
    • Deutsche Bank Sees €430 Million Gain on Postbank Progress
MDAX:
  • HelloFresh (HFG TH) +5%
  • CTS Eventim (EVD TH) +4.9%
    • CTS Eventim 1H Revenue Beats Estimates
SDAX:
  • Sixt (SIX2 TH) +1.5%
  • Borussia Dortmund (BVB TH) +1.4%

>>> What to look at today - 22nd of August 2024

Stocks in Asia wobbled ahead of key events from the Federal Reserve and the Bank of Japan that will help define the global rates trajectory.   The MSCI Asia Pacific Index pared a 0.4% advance as benchmarks in Japan and Hong Kong came off session highs and Chinese equities fell. US stock futures slipped in Asian trading, after the S&P 500 and Nasdaq 100 indexes posted modest gains on further signs the Fed will cut interest rates.  The moves point to a degree of caution ahead of Chair Jerome Powell’s speech Friday at the Jackson Hole economic symposium. US rate-cut wagers had built up in recent sessions, with the latest dovish signal coming from Fed minutes that showed several officials acknowledged a plausible case for cutting rates. Heading into the Jackson Hole event, “risk-taking may be capped for fears of any disappointment from the Fed chair,” said Jun Rong Yeap, a market strategist at IG Asia Pte. “Markets are in this waiting phase, with the US dollar seeking to stabilize from a recent sell-off.”  A Bloomberg gauge of dollar’s strength advanced less than 0.1% after a recent bout of weakness. MSCI’s EM currency index fell for the second day. The yen was set for a fifth straight session of gains.  BOJ Governor Kazuo Ueda will face intense market scrutiny on Friday when he speaks to lawmakers, after the central bank’s hawkish signals contributed to the global market turmoil earlier this month. US government debt was little changed in Asian trading after gains for short-dated Treasuries in the prior session sent two-year yields falling almost 10 basis points before paring the move. Traders were once again pricing in more than 1 percentage point worth of Fed easing by the end of 2024, starting next month.  Elsewhere, Bank of Korea Governor Rhee Chang-yong said a few members were open to a rate cut in the next three months, after keeping borrowing costs steady.   Xiaomi Corp.’s shares rallied more than 8% following better-than-expected second-quarter results, supporting a gauge of Chinese tech stocks. That followed a slew of mixed earnings from heavyweights including Alibaba Group Holding Ltd.  A likely revision to US job growth added further evidence for traders to expect a September rate cut. The number of workers on payrolls will probably be revised down by 818,000 for the 12 months through March — or around 68,000 less each month — according to the Bureau of Labor Statistics’ preliminary benchmark revision. It was the largest downward revision since 2009. In commodities, oil edged lower as concerns about a US slowdown outweighed the lift from falling inventories. Gold also saw selling after trading near a record high Wednesday on the expectations of a Fed rate cut. US After Hours WOLF +10.5%, ZUO +5.2%, ZM +2.6%, A +1.8%, SNPS +1.3% higher on earnings; SNOW -8.1%, URBN -3.6% lower on earnings.

Nikkei +0.44% Hang Seng +0.66% CSI -0.10% Shanghai -0.11% Shenzen -0.55%

Eur$ 1.1143 CNH 7.1289 CNY 7.1325 JPY 145.10 GBP 1.3085 CHF 0.8513 RUB 91.5000 TRY 33.9269 WTI$ 71.75 -0.25% Gold 2,501 -0.43% BTC 60,730 -0.84% ETH 2,623 -0.30%

S&P -0.07% Nasdaq -0.06% EuroStoxx -0.12% FTSE -0.08% Dax -0.05% SMI -0.06%

Macro :
- Fed Minutes Show Several Saw Case for Cutting Rates in July
- Four Bodies Pulled From Mike Lynch Yacht That Sunk by Sicily

Keep an eye on :
- AGN NA : Aegon 1H Operating Profit EU750M Vs. EU818M Y/y
- ALFEN NA : Alfen 1H Adjusted Ebitda Beats Estimates
- BAVA DC : Bavarian Nordic 2Q Revenue Beats Estimates
- BWLPG NO : BW LPG 2Q Net Income Beats Estimates
- CSRN3 BZ : Neoenergia Buys 6.37% of Cosern’s Capital Stock in Tender Offer
- ATD CN : Seven & i Shares Fall 3.2% on Report Buyout Approval Needed
- EVD GY : CTS Eventim 1H Revenue Beats Estimates
- DBK GY : Deutsche Bank Settled With Over 80 Plaintiffs in Postbank Case
- EQT SS : EQT Sold About 11m shares in Storytel
- GALP PL : Portugal’s ENSE Says Gasoline Consumption Rose 3.5% in July
- GN DC : GN Store Nord 2Q Revenue Meets Estimates
- GUBBRA DC : Gubra Raises FY Outlook; Now Sees CRO Business Growth of 23-28%
- HAS LN : Hays FY Operating Profit Misses Estimates
- JD/ LN : JD Sports Sees Earnings Meeting Guidance
- KIN BB : Kinepolis 1H Revenue Misses Estimates
- KOG NO : Australia, Kongsberg to Build Long-Range Missiles in Newcastle
- KUD SW : Kudelski 1H Ebitda Loss $11.7M
- PARA US : Bronfman Raises Offer for Paramount Global to $6 Billion
- ROG SW : Roche Obesity Drugs Face EASD Spotlight, Devil in the Details
- ROCKB DC : Rockwool 2Q Ebitda Beats Estimates
- SFZN SW : Siegfried 1H Sales Beats Estimates
- STORYB SS : EQT Sold About 11m shares in Storytel
- SPSN SW : Swiss Prime Sees FY Vacancy Rate 3.8%, Saw Below 4%
- SREN SW : Swiss Re Profit Beats Estimates on Lower Catastrophe Claims
- TGYM IM : Glasenberg Now Technogym’s Third-Biggest Shareholder: Corriere
- TSLA US : Xiaomi Will Swallow EV Losses to Join Tesla in the Big Leagues
- UQA AV : Uniqa 1H Pretax Profit EU277.5M Vs. EU233.2M Y/y
- VLK NA : Van Lanschot Kempen 1H Underlying Profit EU78.4M Vs. EU54.7M Y/y
- DG FP : VINCI: VINCI Energies Buys the German Group Fernao
- WBD IM : Webuild Lane Unit Wins $466m Contract for Hudson River
- ZUGN SW : Zug Estates 1H Vacancy Rate 0.7%

>>> Europe : Brokers Upgrades & Downgrades - 22nd of August 2024

>>> Up
* Admiral Raised to Hold at Jefferies; PT 3,025 pence
* CBrain Raised to Hold at ABG; PT 225 kroner
* Glenveagh Raised to Buy at Jefferies; PT 2.25 euros
* MOL Raised to Buy at Citi; PT 3,400 forint
* Scatec Raised to Buy at Norne Securities; PT 92 kroner

>>> Down
* Allgeier Cut to Neutral at Oddo BHF; PT 18 euros
* Fifax Abp Cut to Sell at Inderes; PT 17 euro cents

>>> Initiation
* IPC Rated New Market Perform at BMO; PT 165.19 kronor
* Novonesis Reinstated Buy at Nordea; PT 500 kroner

>>> Call
* *FLUTTER US SHARES ARE NEW OVERWEIGHT AT MORGAN STANLEY; PT $247