Million-Dollar
Therapies
·
Zolgensma, a
one-time infusion, is among the first in a new class of cutting-edge gene
therapies that offer enormous promise for people with fatal or debilitating
conditions.
·
The pharmaceutical company Novartis, has
negotiated deals with national health systems and insurers to get the drug
covered in many of the richest countries.
·
Zolgensma,
which treats a rare genetic disorder known as spinal muscular atrophy, or
S.M.A., was for a time the world’s most expensive treatment.
·
Zolgensma’s
first 14 months of availability in Brazil could have paid for more than four
million doses of the Covid-19 vaccine.
·
Zolgensma’s
list price of $2.1 million in the United States in 2019, believed to be the
highest ever when it was set, has since been surpassed four times, and many
more treatments expected to be as expensive are on the horizon.
·
In Europe, a product approved for a deadly
neurological disorder known as metachromatic leukodystrophy was given list
prices of up to $3.9 million.
·
The biotechnology company Bluebird Bio last
year set price tags of $2.8 million when it won approvals to treat an inherited
blood disorder called beta thalassemia and $3 million to treat a fatal
neurological condition known as cerebral adrenoleukodystrophy.
·
One-time treatments. Such a therapy has just
one chance to earn money, and in some cases can replace chronic treatments that
would otherwise be given for the rest of a patient’s life at a much higher
cumulative cost.
·
Until six years ago, there were no approved
treatments for S.M.A., which affects about one in 10,000 newborns.
·
Studies show Zolgensma
can prevent further decline, but cannot restore motor or muscle function that
has already been lost.
A wave of transformative but
hugely expensive treatments is challenging the budgets of health systems in
wealthy nations. Now countries with far fewer resources are wrestling with how
to cover the therapies.
Suhellen
Oliveira Da Silva was six months pregnant when she learned that the child she was carrying had the same disease that had left
her firstborn son paralyzed and nearly mute. But this time, there was a
treatment available that could make a profound difference. This baby could live
a normal life.
The problem was the price:
The treatment cost the equivalent of $1.7 million, and the public health system
in Brazil, where the family lives, was refusing to pay for it.
So Ms. Da
Silva went to court — and won. A judge ruled that the government had to buy the
therapy for her younger son, Levi.
Today, Levi, 2, chats and
claps and crawls, all things his older brother Lorenzo, 10, has never been able
to do.
The treatment, called Zolgensma, a one-time infusion, is among the first in a new
class of cutting-edge gene therapies that offer enormous promise for people
with fatal or debilitating conditions — at hugely expensive prices. Its maker,
the pharmaceutical company Novartis, has negotiated deals with national health
systems and insurers to get the drug covered in many of the richest countries.
Now, with its sales slowing,
the company is pushing to get broad coverage in middle-income countries such as
Brazil, where public health systems are often fragile and underfunded.
Zolgensma,
which treats a rare genetic disorder known as spinal muscular atrophy, or
S.M.A., was for a time the world’s most expensive treatment. It has become a
closely watched test of whether such therapies can win broad coverage around
the globe, and what the trade-offs might be.
Brazil’s experience with Zolgensma shows the challenges that the breathtaking
prices of these therapies will pose for governments and insurers with limited
budgets. Those challenges are poised to multiply in the next few years as more
such treatments become available for larger groups of patients.
After more than 100
successful lawsuits from families forcing the Brazilian public health system to
pay for the treatment for their children, the government announced
in December that it would begin covering Zolgensma by default for infants with the most severe cases
of S.M.A. later this year.
The government has agreed to
pay the equivalent of about $1 million for each treatment — much less than what
some other governments are paying, but still a staggering sum for Brazil’s
strained health system.
After his mother won access
to Zolgensma in the courts, Levi received the therapy
and can now chat, clap and crawl, all things Lorenzo has never been able to do.
Levi, right, put a toy in
his brother’s hand. While Levi has not met all of the normal developmental
milestones of a child his age, he is mobile and talkative.
At a government hearing on
the coverage issue, a congresswoman, Adriana Ventura, expressed sympathy for
the families seeking the treatment, but said, “We also cannot be irresponsible
and approve something that is not sustainable in the long term.”
She added the concern is
that “in order to give to one, you have to take the basics from millions of
others.”
The expenditures for Zolgensma have already gobbled up a hugely disproportionate
share of resources. An
analysis led by a researcher at Brazil’s drug regulator found
that the court-ordered expenditures in Zolgensma’s
first 14 months of availability in Brazil could have paid for more than four
million doses of the Covid-19 vaccine.
Over the past decade,
wealthy countries have devoted a growing share of their pharmaceutical budgets
to paying for expensive drugs that treat a tiny fraction of their citizens.
Their spending on so-called specialty drugs, which treat rare and often serious
diseases and can come with enormous price tags, now represents about half of
their drug expenditures. And it is expected to keep growing.
“The situation simply isn’t
sustainable,” said Ruth Lopert, a health economist at
George Washington University. “Countries simply aren’t going to be able to
afford these products, at the prices that are being asked.”
