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Prime Therapeutics to Supply Competing Therapies for HCV
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Prime Therapeutics LLC has entered into agreements with Gilead Sciences for the sale of ledipasvir/sofosbuvir, and with AbbVie for the sale of ombitasvir, paritaprevir and ritonavir tablets with dasabuvir tablets. The agreements enable both drugs to be available through the pharmacy company for the treatment of hepatitis C virus infection, according to a press release.
“We conducted negotiations with both companies and had every intention of signing an exclusive deal, but as negotiations unfolded, we took a different path,” David Lassen, chief clinical officer of Prime Therapeutics, told HCV Next via email. “We aren’t able to disclose specifics of the agreements, but it became clear that neither Gilead nor AbbVie wanted to be left off our formulary and that a co-preferred option was the best financial option for our clients and members.”
The FDA approved Harvoni, a combination of ledipasvir (Gilead) and sofosbuvir (Sovaldi, Gilead), in October 2014 and approved Viekira Pak (AbbVie), a combination of ombitasvir, paritaprevir and ritonavir tablets with dasabuvir tablets, in December 2014.
Prime Therapeutics negotiated with the manufacturers on behalf of its clients and 23 health plans, which represent over 25 million people, according to the release. The agreements both extend for 2 years, according to Lassen, and apply to “all of Prime’s owners, in their commercial book of business, including exchange business.”
Lassen further stated that the agreements are available to all of Prime’s commercial business and strategies for Medicare Part D are currently being determined at this time.
In regards to the pricing of the two drugs, Lassen stated that specifics, including price, could not be disclosed, but that the deals with Gilead and AbbVie provide “significant value and savings” for Prime’s members and their health plans.
“On average, we believe our co-preferred strategy will provide similar costs per therapy based on the individual patterns [including unique dosing and duration of therapy] each product is indicated for,” Lassen said.
According to the release, significant cost increases for members and health plans in 2014 were attributed to the HCV drugs. Prime predicts that the costs and utilization will peak in the first quarter of the year and then decline, leading to a flat cost trend for the hepatitis C population this year compared with last year’s.
“This prediction is based on Prime’s commercial population of 14.8 million members,” Lassen said. “Prime completed extensive research and found that testing rates have not risen dramatically, despite expanded guidelines in 2012. Assuming testing rates remain the same, we expect use of these drugs to peak toward the end of first quarter and then level off as more of our members complete their treatment. Certainly this could change if rates of testing change.”
This announcement comes after CVS Caremark said it would exclusively supply Gilead’s medications, Harvoni and Sovaldi, while Express Scripts bartered an exclusive arrangement with AbbVie to provide Viekira Pak.