Novartis will partner with CMS to offer an outcomes-based pricing model for its new leukemia drug Kymriah.
The drug, which earned regulatory approval Wednesday, is intended to treat patients 25 years and younger with relapsed acute lymphoblastic leukemia. Kymriah uses patients' genetically modified immune cells to fight the disease and costs $475,000 per treatment.
Under the agreement, Novartis will only receive reimbursements for the drug from CMS if patients respond to Kymriah by the end of the first month of treatment.
"Novartis has been at the forefront of outcomes-based pricing and is very pleased to work with CMS on this first-of-its-kind collaboration with a technology that has the potential to transform cancer care," said Novartis CEO Joseph Jimenez. "We look forward to continuing to work with CMS to potentially expand this approach to other products and disease states."
More articles on supply chain:
FDA grants MDMA breakthrough status for treatment of PTSD: 4 things to know
FDA approves antibacterial drug for UTIs
Abbott issues software update to prevent pacemaker hacks: 4 things to know