Avastin, a drug currently used to treat colon cancer, could be an important new treatment for breast and lung cancer, as well.
But its manufacturer, Genentech, intends to charge roughly $100,000 a year for the treatment, a price usually only found on obscure drugs that treat rare diseases.
Patients Priced Out of the Market
Even with insurance coverage, co-payments for the drug could easily run as high as $20,000 a year, making the drug essentially unavailable to many cancer patients.
Usually, drug makers justify high prices by pointing to the costs of research. But Genentech is instead arguing that life-saving drugs are inherently valuable, and should therefore be appropriately costly.
Minimal Additional Cost, Vastly Higher Price
Avastin needs to be administered at higher doses to treat lung and breast cancer than it does for its current use as a colon cancer treatment. But Genentech plans to keep the unit price the same, even though the cost of producing the drug at a higher dose is minimal, resulting in the proposed hefty price tag.
Genentech sold more than $6 billion worth of drugs in 2005. If Avastin is approved for expanded use on breast and lung cancer, their sales are expected to reach $18 billion a year.