Spark prices Luxturna, eyes new payment models

Spark Therapeutics Inc. (NASDAQ:ONCE) priced Luxturna voretigene neparvovec-rzyl at $425,000 per eye and announced an outcomes-based pricing arrangement for the gene therapy. The company is also setting the stage with the Centers for Medicare & Medicaid Services (CMS) to potentially test a payment-over-time pricing model with commercial and government payers.

FDA approved Luxturna on Dec. 19 to treat biallelic retinal pigment epithelium-specific protein 65kDa (RPE65) mutation-associated retinal dystrophy. The majority of patients will require treatment in both eyes, putting the total wholesale acquisition cost (WAC) at $850,000. While Spark had hinted on its 3Q17 earnings call in November that the value of sight restoration provided by Luxturna exceeded $1 million, CEO Jeffrey Marrazzo told BioCentury on Wednesday that Spark chose a lower WAC "to strike a balance between the access concerns of patients, families and providers, as well as the budget challenges for payers and the need for us to create a business model that will support the sustainability of the company" (see BioCentury Extra, Nov. 7, 2017)...