Policy At $2 Million, New Novartis Drug Is Priciest Ever

[Lawpy]

At $2 Million, New Novartis Drug Is Priciest Ever

Novartis said it plans to price its recently approved gene therapy at $2.125 million, making it the world’s most expensive medicine.

www.wsj.com

Novartis slaps $2M-plus price tag on newly approved gene therapy Zolgensma—and cost watchdogs approve

Industry watchers have been speculating for months about just how high Novartis would price gene therapy Zolgensma on approval—and just how payers would cover it. | Industry watchers have been speculating for months about just how high Novartis would price gene therapy Zolgensma—and just how...

www.fiercepharma.com

At $2.1 Million, New Gene Therapy Is The Most Expensive Drug Ever

The Food and Drug Administration approved a new gene therapy for a rare but devastating genetic disorder. The drugmaker says the cost is worth it because it's a one-time treatment that saves lives.

www.npr.org

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[deleted480308]

The only way to solve prices this high is by not paying it

 

[Lawpy]

The only way to solve prices this high is by not paying it

I don't think this would work if it's the only available treatment though

 

[deleted480308]

I don't think this would work if it's the only available treatment though

The line where less people buy something is how the price stays down, it’s why mcdonalds doesn’t charge 70,000 dollars for fries

And yes, maybe that med is the only way someone stays alive. That doesn’t change that the way to keep the price down is for payers to finally say, “nope” not paying that. The downstream consequence might be less drugs developed for smaller frequency diseases but it is how prices stay down.

You can’t always pay the price now matter what and expect prices to not skyrocket

 

[sunshinefl]

I would pay it if I needed it.

 

[deleted480308]

I would pay it if I needed it.

Do you have $2mil?

Because if you don’t, you wouldn’t pay it

 

[sunshinefl]

Do you have $2mil?

Because if you don’t, you wouldn’t pay it

No lol. I would beg and borrow to try. I would want to pay it. I would think it was worth it. But yes you are correct I currently don’t have 2 million dollars. Just a poor medical student for now.

 

[deleted480308]

No lol. I would beg and borrow to try. I would want to pay it. I would think it was worth it. But yes you are correct I currently don’t have 2 million dollars. Just a poor medical student for now.

And as opposed to using that reality to limit pricing by supply and demand, a bunch of people who don’t understand economics will just expect the govt to steal your neighbors money and make them pay for you

 

[sunshinefl]

And as opposed to using that reality to limit pricing by supply and demand, a bunch of people who don’t understand economics will just expect the govt to steal your neighbors money and make them pay for you

Oh I’m with you on economical and political philosophy as far as I can tell from all the years here. I was just trying to say hypothetically if I did have the money, I would. But you’re right, I can’t as of now. And when I said beg and borrow I purposely left off “steal”. And I also was imaging asking family and friends for help if I didn’t have it, which is the was I think the world should work. I.e. your initial safety net isn’t the whole country.

 

[Dantrolene FC]

The only way to solve prices this high is by not paying it

I disagree. I have a different viewpoint of these high priced medicines than most I’ve met.

The $2 million price tag is less than the $5 million cost of chronic lifetime care. Then the cost of the drug drops tremendously after it loses its patent protection after ~18 years. So we save some money now, and we save a ton of money in 20 years. We just have to pay a finders fee to the drug company first.

It’s the same thing with Hep C. It’s way cheaper to cure Hep C for $80k than it is to pay for the liver failure care and/or an expensive liver transplant. Then after 20 years, we’ll be curing Hep C for $1k; which is virtually nothing compared to liver failure.

 

[deleted480308]

I disagree. I have a different viewpoint of these high priced medicines than most I’ve met.

The $2 million price tag is less than the $5 million cost of chronic lifetime care. Then the cost of the drug drops tremendously after it loses its patent protection after ~18 years. So we save some money now, and we save a ton of money in 20 years. We just have to pay a finders fee to the drug company first.

It’s the same thing with Hep C. It’s way cheaper to cure Hep C for $80k than it is to pay for the liver failure care and/or an expensive liver transplant. Then after 20 years, we’ll be curing Hep C for $1k; which is virtually nothing compared to liver failure.

“We” as in society shouldn’t be paying either. That cost should belong to the patient and then they can make a decision based on their budget

 

[Lawpy]

 

[darkdome987]

“We” as in society shouldn’t be paying either. That cost should belong to the patient and then they can make a decision based on their budget

Just because the list price is $2M does NOT mean insurance companies will pay out the entire price. What generally happens is that insurance companies will offer to cover the drug for a very select group and then engage in price negotiations with the manufacturer for broader coverage. Regardless, the lifetime cost of untreated SMA is significantly higher than the cost of this drug.

