Bluebird Bio has priced Zynteglo, its gene therapy for a blood disorder, at $1.8 million, according to STAT news.
Five things to know:
1. Zynteglo recently won approval to be sold in Europe for the treatment of beta thalassemia, a blood disorder that reduces the production of hemoglobin. Bluebird Bio is hoping to secure U.S. FDA approval in 2020.
2. With a price tag of $1.8 million Zynteglo is second to Zolgensma, Novartis' gene therapy for spinal muscular atrophy, priced at $2.1 million.
3. Bluebird Bio said the high cost of its one-and-done therapy, is reasonable given its potentially curative nature saves patients, insurers and the health system money by reducing overall cost of medical services over time, according to STAT.
4. Bluebird wll be paid $355,000 when patients receive an infusion of Zynteglo. The remaining cost of the therapy will be split into four annual installment payments. The drugmaker will only continue to receive payment if the patient continues to benefit.
5. As a result of the payment plan, drugmaker will not get paid unless the medicine works to help patients with the blood disorder. Bluebird will put about 80 percent of Zynteglo's revenue at risk.
Read the full report here.