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9Wants to Know questions regarding the twelve Orphan Drugs we identified in our
investigation. Two companies Knight Therapeutics, maker of Impavido, and Arbor
Pharma, maker of Horizant did not respond to repeated requests for comment.
ABBVIE STATEMENT REGARDING HUMIRA
Humira has multiple orphan drug designations and approvals for the treatment of diseases
including juvenile arthritis, juvenile Chrons, Hurley stages 2 and 3 and more. The latest of
those designations will ensure market exclusivity until 2023. Humira has more than doubled
in price since 2012 according to Centers for Medicare and Medicaid data. The following are
comments provided to 9Wants to Know from AbbVie:
The Orphan Drug Designation program was created by the U.S. Congress and administered by
the FDAs Office of Orphan Product Development (OOPD) in order to spur innovation and
development of medicines to treat rare diseases. AbbVies research and development efforts are
focused on areas with significant unmet medical need.
An example of this is our work with HUMIRA in chronic inflammatory diseases. HUMIRA was
the first fully-human biologic and AbbVie continues to invest in the continued development of
new indications and enhancements for patients with unmet medical need. AbbVie's innovation
with HUMIRA has resulted in an unprecedented 10 FDA-approved indications, four of which
have received orphan drug designation, including juvenile arthritis, pediatric Crohns disease,
hidradenitis suppurativa and non-infectious pan, posterior and intermediate uveitis.=
Avastin is a popular cancer drug that received orphan drug approval for the treatment of
ovarian cancer in 2014. According to a 2016 report from Americas Health Insurance Plans,
Avastin cost more than $149,000 a year for cancer patients.
There is no correlation between orphan drug designations and the price of our medicines. We
take the pricing of our medicines very seriously and consider a variety of factors, including how
well the medicine works and the amount of money we need to allow us to continue discovering
new medicines for people with serious diseases such as cancer and blindness.
Each year, we invest nearly $10B (Source: Strategy&. "The Global Innovation 1000: Top 20 R&D
Spenders 2005-2016." more than any other healthcare company in the world - and we have
been highly productive with our research dollars, bringing 12 new medicines to patients in the
past 7 years. We also continue to invest in significant and sustained research for each of our
medicines after they first become available. We follow the science to determine how they might
help people with other diseases. For example, since Avastin was first approved in 2004, we have
continued to study the medicine and it is now approved for 9 distinct uses across 6 different
types of cancer. We have had more than 500 studies of Avastin ongoing at one time across
different diseases to determine how best to help people.
At times, we do raise the prices of some of our medicines. The money we generate allows us to
continue searching for cures. We consider the same factors that we do when setting the initial
price and do our best to make sure that any change in price does not prevent someone from
getting one of our medicines.
Genentech is committed to ensuring our medicines get to the people who need them, even if
they cant afford them. Over the past 20 years, Genentech has helped more than 1.5 million
patients get the medicines they need. In 2016 alone, we helped more than 166,000 people,
including by:
Providing free medicine to people who meet certain financial criteria and do not have
insurance, are underinsured or whose insurance wont cover a Genentech medicine.
Helping patients understand their insurance and providing assistance when a payer denies
coverage.
Providing assistance to eligible patients with their co-pay.
If any of your viewers need help with access to a Genentech medicine, we encourage them to call
(866) 4 ACCESS or visit Genentech-Access.com.
Lundbeck is the only global pharmaceutical company solely focused on brain disorders,
one of the costliest and riskiest areas of medicine.
We are a research-driven organization that invests approximately 20 percent of our
annual revenue directly back into our R&D programs.
Lundbeck has a unique ownership structure. We are 70% owned by the Lundbeck
Foundation, which reinvests our profits (~$100M) each year in basic research and
another 1 million annually in the Brain Prize, an amount even greater than the Nobel
Prize.
Tufts Center data shows that drug development for brain disorders takes about 20%
longer, costs approximately $100M more, and fails at a higher rate than nearly any other
area of medicine. As such, many companies have greatly scaled back or abandoned their
research in CNS.
It is important to note that Colcrys is not an orphan drug, nor covered by any orphan
drug program.
When the FDA launched its Unapproved Drugs Initiative in 2006, all marketers of
unapproved drugs, including all colchicines products, were notified that drugs on the
market had to comply with all current FDA requirements. URL Pharma was the only
manufacturer to accept the challenge of refining colchicine and conducting the necessary
clinical trials to gain FDA approval, and subsequent market exclusivity in 2009.
The clinical and development program undertaken for Colcrys by URL Pharma, clarified
important dosing, safety, efficacy and usage information compared to prior oral
colchicine formulations.
