Biotechnology Healthcare - July/August 2008 - (Page 40)

TABLE 2 Drug 2007 launches ambrisentan (Letairis) histrelin (Supprelin LA) lapatinib (Tykerb) nilotinib (Tasigna) 2008 launches certolizumab pegol (Cimzia) 2008 anticipated launches icatibant (Firazir) eltrombopag (Promacta) tetrabenazine (Xenazine) *Market unspecified Source: CVS 2007 KEY PRODUCTS: SPECIALTY DRUG PIPELINE Use Est. peak sales (millions) Competitor drugs Pulmonary arterial hypertension Precocious puberty Breast cancer Chronic myeloid leukemia $500 (global) $28* $1,200 (US) $400* bosentan (Tracleer) leuprolide (Lupron) trastuzumab (Herceptin) dasatinib (Sprycel) Crohn’s disease $525 (US) infliximab (Remicade), adalimumab (Humira) Hereditary angioedema Idiopathic thrombocytopenia Huntington’s disease $100 (global) $2,100* N/A First in class First in class First in class some of that decline could have been prevented through the use of aggressive treatment earlier in the progression of the disease (Schultz 2007). Although many studies have shown no relationship between the use of classic DMARDs and work disability (Doeglas 1995, Sokka 1999, Young 2002) or work loss (Merkesdal 2001, Ruof 2003), biologics have proven to be superior to all other RA medications, including DMARDs, in terms of reducing joint damage caused by RA (St. Clair 2004, Maini 2004). Studies of patients on biologic regimens have shown fewer lost days from work and increased employability (Kavanaugh 2004), reduced work loss (Bresnihan 2002, Bresnihan 2003), and increased workforce participation (Yelin 2003). EMPLOYER LOSSES It has been well documented that the most expensive consequence of RA is work productivity loss (Soderlin 2003, Pugner 2000, Hallert 2004). In the traditional view of employee health benefit packages, most employers focus only on out-of-pocket costs, which consist of group health payments (63 percent), incidental absences (16 percent), workers’ compensation (9 percent), short-term disability (8 percent), and long-term disability (4 percent) (IBI 2004). In that view, the financial impact of lost productivity from absences, which can be captured by FCA, is ignored. One analysis demonstrated that after the inclusion of indirect costs due to absences, 71 percent of the full costs of employee benefits were attributed to lost productivity resulting from absences and 19 percent to group health payments and workers’ compensation (IBI 2004). More employers now recognize the importance of health and productivity management to their organizations, enabled in part by researchers who are creating tools that will help employers to become better healthcare managers (Kessler 2006, Kessler 2004). Still, only a third of employers view strategies aimed at improving overall health and work productivity as useful (Rosenthal 2007). Though indirect costs may have a larger impact on profit margins, most employers tend to ignore them — mainly due to the lack of a “business case” resulting from measurement challenges — and focus primarily on their direct healthcare costs and insurance premiums (Rosenthal 2007). Thus, it is in the best interest of employers and third-party payers to continue to develop valid and reliable tools for measuring indirect costs, including those that accompany RA (Prasad 2004). This challenge is echoed by the absence of published reports on work-related disability from the employer perspective (Burton 2006). 40 BIOTECHNOLOGY HEALTHCARE · JULY/AUGUST 2008

Table of Contents Feed for the Digital Edition of Biotechnology Healthcare - July/August 2008

Biotechnology Healthcare - July/August 2008 Openers Contents Editorial/David B. Nash, MD, MBA Drug Track Health Plan Confidential Rheumatoid Arthritis A Decade of Trial, Error, False Starts, and Hope What Path Will Comparative Effectiveness Research Take? RA Therapies in Development: A New Generation of Relief Assessing the Full Impact of RA on Employers and Payers Stem Cells: Health Insurance You Can Bank On Specialty Pharmacy Employer to Employer Personalized Medicine Trends Clinical Briefs

Biotechnology Healthcare - July/August 2008

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