Analysis Group Models Cost-Effectiveness of CAR-T Therapy
April 2, 2018
Analysis Group, working with Novartis, developed an economic model to estimate cost effectiveness and value-based prices for Kymriah (tisagenlecleucel), an innovative treatment for pediatric and young adult patients with relapsed or refractory acute lymphoblastic lymphoma (ALL). Kymriah, a chimeric antigen receptor T-cell (CAR-T) therapy, enables personalized medicine, with each treatment being made from a patient's own white blood cells. Because the treatment is individualized and only needs to be administered once in a patient's lifetime, establishing value-based prices through cost effectiveness evaluation presents new challenges.
Novartis worked with an Analysis Group team including Managing Principal Eric Wu and Vice President Hongbo Yang to construct a cost-effectiveness model for evaluating the value-based prices of Kymriah under different willingness-to-pay thresholds. The results were presented at the 2017 annual meeting of the American Society of Hematology (ASH). The final list price of Kymriah was below the value-based prices estimated from the model, using commonly cited thresholds. A subsequent analysis conducted by the Institute for Clinical and Economic Review (ICER) also found that Kymriah is cost-effective compared to comparators and that Kymriah's price aligns with its clinical value.