At Takeda, we believe all patients should have access to the medications prescribed by
their healthcare providers. We also understand that some patients may have financial
situations that make it difficult to pay for their prescriptions
Three company-sponsored Phase 4 clinical trials for rheumatoid arthritis, systemic lupus
erythematosus, and focal segmental glomerulosclerosis.
Phase 2 proof-of-concept trial to study the efficacy of the drug in amyotrophic lateral
sclerosis (ALS), often called Lou Gehrigs disease, for which there are very few effective
treatment options available at present.
Several multiple sclerosis studies, underway or nearing initiation.
All told, more than 800 patients will be enrolled in these company-sponsored, randomized
controlled clinical trials to study Acthar. As publicly-stated, Mallinckrodt expects to further
increase its R&D spending in absolute dollars at least 50% by 2021, and to more than double
R&D spending over the next decade, with the vast majority of our spending taking place in the
United States.
Prior to its acquisition by Mallinckrodt, the list price of Acthar was approximately $32,000. The
current list price per vial for the drug is $36,382, not the higher numbers which have appeared
in various reports, and Mallinckrodt discounts this list price to both public and private payers.
Mallinckrodt takes our responsibility as a pharmaceutical manufacturer very seriously, and our
pledge on drug pricing and innovation describes our philosophy around responsible pricing. The
pledge can be found: http://www.mallinckrodt.com/corporate-responsibility.
STATEMENT FROM HORIZON PHARMA REGARDING PROCYSBI
Procysbi is a delayed release form of cysteamine, a drug which has been FDA approved in the
U.S. under the brand name Cystagon since 1994 and was developed in the 1970s. Procysbi
currently costs about $5,000 for 60 pills. The equivalent dose of Cystagon costs $45. The
following is a statement from Horizan Pharma:
Most importantly, Horizon Pharma invests its resources to ensure patients have access to its
innovative medicines the vast majority of PROCYSBI patients pay $0 per month. Our efforts
to provide access to our medicines for patients who need them are part of our overall approach
to business. in 2016, Horizon provided $1.5 billion in patient support.
Our investment to develop and make PROCYSBI available exemplify what the Orphan Drug Act
was created for: incentivizing the advancement of innovative medicines for underserved patient
populations there are less than 500 nephropathic cystinosis patients in the United
States. PROCYSBI was granted orphan drug exclusivity because its bioavailability and 12 hour
dosing schedule is a significant advance over immediate-release cysteamine, which required
strict, every 6 hour, around the clock dosing that forced patients and caregivers to interrupt
sleep in order to take their medicine these challenges can lead to lack of compliance, failure to
thrive, and serious, long-term, irreversible damage to organs and tissue. The development of
PROCYSBI was driven by the unmet needs vocalized by the nephropathic cystinosis patient
community, and the FDA recognized PROCYSBI as a significant advance for these patients by
awarding it orphan drug status.
Emflaza (deflazacort) was not FDA approved in the United States until 2017, though clinic
trials completed in 1995 demonstrated the efficacy of deflazacort in treating Duchenne
muscular dystrophy. Marathon Pharmaceuticals announced they intended to sell Emflaza for
$89,000 a year in February. After weeks of public backlash, Marathon sold Emflaza to PTC
Therapeutics, who has not yet release how it plans to price Emflaza. The following is a
statement from PTC Therapeutics:
Depomed declined to provide a statement regarding Gralise and instead told 9Wants to Know
that Gralise falls outside the scope of your questions. Gralise is a form of gabapentin, which
was developed in the 1970s. Gralise is FDA approved to treat postherpetic neuralgia. The drug
has increased in price by more than 200 percent since 2012 according to CMS data. In follow-
up email, Depomed sent this:
As for pricing, Depomed has always exercised a balanced approach to all of our portfolio
products and works closely with patients, physicians, payors and insurers to ensure that patients
in need get the appropriate treatment.
Xenazine was not approved in the U.S. until 2008, though early studies of tetrabenazine
showed it was able to surpress involuntary movements in 1972. It lost exclusivity in 2015, but
continues to cost more than $6,500 per a monthly dose when patients used to be able to import
the same dose for less than $45 per month. The following is a statement from Valeant on
Xenazine:
Xenazine does not have current Orphan Drug exclusivity status and there are generic alternative
competitor products on the market. In 2016, Valeant created a Patient Access and Pricing
Committee that takes an approach that reflects the Companys commitment to ensuring that
appropriate pricing practices are met and that the investments we make in our R&D pipeline
continue to result in innovative products that improve people's lives.