 

[deleted480308]

Just because the list price is $2M does NOT mean insurance companies will pay out the entire price. What generally happens is that insurance companies will offer to cover the drug for a very select group and then engage in price negotiations with the manufacturer for broader coverage. Regardless, the lifetime cost of untreated SMA is significantly higher than the cost of this drug.

I agree with all of that. Still the patient's ultimate responsibility and not society as a whole

 

[Cheeni17]

Does it actually work good?

 

[Cheeni17]

I agree with all of that. Still the patient's ultimate responsibility and not society as a whole

I wouldn’t be too against paying for people’s genetic disorder care. It’s not mentally their fault. Now all the Medicaid’s skanks and vagrants who abuse the system is another story.

 

[Cheeni17]

I disagree. I have a different viewpoint of these high priced medicines than most I’ve met.

The $2 million price tag is less than the $5 million cost of chronic lifetime care. Then the cost of the drug drops tremendously after it loses its patent protection after ~18 years. So we save some money now, and we save a ton of money in 20 years. We just have to pay a finders fee to the drug company first.

It’s the same thing with Hep C. It’s way cheaper to cure Hep C for $80k than it is to pay for the liver failure care and/or an expensive liver transplant. Then after 20 years, we’ll be curing Hep C for $1k; which is virtually nothing compared to liver failure.

Where did this 5 million per hep c chronic liver failure number come from ? Not doubting you but source would be nice before we start throwing out numbers.

Also depends if they stay clean as you prob know insurance companies won’t be for help c treatment in those who are still living a life of skankhood

 

[Dantrolene FC]

Where did this 5 million per hep c chronic liver failure number come from ? Not doubting you but source would be nice before we start throwing out numbers.

Also depends if they stay clean as you prob know insurance companies won’t be for help c treatment in those who are still living a life of skankhood

Sorry, I reread my post and can see how it’s misleading. The second paragraph is talking about the chronic treatment for SMA, which is estimated at $4.1 million, not quite the $5 million I had said.

AveXis Announces Innovative Zolgensma® Gene Therapy Access Programs for US Payers and Families

www.novartis.com

The last paragraph (Hep C) was a totally different example. I was just trying to give an example of how drug companies’ expensive drugs can actually make treatments cheaper. I used Hep C because it is more common of a disease than SMA and it’s costs at ~$80k are easier to wrap your mind around than $2 million.

Here, a liver transplant is estimated to be $812k, around 10x more expensive than Harvoni. http://www.milliman.com/uploadedFiles/insight/2017/2017-Transplant-Report.pdf

It is my opinion that these two companies are doing a great service to their patients and the health system in these two examples.

 

[deleted480308]

I wouldn’t be too against paying for people’s genetic disorder care. It’s not mentally their fault. Now all the Medicaid’s skanks and vagrants who abuse the system is another story.

It’s also not their neighbor’s fault. The neighbor shouldn’t be billed. Sometimes we just get a bad draw by fate, that shouldn’t create a liability to someone else

 

[Dantrolene FC]

It’s also not their neighbor’s fault. The neighbor shouldn’t be billed. Sometimes we just get a bad draw by fate, that shouldn’t create a liability to someone else

I’ve always appreciated this argument that people should pay for their own health care. But if people were 100% responsible for their own health care, then how would physicians make so much money?

Most patients I’ve seen in the hospital are sick from irresponsible choices. Think smoking, obesity, sedentary lifestyle.

People are irresponsible. Look at how many people don’t have enough money saved/invested to retire with, now imagine how many people would be without insurance if the government didn’t provide Medicaid and Medicare or if they didn’t supplement health insurances.

 

[deleted480308]

I’ve always appreciated this argument that people should pay for their own health care. But if people were 100% responsible for their own health care, then how would physicians make so much money?

Most patients I’ve seen in the hospital are sick from irresponsible choices. Think smoking, obesity, sedentary lifestyle.

People are irresponsible. Look at how many people don’t have enough money saved/invested to retire with, now imagine how many people would be without insurance if the government didn’t provide Medicaid and Medicare or if they didn’t supplement health insurances.

Doctors should only make what people choose to pay them
If you cannot afford it you cannot have it....not complicated

 

[Dantrolene FC]

Doctors should only make what people choose to pay them
If you cannot afford it you cannot have it....not complicated

I know. I’m just saying it’s nice for physicians to have a nice salaries.