Celgene Passes On Oncology Price Cap Program

Celgene will not follow the lead of Amgen and Genentech by instituting a price cap on its oncology drugs.

Celgene will not follow in the footsteps of Amgen and Genentech - at least in the near term - by instituting a price cap program on oncologics. The company does not plan to cap the price for Revlimid (lenalidomide), CEO Sol Barer said Oct. 26.

"For Revlimid, we constantly evaluate the situation, but at the present time, it doesn't make very much sense for us to do that," Barer said during the company's third quarter earnings call, responding to an analyst question about Amgen and Genentech's pricing programs.

"There are special circumstances around the duration of use of those products, dosages...that maybe lend them to caps. I don't see that in the cards certainly in the near future for us at Celgene with our products."

However, he noted that Celgene participates in other types of patient assistance programs.

Both Amgen and Genentech recently announced plans for patient assistance programs for their respective oncologics Vectibix (panitumumab) and Avastin (bevacizumab) (¹ (Also see "Genentech Adds Patient Assistance Program Along With Avastin Lung Cancer Indication" - Pink Sheet, 12 Oct, 2006.)).

Under Amgen's Oncology Assistance Program, the "Vectibix Cap" provides panitumumab at no charge to any patients whose out-of-pocket costs for the oncologic exceed 5% of their gross adjusted annual income. Genentech's plan caps annual bevacizumab expenditure at $55,000.

Revlimid's indications were expanded in June to include second-line treatment of multiple myeloma in combination with dexamethasone (² (Also see "Celgene’s Revlimid Approved For Second-Line Multiple Myeloma" - Pink Sheet, 30 Jun, 2006.)).

Revlimid generated sales of $101.3 mil. in the third quarter; the oncologic drove Celgene's consolidated revenue up 89.1% to $244.8 mil. compared to the prior-year period.

- Jonathan M. Block ([email protected])