One of the interesting line items in this month’s Budget will be the one that sets out the increase – if any – in Pharmac’s base funding, to enable it to meet the huge cost of the new class of so called ‘biologics’ drugs for treating advanced skin cancer.
To date, Pharmac has withstood the intense public relations campaign that has been waged by the Merck, Sharp & Dohme (MSD) drug company to force Pharmac to commit to Keytruda, the first of these PD-1 immune system-driven, cancer inhibitor drugs to reach the market.
Recently, Keytruda’s main rival – Opdivo, from the Bristol Myers Squibb (BMS) drug company – has been approved for use in New Zealand.
Theoretically, this creates the situation that Pharmac has been angling for – whereby it has two rival products on the market that could supposedly be induced to compete against each other on price, thus enabling Pharmac to gain savings on the vast cost involved in subsidizing them. If that’s the tactic, it won’t happen soon enough to provide much relief. Overseas, both Opdivo and Keytruda have sustained sky-high prices, even while in competition. Read the rest of this entry »