Among the most unaffordable
are gene therapies such as Zolgensma that promise to
transform inherited disorders with a one-time treatment. Zolgensma’s
list price of $2.1 million in the United States in 2019, believed to be the
highest ever when it was set, has since been surpassed four times, and many
more treatments expected to be as expensive are on the horizon.
“This is the long hoped-for
wave of innovation that will help address some life-threatening and fatal
conditions,” said Dr. Steven Pearson, president of
the Institute for Clinical and Economic Review, which assesses the value of
medicines. “But if it comes all at once and the payments can’t be stretched
out, it will have a crushing effect.”
Wealthy countries have
already been grappling with paying for the new therapies.
In
Europe, a product approved for a deadly neurological disorder known as
metachromatic leukodystrophy was given list prices of up to $3.9 million. Germany’s
health system last year agreed to pay for it at a discounted $2.6 million.
Recife, Brazil. After
families filed more than 100 lawsuits over the payment of the drug, the
government announced it would begin covering Zolgensma
for eligible infants this year.
In the United States, the biotechnology company Bluebird Bio last year set price
tags of $2.8 million when it won approvals to treat an inherited blood disorder
called beta thalassemia and $3 million to treat a fatal neurological condition
known as cerebral adrenoleukodystrophy. When European health systems
previously refused to pay what Bluebird was asking for the products, the
company withdrew them from the continent.
While there are more than
six million people worldwide with sickle cell, most of whom are living in
sub-Saharan Africa, the initial launches are expected to focus on tens of
thousands of patients in the United States and Europe.
Record-setting price tags
for gene therapies have largely escaped the criticism that has followed other
industry pricing decisions. The sentiment reflects just how powerful many of
the gene therapies are — doctors sometimes go as far as to call them cures —
and their unique position as one-time treatments. Such
a therapy has just one chance to earn money, and in some cases can replace
chronic treatments that would otherwise be given for the rest of a patient’s
life at a much higher cumulative cost.
Still, for middle-income
countries, “if benefits of these therapies are immediate in terms of health but
the potential savings happen in the future, that math may not work for them,”
said Rena Conti, a health economist at the Questrom School of Business at
Boston University.
Tay Salimullah,
a Novartis executive, said the company works closely with governments and
health plans considering whether to cover Zolgensma,
in some cases allowing them to spread out their payments over time, like a
mortgage, or offering
a price cut if the treatment doesn’t work.
In Brazil, the agreement
with Novartis calls for the government to split payments for each treatment
into five equal parts over four years. If a patient dies, must be permanently
ventilated or is unable to maintain certain motor functions two years after
receiving Zolgensma, the government will not be
required to make the subsequent payments.
‘This Kid Has a Future’
Until
six years ago, there were no approved treatments for S.M.A., which affects
about one in 10,000 newborns. Infants with the most
severe form of the disorder were sent home and their families were told to
prepare for them to die.
Zolgensma and
two other drugs approved since 2016 have opened up once unimaginable
possibilities for S.M.A. patients. “I’m telling parents to keep putting money
in their college fund because this kid has a future,” said Dr.
Thomas Crawford, who treats S.M.A. patients at Johns Hopkins Medicine.
Zolgensma
works by replacing the missing or nonfunctioning gene
causing S.M.A. with a working copy of the gene. It has been given to more than
2,500 children and approved for use in 46 countries. Novartis says more than 35
of those countries have “access pathways” in place.
Studies show Zolgensma can stop infants and toddlers from continuing to
lose nerve cells that control muscle movement, preventing further decline, but
it cannot restore motor or muscle function that older children have already
lost.
A nurse helped Levi with his
physical therapy at home. Studies show Zolgensma can prevent further decline, but cannot
restore motor or muscle function that has already been lost.
If Zolgensma
is given soon after birth, children may develop no significant disabilities.
Children who receive the drug when they are a little older may avoid a feeding
or breathing tube, and may be capable of some movement, rather than a life
spent immobile like Lorenzo.
Patients have in most cases
been able to access Zolgensma without issue in the
United States, Britain and Canada, according to doctors and patient groups
there. But several American parents and their attorneys described monthslong
delays when health plans temporarily balked, during which children started
showing signs of S.M.A. as they waited for treatment.
In Brazil, where more than
half the population relies on the public health system, families seeking Zolgensma for their children tried to raise funds through crowdfunding
websites or obtain it without charge through a clinical trial.
But most often, they turned
to the courts. As of November, judges had forced the Brazilian health system to
pay for 102 Zolgensma treatments at an average cost
equivalent to $1.6 million, according to the Ministry of Health.
A Right to Health
Ms. Da Silva had never heard
of S.M.A. when Lorenzo was diagnosed at 6 months old, in 2013. He had been
developing normally, and then his progress suddenly stopped. Doctors said there
was nothing to be done.
When Ms. Da
Silva learned in 2019 she was unexpectedly pregnant with Levi, doctors said he
might never have disabilities from S.M.A. if she could get Zolgensma
for him soon after he was born.
