By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: A High Price for Rare Cancer Drugs
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Medical Ethics > A High Price for Rare Cancer Drugs
BusinessMedical Ethics

A High Price for Rare Cancer Drugs

gooznews
gooznews
Share
5 Min Read
SHARE

Pfizer last week won Food and Drug Administration “accelerated approval” for Xalkori (crizotinib) for a rare form of metastatic lung cancer that strikes about 3 percent of people — almost always non-smokers — who come down with the disease. That’s about 10,000 patients per year in the U.S., and perhaps a similar number abroad. Multiply that times the $$115,200 a year the company plans to charge for Xalkori, and they’ve got themselves a billion dollar blockbuster.

Pfizer last week won Food and Drug Administration “accelerated approval” for Xalkori (crizotinib) for a rare form of metastatic lung cancer that strikes about 3 percent of people — almost always non-smokers — who come down with the disease. That’s about 10,000 patients per year in the U.S., and perhaps a similar number abroad. Multiply that times the $$115,200 a year the company plans to charge for Xalkori, and they’ve got themselves a billion dollar blockbuster.

What does it mean when a drug earns “accelerated approval”? Unfortunately, too many people think this means that it worked so well that the FDA rushed it to market. That’s not how it works. Accelerated approval, which really should be called interim approval, is reserved for drugs that show promise for treating life-threatening diseases like lung cancer, which is the best way to describe Xalkori.

In two single-arm clinical trials (no comparison arm) involving 255 patients, Xalkori delayed tumor progression for about 10 months in slightly more than half the patients who had a specific genetic mutation. Will it prolong survival? That isn’t known yet. Those findings must await the results of follow-up trials, which will contain a placebo arm and will evaluate the drug’s potential for delaying death, not just the surrogate marker of delayed tumor progression, which may or may not signal improved prospects for survival.

More Read

Drug Cos. Using REMS to Delay Generic Competition
Will HITECH Money beThere Tomorrow?
GAO Confirms Health Insurance Rating Rules Hike Premiums for Young People
How States Waste Medicaid Dollars
The Medical Conspiracy of Silence

How long will it take for Pfizer to complete those trials? At least a couple of years, since that is the life expectancy of most patients diagnosed with metastatic lung cancer whether they have the particular mutation targeted by Xalkori or not. And it might take a lot longer, since the “excitement” among oncologists (see this MedPage Today story) may make it difficult to recruit patients with that mutation to enter a clinical trial where they have a 50-50 chance of getting a placebo. It’s a ready-made excuse for Pfizer, should it fail to complete the trials in a timely manner, which has happened in a large handful of cases involving cancer drugs given accelerated approval.

Through this period where there will be no concrete proof of efficacy, Pfizer will get to charge an outlandishly high price for the drug. Is there a way to put pressure on the company to complete the trials in a more timely fashion, so that the paying public knows that it is truly getting value for its health care dollar and not subjecting patients to some pretty rough side effects (nausea, diarrhea, etc.) for no benefit? Last October, an article appeared in Health Affairs suggesting that Medicare should only pay the asked price for a drug that has not yet proven its superiority to existing treatments for up to a maximum of three years. If the company doesn’t provide clinical proof justifying the higher price within that time, the authors suggested, Medicare should simply pay the rate charged for the best “proven” therapy, which in cancer chemotherapy, is almost always a generic.

A similar model could be applied to drugs given accelerated approval. Medicare and private insurers could agree to pay the asked $115,200 a year for this drug  for three years, which is a reasonable time to complete the final trials. After that, it should be generic pricing until the company comes up with definitive proof.

TAGGED:cancerPfizerpharmaceuticals
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5KFollowersLike
4.5KFollowersFollow
2.8KFollowersPin
136KSubscribersSubscribe

Latest News

Mental Health EHR
What Are the Core Features of a Mental Health EHR?
Mental Health Therapies
January 28, 2026
ADHD in adulthood
ADHD In Adulthood And Its Lasting Effects
Health
January 27, 2026
3d printing in modern medicines
From Concept To Care: How 3D Printing Is Reshaping Modern Medicine
Infographics Technology
January 27, 2026
titanium importance in healthcare
Why Titanium Matters In Modern Medicine
Health Infographics
January 27, 2026

You Might also Like

What is Leadership in Medicine?

April 11, 2011
competitive race in healthcare
BusinessFinanceHospital Administration

Why Your Healthcare Competition Is Worse Than You Thought

November 4, 2013
IRO Services
Business

A Commitment to Quality IRO Services – A Letter From Our Medical Director

September 16, 2015
a christmas story
BusinessSocial Media

Is Your Social Media Just a Crummy Commercial?

December 19, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?