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Dr. Peter B. Bach: "What Soaring Drug Prices Mean for Patients," 9.3.15
The document discusses the rising prices of cancer drugs, highlighting significant cost increases and their implications on patient care and healthcare systems. It questions whether the high costs are justified given the limited benefits of some treatments and suggests a need for new pricing models based on the value of drugs. Additionally, it emphasizes the impact of these prices on patients, taxpayers, and healthcare programs.
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Dr. Peter B. Bach: "What Soaring Drug Prices Mean for Patients," 9.3.15
- 1. Some questions abouthigh drug prices Peter B. Bach, MD Center for Health Policy and Outcomes Memorial Sloan Kettering Cancer Center bachp@mskcc.org @peterbachmd September 3, 2015
- 2. 100-foldpriceincrease Rising prices ofcancer drugs
- 3. Cost for anadditional year of life goes up each year in cancer
- 4. Prices are atthe level needed to drive any innovation!
- 5. The Market forALK Inhibitors: Appropriately Priced? Or frothy? 4 ALK Inhibitors are currently in preclinical development 7/2014: Latest Alectinib trial begins 6/2014: Latest NMS-E628 trial begins 3/2014: Latest AP26113 trial begins 1/2014: Latest PF- 06463922 trial begins 7/2013: Latest CEP-37440 trial begins 10/2012: Latest TSR-011 trial begins 6/2012: Latest X-396 trial begins 4/2014: Zykadia approved by the FDA 8/2011: Xalkori approved by the FDA Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
- 6. Okay, prices arehigh. But at least they make sense!
- 7. Two drugs (peter’scrude assessment) Farydak (Feb 2015 approval) Ibrance (Feb 2015 approval) Price: $10,035 per month •FDA path: Squeaked through (voted down by ODAC advisors 5 to 2). • Use: 3rd line multiple myeloma •(11,000 deaths per year) • Benefit: Increased PFS by 5 months, but not overall survival • Tolerability: Severe side effects with a “Black Box” Price: $9,978 per month •FDA path: Accelerated approval from impressive Phase 2 data •Use: 1st line metastatic breast cancer (larger health problem, 40K deaths/yr) •Benefit: Increased PFS by 10 months, survival data pending • Tolerability: Moderate side effects
- 8. Sure Prices areHigh, but the market still works
- 9. Product prices riseeven as: a) competitors enter the market b) new indications are added Gleevec Tablet Year 2004 2006 2008 2010 2012 2014 Averagecostperday($2014) 0 50 100 150 200 250 Nilotinib approved Dasatinib approved Multiple additional indications approved
- 10. The reason whyUS Pharma is such a great sector? Because we pay high prices in the US.
- 11. Top 10 Pharma (basedon 2014 sales) 2014 Sales % US sales in 2014 1. Novartis (Switzerland) $58 bn 32% 2. Pfizer (US) $49.6 bn 40% 3. Roche (Switzerland) $47.5 bn 43% 4. Merck (US) $42.2 bn 41% 5. Sanofi (France) $38.1 bn 34% 6. GSK (UK) $37 bn 32% 7. Johnson & Johnson (US) $32.3 bn 54% 8. AstraZeneca (UK) $26.1 bn 39% 9. Gilead Sciences (US) $24.9 bn 75% 10. Bayer (Germany) $22.4 bn 51% (US + Canada) 11. Teva (Israel) $20.3 bn 54% 12. Abbott Laboratories (US) $20.3 bn 30%
- 12. Who suffers? • Taxpayers •State Medicaid programs • TheVA health system • And . .. Patients
- 14. Patients driven intobankruptcy
- 15. What does anew model look like?
- 16.
- 17. Or what aboutprices based on ‘value’? • Who cares about value? – Patients: Benefits and side effects of treatment – Academia and Industry: Promote innovation and risk-taking, support the costs of research – Society:Target rare disease, tackle public health problems
- 18. DrugAbacus combines valuedomains http://www.drugabacus.org/
- 19.