Download Value Based Drug Development, Ellen Sigal

Value Based Drug Development
April 21st, 2015
Moderator: Ellen V. Sigal, PhD
Chair & Founder, Friends of Cancer Research
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Expenditures on Cancer Treatment
Total and by Type of Service (in billions)*
$100.0
$88.3
$90.0
In 2011 dollars (billions)
$80.0
$74.8
2001 (adjusted to 2011)
$70.0
$60.0
2011
$56.8
$52.0
$50.0
$40.0
$30.0
$20.0
$10.0
$10.0
$2.0
$2.4
$2.9
$0.0
Total
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•
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Ambulatory Visits and
Hospital Stays
Prescription Medicines
Home Health
US Spending on Cancer Treatment continues to rise
Total costs increased 35% from 2001 - 2011
Prescription drugs are 11.4% of Cancer Treatment Expenditures
• Drug costs alone rose $8 billion in 10 years, an increase of 500%
*Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey, 2001 and 2011
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Variations in US Pricing Medical Procedures and Drugs*
25th Percentile
Average
95th Precentile
$12,726
$11,007
$6,214
$5,482
$4,293
$2,929
$1,145
$532
MRI
$2,724
$299
$896
CT Scan Abdomen
$1,447
Hospital Cost per Day
Gleevec
• US cost of care can vary widely for routine medical procedures, hospital
stays, and cancer drugs
• Prescription Drug costs - 9% of Total US Healthcare Expenditures
• Gleevec has had a much higher success rate for patients than many
other high cost drugs
*Data from International Federation of Health Plans 2013 Comparative Price Report
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Cost Difference for Cancer Patients Receiving Chemotherapy*
• Patients receiving chemotherapy treatment in a community oncology
clinic (COC) had a 20% to 39% lower cost of care, depending on diagnosis,
compared with those receiving chemotherapy in the hospital outpatient
setting (HOP)
*Am J Manag Care. 2015;21(3):e189-e196
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In Summary
• National Cancer Care Expenditures continue to rise
– Costs for routine procedures and cancer care vary substantially
– Patients can end up paying more depending on the treatment center
– Great potential to address rising costs for utilization of precision medicine
and genetic screening (right drug, to the right patient, at the right time)
• As we discuss value in drug development, cost issues are at the
forefront
• It is important to determine:
1. What does value mean for patients?
2. How the following key components impact patient access,
quality of life, and chance of survival:
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•
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Cost Trends
Advances in Innovation
Payment Models
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Panelists
• Richard Schilsky, MD
– Chief Medical Officer, ASCO
• Mace Rothenberg, MD
– Senior Vice President and Chief Medical Officer, Pfizer
• Andrea Stern Ferris
– President, LUNGevity
• Louis J. DeGennaro
– President, CEO, Leukemia and Lymphoma Society
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