On July 14th, 2021, the New York Times reported that 2 Ohio medical centers decided against administering Biogen’s (NASDAQ: BIIB) controversial Alzheimer’s drug Aduhelm to its patients.

The statement by the Cleveland Clinic, one of nation’s largest and most respectable medical centers reads: “Based on the current data regarding its safety and efficacy, we have decided not to carry aducanumab at this time.”

Can others follow suit and what impact may this have on the projected $9B in peak sales?

In his most recent update, Mizuho analyst Salim Syed believes this is a possibility that “hasn't been fully digested by the Street.”

He goes on to point out that the Cleveland Clinic's P&T committee’s decision to avoid Aduhelm is based on safety and efficacy data, rather than the financials.

While acknowledging the “clear patient interest and enthusiasm for the drug”, the analyst goes on to point out the highly polarized views on Aduhelm by Key Opinion Leaders (KOLs).

The analyst will wait to see whether other medical professionals follow suit and views this as a potential risk to projected $9B peak sales for the drug.

Mizuho remains cautious as they maintain a “Neutral” rating and $244 Price Target on the shares.

Written by Vlad Schepkov | [email protected]