Eli Lilly's Alzheimer's drug rejected in the UK (NYSE:LLY)

Shortly after a British regulator approved Biogen (NASDAQ: BIIB) Alzheimer’s drug Leqembi for use in the country’s National Health Service (NHS), The Telegraph reported on Saturday that its Eli Lilly (NYSE: LLY) will suffer the same fate for its drug donanemab.

The National Institute for Health and Care Excellence (NICE), which is responsible for drug policy in the UK's NHS, issued draft guidelines on Friday stating that the use of leqembi in the NHS would not be a cost-effective use of taxpayers' money.

The reprimand came shortly after the British Medicines and Healthcare Products Regulatory Agency (MHRA) approved the anti-amyloid infusion, making Great Britain the first European country to approve this therapy.

However, citing health sources, the newspaper said the NHS would “definitely” reject LLY’s drug donanemab.

The MHRA may not even approve donanemab due to the drug's side effect profile, the paper added. The drug must be administered monthly, unlike Leqembi's biweekly dosing.

“After rejecting lecanemab, Nice will definitely not approve donanemab, which also carries twice the risk of serious side effects,” a source said.

Donanemab, sold in the US under the brand name Kisunla, has a similar mechanism of action but is likely to be even more expensive, with an annual price of £25,000, 25 percent more than Leqembi's drug.

Eli Lilly (LLY) and Biogen's partner for Leqembi Eisai (OTCPK:ESALF) (OTCPK:ESAIY) have not yet responded for comment. MHRA and NICE declined to comment on ongoing reviews.