The family had been
struggling to make ends meet. Ms. Da Silva had quit her job as a travel agent
in order to fight for full-time home care and therapies for Lorenzo; her
husband, Azen Balbino, had
spells of unemployment in Brazil’s recession. They knew they would need to rely
on a process Brazilians call judicilizacão, in which
they effectively sue the federal government by invoking the constitutionally
protected right to health to force the public system to pay for a medication or
therapy that it would not otherwise provide.
While Ms. Da
Silva was still pregnant, she enlisted the help of Viviane Guimarães,
a lawyer in her northern Brazilian city of Recife who agreed to take her case.
(Lawyers in such court battles typically do not charge the S.M.A. families they
represent. When the government loses a case, it can be ordered to pay a fee to
the successful family’s lawyer, but that payment is withheld when the
government appeals a decision, as has happened with Levi’s case.)
Levi, right, receives daily
occupational and physical therapy and continues to progress in physical
development. It’s unclear how much damage the disease has already done in spite
of the treatments he has received.
A home-care nurse picked out
vitamins for Lorenzo from a drawer of medications and supplies.
When Ms. Guimarães
stood before the judge to make the case for a therapy with a huge cost, she
argued that it would save the government money compared with other drugs Levi
would need to take for life and with the cost of all the care he would need
without it.
Lorenzo receives three kinds
of therapy every day. He watches cartoons while a physiotherapist makes a
twice-daily visit to pummel on his chest and suction the secretions that would
otherwise suffocate him. He communicates with Ms. Da
Silva through a breathy whisper and by blinking and squinching the cheek he can
still move. While this happens, Levi clambers over Lorenzo’s inert legs,
singing along with the television and imperiously giving orders for things such
as Popsicles and cookies to the health aide, one of three who take shifts to
stand by Lorenzo’s bed 24 hours a day.
While Levi has not met all
of the normal developmental milestones of a child his age, he is mobile and talkative.
He has daily occupational and physical therapy and continues to progress in
physical development.
When Ms. Guimarães
won a favorable judgment in Levi’s court battle, the
federal government had to set aside the money to purchase Zolgensma.
Ms. Da Silva dashed to the bank to get the money sent by wire transfer to a
Novartis account in Ireland, triggering the shipment of the medication. She and
her husband rushed to São Paulo with Levi to be on standby at a hospital
willing to do the infusion. He received the tiny vial of 47.8 milliliters of Zolgensma at 16
months old.
Every time she sees her two
boys together, Ms. Da Silva is reminded of the stunning power of Zolgensma. Her happiest moments, she said, come when she’s
with Levi and he reaches up, pushes on her cheeks to get her attention and
demands, “Mamãe, Mamãe”
like any other toddler.
“Levi speaks like a child
who doesn’t have S.M.A.,” she said.
Few Resources to Spare
Novartis has so far brought
in $3.7 billion in revenue from Zolgensma, charging different
prices in different places based on its agreements with health systems and
insurers. The company said it determines its local prices based on factors
including a country’s gross domestic product.
Countries have negotiated
lower prices than the $2.1 million price tag that captured headlines. South
Korea, for example, won’t pay more than the equivalent of $1.5
million per patient.
The treatment is one of
Novartis’s top sellers, but it has not become a mega-blockbuster in part
because so few patients are eligible for it. And sales have begun to slow.
Middle-income countries like
Brazil could open the door to many more patients.
Novartis has already won
coverage for Zolgensma in Russia, Egypt and, most
recently, Argentina, where the government announced this
month that it had agreed to pay $1.3 million per treatment.
Novartis’s chief executive, Dr. Vas Narasimhan, last
year
named three middle-income countries — Brazil, Turkey and India — as key
expansion markets for Zolgensma. The company remains
in negotiations over access to the treatment in more than 10 countries,
including Ecuador.
In Brazil, the government
has agreed to cover the treatment only for babies with the most severe form of
S.M.A. who can breathe independently for at least most of the day. They must
also be under 6 months old.
Under the deal with
Novartis, the Brazilian government has agreed to pay for Zolgensma
for no more than 250 babies over the next two years. If demand is higher than
that, Novartis will chip in with 40 free treatments. At most, assuming a steady
pace of treatments, the government would spend the equivalent of about $50
million for this first group of children this year and a total of $200 million
over the four years after that.
In comparison, a Brazilian
program known as the people’s drugstore had a budget last year equivalent to
about $380 million to serve over 21 million people, providing free access to
drugs used to treat conditions such as asthma, diabetes and high blood
pressure. The government allocated another $430 million last year for its
program for H.I.V. and other sexually transmitted infections.
The public health system
provides health care to more than half of the roughly 216 million people in
Brazil. In rural areas of the country, health centers
may have a single doctor. Clinics and hospitals in low-income areas lack basic
supplies and technology more sophisticated than X-ray machines.
“We’re talking about a super
expensive medication. But when you go to the hospital, the nurse doesn’t even
have a pair of latex gloves,” said Ms. Guimarães, the
Da Silva family lawyer.
“But people are going to
have to get comfortable with the debate,” she added, “because there are going
to be many more therapies like this.”