Amgen Inc. announced on Wednesday that it would be selling its new leukemia drug for $178,000. This price tag makes it one of the most expensive cancer drugs in the market, and it will be available beginning Thursday.
The new drug, called Blincyto, will treat patients with a particular type of acute lymphoblastic leukemia (ALL), a cancer of the blood in which white blood cells multiply fast. The drug can be administered to those who had recovered from the condition yet suffered from remission from using other treatment options.
Amgen defended that the treatment reached that price tag as it has two courses that cost $89,000 each.
"We believe the price reflects the significant clinical, economic and humanistic value of the product to patients and the healthcare system, for an ultra-orphan population with a dramatic impact on a serious illness," Amgen said in an emailed statement to Businessweek.
Amgen received approval to sell the drug on Dec. 3 after its study showed that 32 percent of those who received the treatment for four weeks did not suffer from remission after almost seven months. Although the U.S. Food and Drug Administration identified some side effects such as headache, pyrexia, nausea, rash and others, the regulators believe that the benefit outweighs the risks.
Michael Yee, an analyst with RBC Capital Markets, is not surprised at the price and considered it reasonable because of its efficacy.
"The overall price of Blincyto is definitely on the high side for cancer drugs," Yee told Reuters.
Analysts predicted that Amgen could generate $100 million sales per year from the new leukemia drug, even if only half of the patients are qualified to receive the treatment.
