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Gene Therapy Cost Barriers: US Healthcare Faces $20.4 Billion Annual Spending Challenge

  • A new analysis reveals US annual spending on gene therapies is projected to reach $20.4 billion, with individual treatments like Zolgensma costing up to $2.1 million per patient.

  • Pharmacists are expected to play a crucial role in gene therapy management, with 75% of survey participants anticipating pharmacist oversight and 58% expecting Medicare to mandate pharmacist involvement.

  • Healthcare systems are exploring alternative payment models and strategic implementations to address the financial challenges while ensuring patient access to these breakthrough treatments.

The implementation of gene therapies in the United States faces significant financial hurdles despite their revolutionary potential in treating previously incurable diseases. A recent simulation model presented at the American Society of Health-System Pharmacists (ASHP) 2024 Midyear Clinical Meeting highlights the substantial economic challenges ahead.

Current Landscape and Financial Impact

Gene therapy spending currently represents just 0.8% of total pharmaceutical expenditure in the United States. However, research published in Gene Therapy projects annual spending to reach approximately $20.4 billion based on analysis of 109 late-stage clinical trials. Individual treatment costs are particularly striking, with examples including voretigene neparvovec (Luxturna) at $425,000 per eye for treating Leber congenital amaurosis and onasemnogene abeparvovec-xioi (Zolgensma) at $2.1 million per patient for spinal muscular atrophy in young children.

Pharmacist Role and Healthcare System Adaptation

The ASHP Pharmacy Forecast emphasizes the critical role of pharmacists in managing these advanced therapies. Survey results indicate that 75% of participants expect pharmacists to oversee gene therapy programs, while 58% anticipate Medicare will mandate pharmacist involvement.
"We are witnessing major innovations in health care, and strong collaboration is essential," says Joseph T. DiPiro, PharmD, editor of the Forecast. "Pharmacists are poised to play a key role, working alongside other health care professionals, to ensure new advances are integrated smoothly and accessibly into health systems for the benefit of all patients."

Strategic Implementation and Payment Models

Healthcare systems are developing various approaches to address the financial challenges:
  • Alternative payment structures, including outcomes-based and subscription-based models
  • Stop-loss insurance options for smaller health plans
  • Partnerships with state Medicaid programs
  • Manufacturer collaborations for preferred administration sites

Healthcare System Recommendations

The ASHP report outlines several strategic recommendations for healthcare systems:
  • Evaluate financial resources and clinical expertise capabilities
  • Establish strong relationships with state Medicaid programs
  • Develop comprehensive training programs for pharmacy staff
  • Create partnerships with manufacturers for ongoing access
  • Prepare for financial variances and reimbursement delays
ASHP CEO Paul W. Abramowitz, PharmD, emphasizes the dual nature of these challenges: "The groundbreaking therapies and technologies that are the most challenging to our health care system, like gene therapies and generative artificial intelligence, also provide promising, curative opportunities."

Future Outlook

With approximately half of gene therapy spending expected to occur through commercial insurance and Medicaid, the focus remains on developing sustainable access models. The industry must balance the transformative potential of these treatments with their substantial costs to ensure equitable patient access while maintaining healthcare system viability.
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Reference News

[1]
ASHP Midyear: High Costs of Gene Therapies Present Major Challenges to Implementation
pharmacytimes.com · Dec 11, 2024

Gene therapies offer potential for curing diseases but face hurdles due to high costs, estimated at $20.4 billion annual...

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