(Reuters Breakingviews) - Novartis's gene therapy for spinal muscular atrop...
Pharmaceutical tablets and capsules in foil strips are arranged on a table in this picture illustration taken in Ljubljana September 18, 2013. REUTERS/Srdjan Zivulovic
Health economists often measure a therapy’s value by putting a value of an individual living one year of good health. Countries, and increasingly insurers, use this approach. Novartis Chief Executive Vas Narasimhan said last month that Zolgensma, which is a one-time treatment, was cost-effective at up to a $5 million price tag, based on the assumption that a year of hospital-free healthy existence is worth $500,000.
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Three reasons a wonder drug can cost $5 mlnNovartis’s gene therapy for a deadly disease looks likely to set a record. There are justifiable factors, like the value it delivers and drugmakers’ high development costs. Then there are less palatable ones, including an inefficient U.S. market with a tolerance for high prices.
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