TESARO's (TSRO -10.6%) victory lap for the U.S. launch of PARP inhibitor Zejula (niraparib) has turned into a stumble out of the gate. Shares are down on more than a 75% spike in volume over investors' apparent trepidation with the price.
Yesterday, the company announced that Zejula's wholesales acquisition cost (WAC) will be $9,833/month or ~$118K/year, based on 200 mg/day. The recommended dose, per the package insert, is 300 mg/day, however, increasing the annual cost to ~$177,000 ($14,749.50/month). The bullish price is higher than Clovis Oncology's (CLVS +2.6%) Rubraca (rucaparib) at $165,000 ($13,750/mo.) and AstraZeneca's (AZN +0.7%) Lynparza (olaparib) at $134,400 ($11,200/mo.).
TESARO chief Lonnie Moulder says the reason that the WAC was quoted at the 200 mg/day level is that most patients (69%) are down-dosed over the initial one-to-three months of treatment as the oncologist "dials in" the dose (31% remain at 300 mg/day).