Genentech: an exercise in greed
I love the word "greed." It's nice and… eee-vil. Which happens to perfectly describe Genentech's latest stunt. They're going to try to restrict the use of Avastin so that it cannot be used for age-related wet macular degeneration — a practice that is quite common. In fact, there are several specialty pharmacies in my area that specialize in compounding Avastin for this purpose.
But wait! Genentech wants to curb this practice because Lucentis is much more expensive, despite being (basically) the same thing. Only a bit more diluted. I'll quote from the old SFGate article:
While no rigorous studies prove Avastin’s effectiveness or safety in eye treatment, the doctors claim it can improve vision in some patients.
Now that Lucentis has been approved, Avastin may retain some share of the market because it costs a fraction of the price Genentech has set for Lucentis. That price per dose will be $1,950, company officials said Friday. Doses of Avastin are available to doctors at $50 or less from compounding pharmacies that divide up vials of the cancer drug into the much smaller amounts needed for eye treatment.
But now Genentech is going to stop providing Avastin to compounding pharmacies:
In a letter yesterday to retina specialists, Genentech said that its wholesalers would no longer provide Avastin to compounding pharmacies — companies that under sterile conditions can divide a vial of Avastin into tiny portions for use in the eye. The company said the distribution change would take effect Nov. 30.
Genentech has discovered that they are their own worst enemy. Unfortunately for them, the right course of action is to remove the compounding pharmacies as the middlemen and make an Avastin formulation specifically for ARWMD.
Genentech did not plan to compete with itself. It said it intended Lucentis specifically for use in the eye, believing that Avastin, a bigger molecule, would not work there. But while waiting for Lucentis to be approved, doctors started using Avastin and found it worked.
Instead they've opted for karmic seppuku for the sake of money. And this WILL bite them in the ass. It's only a matter of time.
(Oh, and if this nonsense is allowed to stand, that'll add $1 billion in yearly costs to Medicare. I think I speak for every US citizen that's not employed by Genentech when I say "Go die in a fire.")
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This is absolutely ridiculous. And there ARE well controlled, rigorous studies looking at Avastin use in macular degeneration. I'm sure there are more for Lucentis, but still.
I'd hope that Genentech gets in trouble over this, but frankly that would end up leading to the laying off of thousands of employees that really shouldn't take any blame, just like what's happenening at Amgen right now…
Comment by rxdrew — October 16, 2007 @ 2:59 pm
This is outrageous, playing with peoples health for their own gain. All the patients who have been benefiting from, and buying, their products, are going to move from loyal consumers to angry naysayers.
Comment by laser eye surgery scottsdale — October 16, 2007 @ 7:31 pm