A new gene therapy for an infant muscle-wasting disease is about to launch at a potential cost of $2 million, according to The Wall Street Journal.
Although Novartis has not set the price for Zolgensma, company executives said a seven-figure price is justified due to its potential to cure spinal muscular atrophy, an inherited disease that is often fatal for patients before age 2.
Last November, Novartis executives said that the drug could be cost effective with a price tag between $4 million and $5 million. Analysts are expecting the drug to be around $2 million.
The $2 million price tag would be a record and would likely fuel drug-pricing scrutiny.
The issue of gene therapy cost is gaining importance as more gene therapies become available in the U.S. These treatments have the potential to cure otherwise devastating illnesses in one treatment.
Insurers have argued that multimillion dollar price tags aren't sustainable.
Zolgensma is expected to launch soon, with an FDA approval or rejection due this month.
Read the full report here.