Indianapolis-based payer Anthem said it will not cover Sarepta Therapeutics' recently approved Duchenne muscular dystrophy drug, Reuters reports.
Sarepta gained U.S. Food and Drug Administration approval for the drug eteplirsen in September after a months-long review process that sparked a heated internal debate.
However, Anthem called the drug "investigational and not medically necessary," and said it "failed to show it improves health outcomes, and therefore it is not a covered benefit for our members," Reuters reports.
Per patient per year, the drug costs about $300,000. Minnetonka, Minn.-based insurer UnitedHealthcare said it will cover the drug. Hartford, Conn.-based Aetna said it will determine policy coverage following a full clinical review, according to the report.
Sarepta's stock fell 7 percent Friday following Anthem's rejection.
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