Wonder drug Gleevec can keep cancer patients alive longer. But can it keep the costs down?
Imatinib mesylate, commercially sold as Gleevec, has been found out to extend the lives of blood cancer patients for more than ten years. It is one of the many recent breakthroughs in medicine research.
However, with great research comes great prices. How much does Gleevec medication cost? And how will it affect the financially strapped?
Wonderful Drug At A Wonderless Price
Without insurance, according to one patient, medication with Gleevec could cost him $20,000 a month. He also spends $8,000 to $10,000 out of his pocket for the drug.
Imatinib cost $26,000/year back in 2001. Medicine prices put into account the cost of research, the total cost of production and of course the demand by the population at risk. The price was described as "high but fair" by Novartis, Gleevec's manufacturer.
The price has increased gradually through the years, incrementing by 10 percent to 20 percent annually. In 2014, it peaked at $132,000 per year and last year 2016, the annual prices soared to $146,000. Novartis cashed in $4.7 billion in 2015 for its patented Imatinib.
To put it in context, the average American's yearly salary in 2014 is around $35,000 for single people, and married couples with joint salaries get $117,795 a year.
One major factor for the high price is the exclusivity of the brand. While Novartis does not have full ownership of the drug, its high market share of the drug and lack of competition gives it the leeway to raise the prices.
Generics To The Rescue?
Gleevec isn't the only imatinib drug in the market. Its closest competitor was Sun Pharma, which was approved by the FDA in 2015 to manufacture its version of imatinib. Also, two new companies have sprung up, aiming for a slice of the imatinib market pie: Apotex Corporation and Teva Pharmaceutical Industries.
This is where generics can come in to cut the high costs down. In India, the generic version pegs the costs at $400 a year. In Canada (which already has an impressive health care) a version of the drug costs $8,800 a year this will soon enter the U.S. market.
"The cost to manufacture a one-year supply of 400-mg imatinib tablets is $159," wrote Dr. Hagop Kantarjian, one of the original Gleevec trial leaders. "Two years from now, the price of generic imatinib in the United States (or purchased from abroad) will be significantly lower, hopefully, less than $1,000/year," he added.
In their defense, drug companies stressed they don't always charge full price to insurance companies. They also countered that they also offer discounts and special coupons for patients who don't have insurance. Novartis says most patients pay less than $100 a month out of their own pockets.
