Barron's - USA (2020-10-12)

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October 12, 2020 BARRON’S 19


says Dr. Brenda Cooperstone, the


company’s rare-disease chief develop-


ment officer. If the prevalence turns


out to be significantly different than


expected, “we would of course revisit


the price,” Varma says.


He’s quick to add, however, that


“patients don’t actually pay the list


price.” What really matters to the


company, he says, “is whether patients


can access the therapy.” And that,


Pfizer says, is why it offers patient-


support programs—and why it’s suing


the federal government to expand


those programs.


Some researchers say there’s a sim-


pler fix: slash the price. But even if the


price is cut in half, “the cost to patients


would still be extraordinarily high”


under Medicare Part D, says Jonathan


Selib, Pfizer senior vice president for


global policy and public affairs.


Pfizer’s solution is to seek a legal


green light for two types of patient-


assistance programs: One would


directly cover tafamidis copays for


many Medicare Part D beneficiaries


prescribed the drug through copay


cards or coupons, and the other


would fund an independent charity


that would give copay assistance to


ATTR-CM patients. These programs


would help middle-income Medicare


patients who don’t qualify for other


types of assistance aimed at lower-in-


come patients, the company says,


such as an existing Pfizer program


that provides free drugs and a Medi-


care subsidy that helps cover pre-


scription costs.


The programs don’t constitute ille-


gal kickbacksand wouldn’t improp-


erly alter clinical decision-making,


the company says, in part because


tafamidis is the only FDA-approved


drug for ATTR-CM.


The defendants—the Department


of Health and Human Services and


its Office of Inspector General—have


not yet responded to the complaint in


court, and the inspector general’s


office declined to comment on the


case. In a late-September advisory


opinion, the inspector general said


that Pfizer’s proposed copay-assis-


tance program is “highly suspect”


under anti-kickback laws, but that it


couldn’t reach a definitive conclusion


on its legality because it hasn’t been


implemented.


The program would cover patients


with income up to 800% of the fed-


eral poverty level, which includes


more than 90% of all Medicare bene-


ficiaries, the inspector general wrote,


and would let “the Medicare program


and taxpayers bear the financial


brunt of an unchecked drug price.”


A central element of Pfizer’s argu-


ment might be easily adopted by other


drugmakers. Restrictions on drug


companies’ interactions with charities,


Pfizer claims, infringe on its First


Amendment rights. Regeneron


Pharmaceuticals (REGN) sounded a


similar note in a late-August effort to


dismiss government allegations that it


paid kickbacksthrough a copay foun-


dation, saying that preventing com-


munications with the charity restricts


its “First Amendment right to engage


in charitable speech.” The company


has said there is no merit to the


government’s complaint.


Pfizer’s Selib says the company isn’t


launching a “frontal assault on the


Anti-Kickback Statute” but asking for


a narrower interpretation of the law.


The U.S. attorney’s office in Boston,


which brought the recent cases involv-


ing drugmakers and copay charities,


declined to comment.


Pfizer and many patients and re-


searchers agree on one thing: Medicare


Part D is broken, exposing patients to


unreasonable drug costs. Pfizer would


like to see a cap on patients’ out-of-


pocket costs in Part D and is willing to


pay more into the program to help that


happen, Selib says.


David Mitchell, founder and presi-


dent of the nonprofit advocacy group


Patients for Affordable Drugs, priori-


tizes a broader solution. “Medicare


should be able to negotiate directly


with drug companies to lower drug


prices, like every other major country


does,” he says. “Those negotiated


prices should extend to all people, and


we should use our collective purchas-


ing power to get a better deal.”B


Medicare Part D


drug spending


grew nearly 10%


annually from


2009 to 2018,


reaching


$168 Bil


Pfizer posted a


billboard outside its


Manhattan head-


quarters last year


promoting aware-


ness of a debilitat-


ing heart condition.


bristle when they weigh the drug’s


cost against its medical benefits. Kazi


and his fellow researchers ran 10,


simulations, varying the assumptions


on rates of hospitalization, the drug’s


effectiveness, and other factors, and


found tafamidis to be cost-effective in


none of them. That’s an “extremely


unusual” result for a drug that has


real medical benefits, Kazi says. To


meet a traditional cost-effectiveness


threshold, the researchers found, the


drug’s price would have to fall 93%, to


about $16,500.


Pfizer says that traditional cost-


effectiveness analysis is flawed for


tafamidis and other rare-disease


drugs, in part because the effort to put


a price on additional years of life is


biased against older people with


shorter life expectancy.


Another factor in the drug’s price,


Varma says, is the rarity of ATTR-CM,


which Pfizer pegs as affecting about


100,000 people in the U.S. The FDA


agreed, giving tafamidis the “orphan


drug” designation, which provides


regulatory and financial incentives—


including seven years of market


exclusivity—to companies developing


rare-disease drugs.


But many doctors and researchers


question whether ATTR-CM is all that


rare. The 100,000 figure may be


a “substantial underestimate,” the


JAMA Cardiology article said. One


study, the researchers noted, sug-


gested that 13% of people hospitalized


with a common type of heart failure


have one form of ATTR-CM, and 1 in


25 Black Americans has a gene muta-


tion that can cause a hereditary form


of the disease.


Tafamidis is an example of broader


problems with the orphan-drug desig-


nation, which has become a “runaway


train” driving drug prices higher, says


Robin Feldman, a professor at the


University of California’s Hastings


College of the Law. The designation


was never intended to apply in cases


where companies can generate a large


profit, she says.


Pfizer highlighted growth in


Vyndaqel/Vyndamax sales at the top


of its second-quarter earnings release,


noting that the drug had global reve-


nue of $277 million. By the end of


2020, the company said in mid-


September, the drug should be a


nearly $1 billion global brand.


The drugmaker is conducting two


large-scale studies to better under-


John Roca Photography/MEGAstand the prevalence of ATTR-CM,

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