Novartis’ new leukemia treatment, Kymriah, received the Food and Drug Administration’s approval Wednesday, a pivotal move with big implications for cancer treatment.
“Today’s approval marks a paradigm shift in how cancer patients are treated, as this represents the first CAR-T approval by any company,” Sanford C. Bernstein Managing Director of Global Pharmaceuticals Equity Research Sanford C. Bernstein said. “It shows how Novartis’ R&D efforts are often focused on high science, and the company’s overall ability in R&D is (only) one of the reasons it has been one of our top picks since the start of the year.”
The drug carries a $475,000 price tag, but Novartis and the Centers for Medicare and Medicaid Services negotiated an agreement for a value-based pricing framework.
Barron’s reports Novartis’ recognized income will be contingent upon the patient’s response to the treatment after one month.
Novartis’ stock price during Wednesday’s session inched lower to $82.74, down from $83.62. Shares, however, spiked to $84.83 in after-hours trading before settling lower at $84.