Lucentis’ First Patients Mostly Taken From Macugen, Visudyne & Avastin – Genentech
This article was originally published in The Pink Sheet Daily
Executive Summary
The company recorded $153 mil. in sales for the macular degeneration product in its first full quarter on the market.
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Genentech's wet age-related macular degeneration product Lucentis (ranibizumab) has leapt onto the market by taking share from existing therapies. "Increase in the Lucentis market share to date has come at the expense of other agents, most notably [Pfizer/OSI Pharmaceutical's] Macugen , but also from [Novartis/QLT's] Visudyne and [Genentech's own] Avastin ," Exec VP-Commercial Operations Ian Clark said during the company's third quarter earnings call Oct. 10. "Approximately 80% of Lucentis patients were existing patients who were switched to Lucentis and the remaining were newly diagnosed," the exec said. "Market research showed that Lucentis received approximately 50% share of newly diagnosed patients." Lucentis sales reached $153 mil. in its first full quarter on the market. Following approval on June 30, the company squeezed in $10 mil. through one day of sales in the second quarter (1 (Also see "Genentech Says Lucentis Cost Will Not Affect Access" - Pink Sheet, 13 Jul, 2006.)). The strong Lucentis launch led OSI to announce that it would curtail its research plans for Macugen, which has seen a drop in revenues since the Genentech product launched (2 (Also see "Pfizer/OSI To Curtail Macugen Research In Response To Genentech Competition" - Pink Sheet, 8 Aug, 2006.)). While not explicitly quantifying the amount of market share that Lucentis has taken, Clark noted that "there is some way to go yet within that penetration." One potential challenge for Genentech going forward is the limited market growth potential for Lucentis. "Market research also suggests that while we have seen rapid adoption of Lucentis, the total market has not grown," Clark said. "Over the course of the next several years, the existing patient pool will diminish and the sales for Lucentis will rely more heavily on acquiring and retaining newly diagnosed patients." However, the exec did note that "one could speculate that given the quality of the drug...you might see more patients being treated. But it's a pretty early stage to get into that at this point." Another challenge for Lucentis is public complaints about its price. Several academics have suggested that Avastin, which is approved for colorectal cancer and used off-label for macular degeneration, should be considered as a treatment because of its lower cost. The National Eye Institute is preparing to fund a study comparing the two products (3 (Also see "Lucentis Faces Academic Challenge" - Pink Sheet, 5 Oct, 2006.)). In the near term, the company has seen an issue with timely reimbursement for early prescribers. Clark noted, however, that "the reimbursement issue should continue to improve over time as more physicians receive payment for their initial Lucentis claims and gain competence in a smooth reimbursement process." "We're progressing pretty well with reimbursement. Most of the carriers have agreed to cover it, if not written then verbally," Clark said. "We think we made a solid start." - John Rancourt ([email protected]) |