Spark Therapeutics Inc. on Wednesday announced an alternative pricing program for its latest gene therapy, Luxturna, which has the potential to jump off a pricing trend in pharma.
The drug carries an $850,000 price tag, but according to an analysis piece by Max Nisen published on the Washington Post, it could have cost more than $1 million, and some of the $850,000 is refunded if the therapy doesn’t perform as expected.
Luxturna is a one-time treatment which can help bring back sight in patients with a “rare genetic condition,” according to the report.
The below-expected pricing from Spark Therapeutics follows a similar path taken by AbbVie Inc. and Novartis.
“Whether these moves were prompted by market analysis or a realization that it’s no longer wise to shoot for the upper limit of what the market will bear, new drugs priced conspicuously higher will look bad by comparison, and may have a tough time launching,” Nisen writes.