LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Profit on $475,000 Novartis cancer drug could be a while coming

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Thu, Aug 31, 2017
10:23 pm
Reuters
RELATED NEWS
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here

Novartis`s new gene-modifying cancer therapy`s $475,000-per-patient sticker price has drawn fire from advocate groups calling for cheaper drugs, but analysts said the Swiss drugmaker could initially struggle to break even.

In a first for gene therapy in the United States, regulators approved Kymriah on Wednesday for patients up to 25 years of age who have relapsed or not been helped by previous treatment for B-cell acute lymphoblastic leukemia (ALL).

While patient groups hailed the potent immunotherapy as a potential cancer game-changer, the Swiss drugmaker was also criticised for setting a price that places Kymriah among the most-expensive drugs ever. It trails only a couple of gene therapies for ulta-rare diseases.

Since taxpayers have chipped in more than $200 million over the years for related research -- much early work on the drug was done at the University of Pennsylvania -- Novartis should have used more restraint, the Patients for Affordable Drugs lobby group said.

"We believe it is excessive," said David Mitchell, a cancer patient who founded the group. "Novartis should not get credit for bringing a $475,000 drug to market and claiming they could have charged people a lot more."

Novartis estimates that only 600 ALL patients a year would be eligible for Kymriah, making the initial pool for the treatment relatively scarce and worth less than $300 million.

The company is also targeting the several thousand people a year who have relapsed or refractory diffuse large B-cell lymphoma (DLBCL) diagnosed, but it will not file Kymriah for that group until later this year.BREAK-EVEN POINT?

Success with those patients is key to Novartis turning Kymriah into the $1 billion-a-year blockbuster drug the Swiss company predicts it will eventually become, but analysts say it is anyone`s guess when it will start covering its costs.

"It is not clear what the break-even point for profitability is, as this is a very capital intensive endeavour," said Bernstein analyst Tim Anderson, adding that Novartis is likely to cut the price of Kymriah for DLBCL patients.

On Thursday Novartis said that its cost of goods per Kymriah treatment is confidential commercial information, but analysts estimate it could be as high as $200,000.

The process is complex. Doctors remove T cells from each cancer victim and ship the material to its factory in Morris Plains, New Jersey. After re-engineering them to attack cancer, frozen cells are returned a couple weeks later for reinfusion into patients.

Additionally, Novartis partner Oxford BioMedica, which supplies a key ingredient, may be due $100 million over the next three years, plus royalties on sales.

Furthermore, competition is on the horizon. Gilead Sciences this week announced an $11.9 billion deal to buy Kite Pharma to gain access to a similar drug, while Bluebird Bio and Juno Therapeutics are all working on their own CAR-T therapies.

While Kymriah`s price tag will grab headlines, it pales in comparison with some other gene therapy treatments.

For instance, UniQure`s Glybera, for a very rare blood disorder, runs at about $1 million per patient. Meanwhile, GlaxoSmithKline’s Strimvelis, for so-called “bubble boy” disease, comes in at about $700,000 per patient. OUTCOME PRICING

Novartis points out that some groups think the company could actually have charged more for Kymriah.

British health authorities, for instance, had said that up to $650,000 might have been justified if the treatment added years to children`s lives.

Novartis plans to charge insurers and payers only when the drug proves to be effective one month into treatment, a so-called "outcome-based" pricing scheme that puts some of the risk of the drug on its manufacturer.

Even so, analysts hardly expect that to shield Novartis from criticism.

"Expect turbulent public discussions on drug pricing, demonstrating that the road to hell is paved with good intentions," said Bruno Bulic of equity research firm Baader Helvea.

Bulic forecasts that Kymriah will start adding to Novartis`s bottom line only after 2019, when it is expected to be given to more patient groups.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here

LATEST NEWS

Stocks to buy with Anil Singhvi: Here are Vikas Sethi’s top two picks today for good returns

Anil Singhvi decodes key levels of FIIs are Buying and Selling; EXPLAINED

Alert! WhatsApp status flaw allows stalkers to track users online? Check all details here

COVID-19: Role played by Indian government in speeding up vaccine development, production - All you need to know

Gujarat Board Exam 2021 Latest News: After CBSE, GSEB POSTPONES class 10 class 12 board exams - check all UPDATES here

Ashok Leyland delivers first of its kind, LBP vehicles to IAF in link-up with Lockheed Martin

ICSE board exams update: CICSE postpones class 10, 12 board exams amid COVID-19

CBSE class 10 promotion criteria, class 12 board exam dates and will ICSE Class 10, 12 exams be postponed?—All you need to know

Realme 8 5G India launch date set for April 22: Check expected price, specifications and more

Tata Metaliks has an order book of 18 months in DI Pipes: Sandeep Kumar, MD

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved