Lilly, Daiichi To Price Effient 18% Higher Than Plavix In US
15 Luglio 2009 - 7:39PM
Dow Jones News
Eli Lilly & Co.'s (LLY) and Daiichi Sankyo Co.'s (4568.TO)
new anti-clotting drug, Effient, will cost about 18% more than the
current gold standard, Plavix, the companies disclosed
Wednesday.
Lilly and Sankyo are betting they can justify the price premium
to insurers and patients by touting Effient's ability to prevent
more heart attacks than Plavix in a large clinical trial. It might
be a tough sell, however, because the same study showed Effient
increased the risk of bleeding versus Plavix.
Effient will cost about $5.45 per tablet when it hits pharmacy
shelves, which Lilly and Daiichi expect will happen by mid-August,
executives from the companies told Dow Jones Newswires on
Wednesday. In comparison, Plavix, which is co-marketed by
Sanofi-Aventis (SNY) and Bristol-Myers Squibb Co. (BMY), costs
about $4.60 per tablet. Retail prices for both drugs may be vary
from the wholesale price.
"We have robust data that tells us that Effient is going to be
very cost-effective," said Javan Collins, vice president of Lilly's
U.S. cardiovascular business.
The price premium may disappoint some on Wall Street who hoped
for more. On Monday, Leerink Swann analysts estimated Effient would
be priced at a 30% premium to Plavix.
Effient was approved last week by the U.S. Food and Drug
Administration, about a year after Lilly and Daiichi had initially
hoped for the green light. Wall Street enthusiasm for the drug has
waned due to the delay and the FDA's insistence that Effient's
prescribing label carry a prominent warning about the bleeding
risk, though some analysts still think peak annual sales could
exceed $1 billion. Plavix global sales were about $8.6 billion in
2008.
A Bristol-Myers spokeswoman declined to comment on the planned
pricing for Effient. Bristol has previously played down the
competitive risk of Effient, noting its bleeding risk and a
narrower range of approved uses than Plavix.
Indianapolis-based Lilly and Japan's Daiichi will be
co-promoting Effient in the U.S., with sales representatives from
both companies discussing the drug with hospitals, cardiologists
and primary-care doctors. Some, but not all, of Daiichi's 1,850
U.S. reps will be promoting Effient, said Lorenz Muller, Daiichi's
executive director of the U.S. thrombosis business. Lilly declined
to say how many sales reps would promote Effient.
Lilly will book U.S. revenues for Effient, but the companies are
splitting costs and Daiichi will derive alliance revenue from the
arrangement, the executives said. Effient is already on sale in
Europe.
The companies are also beginning talks with health insurers in
the hope of obtaining favorable coverage for the drug, with
relatively low out-of-pocket costs for insured members. The process
of securing positions on so-called "formularies" - or preferred
drug lists - could take months, however. Low-income and other
qualifying patients can receive financial assistance from the
companies.
The companies hope to impress insurers and payers with the
clinical data on Effient. The large trial was designed specifically
to test whether Effient was superior to Plavix; such a head-to-head
challenge isn't done for all experimental drugs, Lilly's Collins
noted. And the companies think they can convince payers and doctors
that the bleeding risk is manageable, with identifiable groups of
patients who should avoid the drug or be watched carefully because
of heightened risk.
"Our goal is to get payers to reimburse Effient in a similar
form and fashion to how they reimburse for Plavix, for the for
right patient type," said Daiichi's Muller.
But the pricing differential will change in a few years when
Plavix is set to lose U.S. patent protection, clearing the way for
cheaper generic copies. Drug-benefit plans will be tempted to steer
their members to generic Plavix, but Lilly and Daiichi still think
Effient will be a compelling option because of its proven efficacy
and other characteristics.
Lilly and Daiichi are actively talking to wholesale distributors
and retail pharmacies - including CVS Caremark Corp. (CVS) and
Walgreen Co. (WAG) - to ensure the drug is adequately stocked when
it first goes on sale.
The companies have no immediate plans for direct-to-consumer
advertising for Effient.
Lilly shares rose 32 cents to $33.23 Wednesday.
-Peter Loftus, Dow Jones Newswires; 215-656-8289;
peter.loftus@dowjones.com