Cancer Drugs Offer Hope, but Expense Worries Doctors and Patients
New York Times
Ten thousand dollars once seemed a lot to pay for a few months' supply of a
drug.
No more. Avastin. Erbitux. Gleevec. Herceptin. Rituxan. Tarceva. These are
among the first in a wave of new drugs giving hope to millions of cancer
patients by treating the disease in new ways, like blocking the blood
vessels that feed tumors.
But they are all highly expensive, up to $100,000 for a course of treatment
that lasts a few months. That is hundreds of times the cost of older, more
toxic cancer drugs, and several times the annual cost of AIDS drugs, whose
prices caused widespread anger during the 1990's.
And except for Gleevec, a leukemia drug from Novartis that has produced
spectacular results, the new cancer drugs help most patients only
marginally, prolonging life by a few weeks or months.
For now, the high-priced cancer drugs are a relatively small part of overall
medical spending. But some doctors warn that with more new drugs coming, the
use of superexpensive therapies may further fuel the runaway costs of the
health care system.
Dr. Leonard Saltz, a colon cancer specialist at Memorial Sloan-Kettering
Cancer Center in New York, said patients might face rationing of care if
costs continued to rise.
"I don't know how much money there is in the till to pay for all this, but I
have to be worried there isn't enough," Dr. Saltz said. "There is a limit as
a society to how much we'll be able to spend on each patient."
Health care economists say the rising costs of the new cancer treatments and
other drugs will force difficult questions on doctors and policy makers.
Should patients be guaranteed access to drugs no matter what their cost? And
should physicians be encouraged to consider cost when they decide on
treatment - something most doctors in this country now say they do not do?
Drug companies say many factors drive the pricing of their drugs, including
the high cost of research and development, complex and expensive
manufacturing processes and the value the drugs provide for patients.
As doctors learn how to use combinations of new drugs in treatment, the
therapies will extend the lives of more and more patients, said Dr. Susan
Desmond-Hellmann, president for product development at Genentech, a
biotechnology company in South San Francisco, Calif. The company makes
several of the new drugs, including Avastin, that are widely considered the
most promising. A year's supply of the drug for an average colon cancer
patient costs $54,000.
"It's a very reasonable thing to ask about the cost of therapies," Dr.
Hellmann said. "But I just don't want people to lose sight of how meaningful
the changes in treatment are."
For now, most patients are able to obtain the new drugs, either through
insurance coverage or assistance programs. Lung cancer was diagnosed in
Shawnette Treat, 37, early last year and she was told her life expectancy
was less than two years. She now takes Tarceva, which costs almost $90 a
day, or $31,000 a year.
Ms. Treat, who lives with her husband and two children in Melbourne, Ark.,
has private insurance, which covers 80 percent of Tarceva's cost. But she
stopped working in March after undergoing a double mastectomy when the
cancer spread. She said she could not afford her insurer's $500 monthly
co-payment for Tarceva.
"My husband's the only one working, and we have bills and stuff that we have
to pay, and it takes all he makes for us to make it," Ms. Treat said. "Five
hundred dollars is a lot to us a month."
The Patient Advocate Foundation, a nonprofit group based in Newport News,
Va., that helps people obtain medical care, is covering the monthly payment,
Ms. Treat said. "I wouldn't be able to take it if they didn't pay my
co-pay."
But the foundation covers only a few kinds of cancer and does not directly
assist people who are uninsured, said Beth Darnley, the foundation's chief
program officer. Those patients must apply to Medicaid or to the companies
for discounted drugs.
In some cases, patients are discontinuing treatments or taking other drastic
steps, doctors say.
Dr. Angela Dispenzieri, an oncologist at the Mayo Clinic who specializes in
treating a blood cancer called multiple myeloma, said she avoided discussing
a drug called Thalomid with patients who could not afford it. The drug costs
$25,000 a year and will not be covered by Medicare until next year.
"I don't want them to feel bad," she said.
If history is any guide, health care professionals say, patients, doctors
and lawmakers will not want to confront questions about how the medical
system should deal with the cost of the new drugs.
"There's not really any incentive in the system to be more rational," said
Dr. John Hornberger, an adjunct clinical professor of medicine at Stanford
University and a practicing physician who studies drug costs.
Policy makers in the United States, unlike those in Britain and some other
countries, do not measure the cost-effectiveness of new drugs, Dr.
