A novel outcomes-based deal has been secured in Germany by Novartis for its high-profile CAR T-cell therapy Kymriah.
Kymriah (Novartis’ tisagenlecleucel) is a high-profile CAR T-cell therapy for patients 25 or younger with refractory and acute lymphocytic B-cell leukaemia, and for adults with relapsed/refractory diffuse large B-cell lymphoma.
MAP has followed Kymriah closely since its launch in 2018. As an expensive and novel treatment, the drug has faced some difficulty proving itself cost-effective.
In order to ensure patients can gain access to this revolutionary treatment, a group of German health insurance providers has offered Novartis a rare outcome-based deal, something almost unheard of in Germany. Under the deal, the group, known as GWQ (Gesellschaft für Wirtschaftlichkeit und Qualität für Krankenkassen), will fund their patients for Kymriah, to the tune of €320,000.
Novartis shares the risks of this arrangement by agreeing to partially reimburse these costs if the patient dies of their illness within a set period of time.
In the GWQ press release on the news, they say:
“In view of the continuously rising expenditure on medicines, the call for innovative pricing models is becoming ever louder. One promising solution is the so-called pay-for-performance contracts, which ultimately link the costs of drug therapy to treatment success.”
This is not the first time GWQ have created such a deal, having previously held an outcomes-based deal with Merck for Mavenclad.