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ICER’s Favorable Assessment Of Bluebird Bio’s Gene Therapy Zynteglo May Have Important Pricing And Reimbursement Implications

May 5, 2022
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ICER’s Favorable Assessment Of Bluebird Bio’s Gene Therapy Zynteglo May Have Important Pricing And Reimbursement Implications
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On this picture illustration, a Bluebird bio brand is seen on a smartphone. (Picture Illustration by … [+] Pavlo Gonchar/SOPA Photos/LightRocket by way of Getty Photos)


SOPA Photos/LightRocket by way of Getty Photos

Final month, I wrote in regards to the firm bluebird bio’s severe money move issues. These issues haven’t abated. Nonetheless, bluebird bio obtained some much-needed optimistic information from a positive evaluation launched a number of weeks in the past by America’s preeminent cost-effectiveness watchdog, the Institute for Medical and Financial Evaluation (ICER).

ICER evaluated the clinical- and cost-effectiveness – in addition to budgetary impression – of one among two gene therapies bluebird bio has submitted to the Meals and Drug Administration (FDA) for approval; Zynteglo (betibeglogene autotemcel), indicated for beta thalassemia. ICER’s evaluation suggests the product is cost-effective. Given the growing influence ICER has on payer choice making, this might facilitate Zynteglo’s market entry.

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First, although, the product must be authorized by the FDA. An advisory committee assembly is scheduled for early June.

Beta thalassemia is an inherited blood dysfunction that in its most extreme type may cause a number of main issues, together with continual anemia, delayed progress, coronary heart, bone, liver, and gall bladder points, enlarged spleen and kidneys, and untimely demise. The illness usually requires common blood transfusions to restrict its deleterious results. Zynteglo has the potential to remedy and save sufferers from a lifetime of blood transfusions. The therapeutic “is the first and only one-time gene therapy for transfusion-dependent beta-thalassemia that provides sufferers the potential to attain transfusion independence.”

Ought to it win approval within the U.S., initially Zynteglo would probably have a market of roughly 1,000 to 1,500 beta thalassemia sufferers.

Bluebird bio has instructed publicly that Zynteglo could be priced primarily based on its “scientific worth to sufferers.” Now the Institute for Medical and Financial Evaluation (ICER) has given Zynteglo its figurative blessing, stating that the product is cost-effective, even on the worth of $2.1 million per remedy.

Notably, bluebird bio tried to enter the European market at a worth of $1.8 million, and was rebuffed.

Bluebird bio’s European expertise has been a combined bag. Regardless of having two of its merchandise authorized by the European Medicines Company, earlier than the FDA has decided on both remedy, bluebird bio wasn’t profitable in its efforts to persuade reimbursement authorities to offer entry to its merchandise at a worth acceptable to the corporate.

In April 2021, bluebird bio introduced it was voluntarily eradicating Zynteglo from the German market. Bluebird bio and German insurance coverage authorities didn’t agree on a worth for the gene remedy.

The core of the disagreement was that the comparatively low price of transfusions made Zynteglo’s worth to deal with beta-thalassemia “untenable,” within the eyes of German reimbursement authorities.

Additionally final yr, Britain’s Nationwide Institute for Well being and Care Excellence (NICE), printed draft guidance recommending that the Nationwide Well being Service not cowl Zynteglo. In keeping with NICE, the advantages didn’t justify the worth within the U.Okay. of $1.8 million. Right here, NICE evaluated the product’s cost-effectiveness, given a $1.8 million price ticket cut up right into a 20% down fee and 4 extra such funds for annually of transfusion independence.

By stark distinction, the U.S.’s ICER has deemed bluebird bio’s gene remedy Zynteglo cost-effective, even when it launches at $2.1 million per remedy. At $2.1 million, Zynteglo could be probably the most costly therapies ever to be marketed within the U.S.

ICER added that its preliminary conclusions were contingent on the remedy being funded “via an outcomes-based contract for sufferers with sustained transfusion independence.” On this context, the $2.1 million could be paid over a interval of 5 years, supplied there may be sturdy remedy success alongside the way in which.

Within the draft report, ICER was unequivocal in its finding that “beti-cel supplies internet well being advantages to sufferers with transfusion-dependent beta-thalassemia, and given the excessive annual prices of normal care, conventional cost-effectiveness modeling signifies that this new remedy meets generally accepted worth thresholds at a cumulative worth of $2.1 million.”

Furthermore, on the proposed worth of $2.1 million per remedy course, ICER stated that every one eligible sufferers may very well be handled with Zynteglo with out crossing ICER’s arbitrarily outlined funds impression threshold of $734 million per yr. It is because most beta thalassemia sufferers – presumably much less severely impacted – might stay on the present commonplace of care.

Notably, ICER makes use of comparable price per High quality Adjusted Life Yr strategies to those Britain’s NICE applies, however got here to a unique conclusion.

It’s stated that evidence is global, but decisions are local, and that contextual variations – when it comes to acceptable pricing, cost-effectiveness and affordability thresholds – affect the function and utility of well being expertise evaluation. Undoubtedly, that is true. What’s cost-effective to a payer within the U.S. – or a U.S.-based group that assesses healthcare applied sciences – will not be thought-about cost-effective in different jurisdictions. There are even intra-jurisdictional variations – say, inside the U.S., or the U.Okay. for that matter – in interpretation, and use of cost-effectiveness and affordability thresholds.

Clearly, the June FDA advisory committee will likely be an enormous second for struggling bluebird bio. A optimistic choice by FDA coupled with the favorable ICER evaluation might result in a strong money move. Being thought-about cost-effective could provide Zynteglo a definite benefit in its negotiations with payers.

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Tags: assessmentBiosBluebirdFavorablegeneICERsimplicationsimportantpricingReimbursementTherapyZynteglo

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