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Long-time Pharmacyclics bull says near-term off-label ibrutinib use may be curtailed

  • Wedbush's Gregory Wade, an bull from way back, strikes a slightly more cautious tone on Pharmacyclics (PCYC +1.4%), removing the shares from the Best Ideas list a day after ibrutinib won FDA approval in MCL.
  • "While subsequent compendium listings ... in RR CLL/SLL may lead to a change to this policy, we expect the absence of support of about $8900/patient contribution under Medicare Part D payment to be a significant barrier to the near-term use of the drug in the larger off-label settings," Wade says, adding that "there's a good amount of off-label expectations baked into some of the Street's expectations."
  • Outperform rating is maintained. Price target is $165.
  • Concerns about the drug's cost seem warranted. At $90+ per pill, Imbruvica will cost around $130K/year. Here's TheStreet's Adam Feuerstein outlining some mitigating factors: "PCYC is setting up a program to offer two months of free drug to patients who encounter reimbursement problems and co-payment assistance plans for patients who cannot afford the drug."
Comments (1)
  • xerxesone
    , contributor
    Comment (1) | Send Message
     
    Even if the drug is a heaven sent for CLL sufferers the cost of almost $9000 per month will make its use prohibitive. This is creating an enormous level of frustration in those that cannot afford a life saving therapy which will only be restricted to use by the upper wealthy minority. As usual, nobody wins.
    17 Nov 2013, 12:48 AM Reply Like
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