UK approves Lilly’s Alzheimer’s drug but labels it ‘too expensive’ for NHS use

The UK has approved Eli Lilly’s new Alzheimer’s treatment, donanemab, which has shown promise in slowing cognitive decline. However, the National Institute for Health and Care Excellence (NICE) determined it is too costly for widespread use within the NHS. This decision comes despite the Medicines and Healthcare products Regulatory Agency (MHRA) deeming the drug safe and effective. NICE’s refusal means that, for now, donanemab will not be available to most patients within the public healthcare system.

The decision has sparked debate among healthcare experts and patient advocacy groups, who argue that the drug’s potential to delay symptoms by up to seven months could significantly improve the quality of life for those affected. NICE’s evaluation director, Helen Knight, stated that while the agency recognizes the benefits donanemab offers to both patients and caregivers, the impact does not justify the drug’s high price. She emphasized that the evaluation included considerations of caregivers’ well-being and the overall cost burden to the NHS.

High Costs Lead to Limited Access

NICE’s stance echoes its previous decision on another Alzheimer’s drug, lecanemab, earlier this year. The consistency in these rulings signals the ongoing challenge of balancing the efficacy of breakthrough medications with their financial impact on the UK’s healthcare system. Analysts point out that without significant price reductions, such drugs are unlikely to gain public funding approval, limiting their availability to private healthcare providers.

The decision also raises concerns about healthcare inequality, as patients who cannot afford private treatments may not benefit from these advancements. This situation could push pharmaceutical companies to negotiate price reductions or risk losing access to the UK’s market entirely.

Expert Opinion: Why NICE Rejected Donanemab

Healthcare professionals and economists have shared mixed views on NICE’s decision. Knight clarified that the committee conducted an independent review of all clinical evidence, taking into account the wider economic implications. She indicated that while the drug’s ability to delay cognitive decline is valuable, it ultimately failed to meet NICE’s cost-effectiveness criteria for NHS coverage.

Pharmaceutical analysts speculate that Eli Lilly may now face pressure to reduce donanemab’s price or risk seeing similar rulings in other markets. This could impact the company’s broader market strategy and financial projections. The share price of Eli Lilly has already shown fluctuations in response to these developments, highlighting investor concerns over the drug’s future profitability in key regions like the UK.

Eli Lilly’s Response and Future Outlook

Eli Lilly has expressed disappointment but remains optimistic about donanemab’s potential. The company plans to engage further with NICE to address cost concerns, possibly exploring alternative pricing models or discounts. Industry experts suggest that Lilly might consider tiered pricing strategies or partnerships to make the drug more affordable and accessible.