The Market for orBec® There are approximately 10,000 bone marrow and stem cell transplants in the U.S. each year. The market potential for orBec for the treatment of GI GVHD is estimated to be between 50 and 70 percent of these procedures. We have assumed $10,000 per course of treatment for orBec® (actual pricing is obviously still to be determined). This equates to a potential dollar market of between $50 million and $70 million. To put this in context, transplant centers are usually reimbursed at a fixed rate of approximately $250,000 for bone marrow and stem cell transplants. It is estimated that a single readmission to the hospital can cost the institution between $14,000 and $50,000. These patients have a high rate of readmission due to relapse of GI GVHD or leukemia. If these patients then become terminal and enter critical care, the costs mount very quickly. In two separate randomized, double-blinded, placebo-controlled trials, orBec has shown an approximately 67% reduction in mortality as well as a significant reduction in GI GVHD relapse rates in the pivotal trial.
Several companies are attempting to develop technologies to treat GVHD by suppressing the immune system. Companies such as Sangstat, Abgenix, and Protein Design Labs are developing monoclonal antibodies to treat GVHD. Novartis, Medimmune and Ariad are developing both gene therapy products and small molecules to treat GVHD. There are no products currently being marketed to selectively treat GI GVHD.
GI GVHD is what ORBEC TARGETS. NO PRODUCTS CURRENTLY AVAIL ON MARKET FOR IT!-thats a key sentence in the above description of ORBECS potential
"There are more than 10,000 allogeneic stem cell transplants in the U.S. each year," added Dr. Schaber. "It is estimated that allogeneic transplants will increase by as much as 20% annually over the next several years, with cord-blood and reduced intensity conditioning regimens, known as 'mini-transplants,' in the elderly fueling much of this growth. Unfortunately, more than half of these patients will go on to develop GI GVHD that requires treatment. We believe that orBec®, if approved, will potentially provide transplant physicians with an effective and much-needed tool to treat their GI GVHD patients and to improve survival. If approved, it is our intention to commercialize orBec® on our own in the United States, and to partner it in Europe and the rest of the world."
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.