I was a little shocked by the cost of Gattex. I hope NPSP doesn't price themselves out of the US market. It may be a whole lot cheaper to go overseas to get the drug. Does insurance actually pay this......no wonder the US health care system is in turmoil.
I was right.....a low priced trading stock.....will open 1/3/2013 on the downside. It will go back to 5/6
because nobody and I mean nobody, will be able to afford this treatment. Besides, who has these kinds of medical problems? I believe very few worldwide, especially in the US.
There are several drugs which cost $200,000-$405,000 per y6ear. Cerzyme, Myozyme, Zyprexa, Soliris, Elaprase, Naglazyme, Folotyn, Kalydeco. ULTRA orphan drugs cost more because far more is spent on development and there are huge failure rates. Someone has to pay the cost.
I understand NPS's rationale in pricing Gattex . If there are targeting 14% of patients (the % that were completely weaned off PN after Gattex use) (from STEPS2 data), we get 1400 patients (14% of 10,000 PN population) (the FDA also used 10,000 to 15,000 PN patient number in their documents).
With $270K per patient ($295K minus co-pay that NPS will subsidize) that gives $378M in sales. Given PN patients have a 5 year overall survival and complications of this debilitating condition, the prescribing physician will justify the steep price. With that said, the short term price action is still uncertain. What I am surprised is none of the analysts on-call picked up on this.