Aegerion CEO Speaks On Juxtapid Launch, Orphan Drug Pricing And Competition
CAMBRIDGE, Mass. ( TheStreet) -- Following U.S. approval in December, Aegerion Pharmaceuticals (AEGR) is now in the early days of the commercial launch of Juxtapid for the treatment of homozygous familial hypercholesterolemia (HoFH), a rare genetic disease that prevents cholesterol from being cleared from the body. As a result, HoFH patients suffer from the buildup of fatty deposit in their tissues and blood and are at severe risk for fatal heart attacks.
On Tuesday, I spoke with Aegerion CEO Marc Beer for an update on the Juxtapid launch and future plans for the company. We also discussed orphan drug pricing and insurance reimbursement -- an issue of increasing focus and concern for drug companies and investors. Isis Pharmaceuticals (ISIS) , a competitor, also came up in our conversation, which took place hours before FDA approved Isis' HoFH drug Kynamro.
One year of Juxtapid therapy costs $250,000, on a blended basis. Aegerion expects to have 250-300 HoFH patients on drug by the end of 2013, with revenue in the range of $15-25 million. The company has 1,500 HoFH patients in the U.S. in its Juxtapid patient tracker database and believes there may be as many as 3,000 HoFH patients in the U.S.
I began the conversation with Beer asking about the steps Aegerion is taking to get Juxtapid's launch off to a strong start.
First, we're focused on training physicians in our REMS
Second, we're working on moving patients through the pre-authorization phase. We have forecasted that it will take 4-5 months to do that, on average. We're watching the first quarter closely to see how long it will take to get patients through the insurance coverage process.
Lastly, we're looking at the patients who have prescriptions, looking at the severity of the patients in order to forecast the clinical utility of Juxtapid when it's in the hands of treaters versus patients in our patient tracker database.
Describe the feedback you're getting from insurance companies regarding Juxtapid reimbursement.
Juxtapid is a true orphan drug in that the morbidity and mortality of HoFH is severe and our drug is disease modifying, so we always believed that insurers would respect our price point and reimburse...
But we had to price the product right and communicate with insurers. This is work that we did in the last six months of 2012. The early indications are very positive. We visited 85% of the U.S. population's insurance carriers prior to the launch and we continue to have those meetings. In the early days of processing pre-authorizations, we are getting no sense of pushback or restrictions from insurance companies. If we were, we'd be seeing demands for patients to try certain medicines first or to undergo apheresis, but we haven't seen anything like that yet.