Celgene Corporation’s (NASDAQ:CELG) psoriatic drug, Otezla, has gained the attention of the National Institute for Health and Care Excellence (NICE), and the cost watchdog has also given a green signal for the drug to be used in the management and treatment of psoriatic arthritis.
Initially, NICE has rejected the drug by drug’s oral formulation and the price factor the company has offered. Now, the latest review will be held in November to materialize the drug launch in Europe.
NICE now opines the drug can be used alone or in combination with disease-modifying antirheumatic drugs (DMARDs) in the patients who have psoriatic arthritis as they did not tolerate the DMARDs or other forms of medications.
The approval is based on the connection with the patient access scheme, allowing the company to provide the drug at a subsidized discount to the NHS, to maintain the cost effectiveness.
According to the NICE guidance, the drug with a price tag of £550 comprises of dosage for 28 days, which did not vitalize the drug role in eradicating the disease Some experts of NICE opine depending upon the patient’s disease severity, many patients can take the oral formulation rather than that injectable.
The regulatory agency approved the drug in Europe in January 2015 for the management and treatment of multiple psoriatic ailments. The oral formulation did not require lab monitoring as other drugs from the same category requires, reducing the burden on a pocket of the patients and hospital visits.
With the NICE green signal, the drug will give competition to AbbVie’s Humira, Amgen’s Enbrel, and Merck and JNJ’s Remicade.
The drugs are fighting for their survival as they are also facing competition with the launch of the biosimilar versions, which provide the same efficacy at low cost.
According to the analysts' estimates, Otezla is expected to gross $1.3 billion by 2018, but the drugmaker is optimistic the molecule will hit $2 billion annually.