Hornberger said. The government does not control drug prices, and Medicare
is prohibited from making coverage decisions based on cost; it must base its
decisions solely on the drugs' performance.
In terms of the cost per life saved, cholesterol-lowering drugs like
Lipitor, which reduce heart attacks and strokes, are probably far more
effective than cancer drugs, Dr. Hornberger said. But cancer is a uniquely
frightening disease, and people will pay almost any price for treatments.
Also, most cancer drugs do not have good substitutes; if a drug works - even
marginally - patients and doctors clamor for it, and insurers have little
choice but to cover it, Dr. Hornberger said.
While some of the new drugs are difficult to make, their prices are
unrelated to their manufacturing costs, said Geoffrey Porges, a
biotechnology analyst at Sanford C. Bernstein & Company. Drug makers charge
what they think the market will accept, he said.
"It's sort of one of those things where everyone looks over their shoulder
at everyone else, says, 'He started it, it wasn't me,' and it builds," Mr.
Porges said.
Advocacy groups for cancer patients have been mostly silent on drug prices
because pressing drug makers might discourage them from making the
billion-dollar investments necessary to find new drugs.
Doctors also do not want to consider cost, said Dr. Eric Nadler, a
researcher at Harvard Medical School who has studied the attitudes of
oncologists on the issue. In his study, about 80 percent of cancer doctors
said they would prescribe a drug costing up to $70,000 if it would extend a
patient's life just two months longer than the standard treatment.
In fact, the way doctors are reimbursed for cancer drugs gives them an
incentive to prescribe the most expensive treatments. The drugs are
generally given intravenously in a hospital or doctors' office, and Medicare
pays doctors for the cost of the drug plus a slight extra fee to help cover
their overhead. The higher the price of the drug, the greater the extra fee.
As a result of these forces, drug makers have faced only scattered
opposition to the rising prices of new cancer treatments. The upward spiral
started in 1992, when Bristol-Myers Squibb began charging $4,000 a year for
Taxol, a breast cancer treatment that was among the first so-called targeted
drugs, which are aimed at destroying tumors without the side effects of
traditional chemotherapy.
At the time, some lawmakers and patient advocates complained, noting that
Taxol had been invented at taxpayer expense at the National Cancer
Institute. But Bristol held firm.
Then in 1998, Genentech began charging $20,000 a year for Herceptin, another
targeted therapy for breast cancer. The price attracted notice, but little
criticism.
Four years later, Bristol and ImClone Systems began charging as much as
$100,000 a year for Erbitux, a drug for advanced colon cancer. (Because
different patients have different treatment cycles, these prices are
averages, as computed by the companies or financial analysts.)
For drug makers, the high prices have been a boon. Shares of Genentech have
quadrupled in the last two years. Dr. Hellman of Genentech noted that the
company began researching Avastin in 1989, at a time when many scientists
doubted it could work. Genentech spent hundreds of millions of dollars
researching the drug, and decided to build a plant to manufacture it years
before receiving approval to sell Avastin in 2004.
Considering the expense and risk Genentech incurred - as well as the costs
of similar treatment - Avastin is fairly priced, Dr. Hellman said.
"It's a giant breakthrough therapy," she said. "The value to patients is
very high."
Cancer drugs will be the fastest-growing part of the drug market for the
next five years, with costs rising 20 percent a year, more than double
overall drug spending, analysts say. Every major drug maker is now investing
heavily in oncology, rushing to capitalize on new research about the way
cancer cells reproduce. Most of the new drugs attack the proteins that help
tumors grow, and most are produced by specially engineered bacteria, unlike
the older drugs which can be chemically synthesized.
Cancer drugs are not the only expensive new treatments; some drugs for
rheumatoid arthritis cost more than $10,000 a year. But the gap between
performance and cost is especially pronounced for the cancer treatments. A
Genentech study of colon cancer patients showed that a combination of
Avastin and standard drug therapy extended the life of the average patient
less than 5 months - to 20.3 months from 15.6 months - compared with the
standard treatment. With the notable exception of Gleevec, from Novartis,
which has been widely praised for prolonging the lives of leukemia patients,
most other drugs show even smaller improvements in survival.
Some oncologists are beginning to question cancer drug prices publicly. Dr.
Saltz of Memorial Sloan-Kettering Cancer Center said doctors must consider
drug cost when they discuss treatments with patients.
"We'd like to feel that it's wrong to put a value on human life and that we
as a society won't do it," he said, "but we do it every day."