Friday, January 9, 2015

A HISTORIC FIRST; F.D.A. Panel approves generic copy of costly Biologic Drug

An expert panel unanimously recommended on Wednesday that the Food and Drug Administration approve a cheaper copy of a special drug used in cancer therapy, paving the way for alternatives to an entire class of complex and costly drugs to enter the United States market.
Most brand-name drugs eventually lose their patent protection, opening the market to lower-priced generic products. But one class of drugs, known as biologics, which includes some of the most expensive medications in the world, has been insulated from the competition of cheaper copies for years.
That changed when the 14 members of the panel, convened by the F.D.A., agreed to recommend approval of a drug known as EP2006, which helps the body make white blood cells and is a close copy of an existing medication called Neupogen, also called filgrastim. EP2006 was approved in Europe in 2009 as Zarzio but has not been used in the United States, in part because no regulatory pathway existed to bring copies of biologic drugs to market.
“This is kind of like cutting the ribbon to open a major new road,” said Ronny Gal, a senior research analyst who focuses on specialty pharmaceuticals at Sanford C. Bernstein & Company. “It is literally a new concept in medicine.”
Biologic drugs are so called because they are made out of living cells and not synthesized from chemicals as ordinary drugs are. Some examples of popular biologic drugs are Remicade, Humira and Enbrel for autoimmune disease, and Herceptin, Rituxan and Avastin for cancer.
If the F.D.A. follows the panel’s advice, and it usually does, though it does not have to, the move would usher in an era of competition for biologics and would eventually reduce prices, Mr. Gal said. Pharmaceutical companies have been criticized recently for the high prices of new drugs, and biologics are particularly expensive; Avastin, for example, can cost more than $50,000 a year.
Express Scripts, the nation’s largest manager of prescription drug benefits, estimates that the introduction of EP2006, to be called Zarxio in the United States, could save $5.7 billion in drug costs over the next 10 years.

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