Are Cancer Drugs Becoming Too Costly for Their Effectiveness?

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By Paul Ausick Updated Published
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When the American Society of Clinical Oncology (ASCO) decided to create a rating scale for cancer drugs, it certainly must have expected to get some pushback. The group’s initial version of the ASCO Value Framework was published in the “Journal of Clinical Oncology” earlier this week, and the pushback should begin gathering steam shortly.

For example, Alimta, from Eli Lilly & Co. (NYSE: LLY), is the patented version of pemetrexed, a best-selling lung cancer treatment. Just on Thursday Eli Lilly won a patent ruling in Lonadon that offers protection through June 2021 for a drug cocktail including Alimta that was scheduled to lose that protection in several European countries in December. Alimta posted global sales of $2.79 billion in 2014 and is Eli Lilly’s biggest seller.

On a scale of 0 to 100 (or 130 if bonus points are added), the cocktail including Alimta scored a net health benefit of 0 — as in nada, zip, zilch. And for that treatment a patient pays $9,200 a month.

Bevacizumab, the generic name for Avastin from Swiss giant Roche, is another lung cancer drug. Avastin costs $11,900 a month and scored 16 on the ASCO scorecard.

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Another high cost cancer treatment, Jevtana from Sanofi (NYSE: SNY), costs $10,700 a month and gets a net health benefit score of 16. The drug, in combination with prednisone, is used to treat prostate cancer.

A drug’s score may vary, depending on the type of cancer being treated. Avastin, according to a report at FiercePharma, which was first approved to treat colorectal cancer, has better overall survival data in that disease, but the examples provided by ASCO did not include the field.

ASCO’s president said:

Value and cost are among the biggest issues in healthcare today, but there are few tools to help doctors and patients objectively assess benefits, side effects and costs. Our goal is to help oncologists and their patients weigh potential treatment options based on high-quality scientific evidence and a thoughtful assessment of each patient’s needs and goals.

The ASCO Value Framework article is available here.

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About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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