Hi Group,
I have posted an article that mentions Gleevec and other drug companes who
are developing like drugs. I hope that is an "allowed" post, because I think
that information sharing about pertinent topics are a function of support
groups.
Warm Regards,
Kristin
Drug Cos. Intensify Cancer Treatment Push
Wed Mar 16, 2:33 PM ET
By THERESA AGOVINO, AP Business Writer
NEW YORK - The war on cancer has some fortified soldiers. Some of the
nation's biggest drug companies are investing an increasing amount of
resources toward finding treatments for the disease.
Cancer research has been a hallmark of companies such as Bristol-Myers
Squibb Co. and AstraZeneca PLC. But over the last few years, others
including Wyeth, Schering-Plough Corp., GlaxoSmithKline PLC and most notably
Merck & Co. have been intensifying their work on cancer medicines. They've
purchased smaller, cancer-focused drug makers; formed licensing
arrangements; added staff and created specialized research centers.
The increasing commitment to cancer treatments grows out of a confluence of
economic and scientific factors. Company executives say the odds of finding
suitable drug candidates have risen significantly in the last few years with
the mapping of the human genome and other technological advances. And new
cancer treatments can command very high prices and generate substantial
revenue, since there is little competition in the field.
Novartis SA's Gleevec, introduced in 2001, treats a form of leukemia as well
as rare tumors of the gastrointestinal tract. It costs about $2,450 a month
wholesale per patient, and brought in $1.6 billion in sales last year.
Erbitux, a treatment for colorectal cancer introduced last year by
Bristol-Myers and ImClone Systems Inc., carries a wholesale cost of between
$18,000 to $40,000 a month per patient. Analysts predict Erbitux will also
be a blockbuster.
Insurance typically covers the cost of treatment, but there's still been
controversy over some cancer drugs' cost. Companies have programs for
patients who lack insurance and can't afford the drugs. Still, those prices
create an attractive market.
"Drug companies are seeing that cancer can be lucrative," said David
Moskowitz, an analyst with Friedman, Billings, Ramsey. "Look at Erbitux and
Gleevec. They may be for small markets, but the prices will let the
companies make money."
Whether the increased investment will lead to a rash of new cancer products
remains to be seen. Drug development is still a risky business; cancer
accounts for the second-largest part of Pfizer Inc.'s research budget but
that hasn't transformed the company into a powerhouse in that area.
Pfizer does have a promising product for patients with the same rare tumors
treated by Gleevec but who have become resistant to that drug. The company
may file for federal approval of the drug later this year. Bert Hazlett, an
analyst with Suntrust Robinson Humphrey, said the drug's sales potential
could reach $800 million to $1 billion if it is approved for other types of
cancer.
Wyeth has a product for kidney cancer it intends to seek approval for next
year. Meanwhile, Novartis SA plans to seek approval for a drug for
colorectal cancer either late this year or in early 2005. Merck, always a
force in the vaccine industry, has an inoculation for cervical cancer that
it plans to seek approval of this year.
"There has just been an explosion of our understanding of cancer since human
genome," said Dr. Lee F. Allen, vice president of oncology clinical research
at Wyeth, which currently sells two cancer drugs.
Two and a half years ago, Wyeth created a center of excellence to research
cancer, placing everyone working on the disease in Cambridge, Mass. This
allowed the group to streamline its approach and work with the academic
community in the area. It currently has 13 cancer drugs in clinical
development, triple the amount from three years ago.
When GlaxoSmithKline was formed through a merger in 2000, the company had
two cancer drugs. Now, with a new focus and additional spending, the company
is developing eight drugs for cancer treatment, plus three for the treatment
of side effects, one vaccine and three therapeutic vaccines.
Perhaps the most pronounced efforts are at Merck, which doesn't sell any
cancer treatments although it does have Emend, a product for nausea caused
by chemotherapy. In the last 18 months, Merck purchased Aton Pharma Inc., a
privately held biotech company focused on cancer treatments, and it has
signed deals with two smaller companies to develop oncology drugs.
A deeper understanding of cancer and advances in technology have contributed
to the shift in drug companies' focus, said Dr. Stephen H. Friend, Merck's
executive vice president of advanced technology and oncology.
"Now we have the tools that allow us to see what is going in cancer cells,"
Friend said. "We've gone from uncertainty about the disease to having more
clues about what we can do."
Friend says it is possible to scan an entire cancer cell to look for
specific mutations that provide researches an idea of which compounds might
be most effective in treating the disease. Such tools mean it can take just
two to five years to bring a compound into clinical development, down from 5
years to 10 years just a few years ago.
Such improvement brings business benefits. Industry experts say it costs
over $800 million to develop a drug. Hastening the development process will
reduce costs. That's especially important for cancer drugs because they have
smaller markets than other diseases; there are many more people who suffer
from high blood pressure, for example, than there are people with most types
of cancer.
Cancer drug development already has some economic advantages - trials are
usually shorter and require fewer patients than drugs to treat other
conditions. For example, Pfizer's Phase III trial for its promising cancer
drug contained less than 400 patients. A typical Phase III study has between
1,000 and 5,000 patients.
The Food and Drug Administration (news - web sites) also has expedited
approval of drugs for cancer and other diseases life-threatening with less
clinical testing than typically required. The companies do have to continue
to study the drugs after approval.
Another advantage to selling cancer drugs is that the smaller patient
populations allows for more targeted marketing, "The marketing is less
expensive because it is more focused," said Dr. Joerg Reinhardt, head of
development at Novartis.