Replies to post #2069 on Biotech Values

[DewDiligence]

>> I do not think that this test will have a huge impact on the income derived from the EGF-R inhibitors. If the test is validated and used, then the companies like AZN and OSIP will be able to offer a more tailored therapy with a heavily increased chance of therapeutic benefit. This will likely prompt the companies to increase the cost of their drugs in a manner analogous to Genzyme's enzyme therapies. <<

That won’t work unless the drugs are given to only the patients with the mutant EGFR. However, patients without the mutation do show some benefit from taking these drugs, so some of them will opt for treatment.

What would be ideal for the companies would be a two-tired pricing structure (charging more to the patients with the mutation because they benefit more), but that’s not especially practical.

>> If I'm not mistaken, the patient populations that Iressa and Tarceva were tested on were not identical. Iressa patients had failed 2 previous regimens whereas, Tarceva's had failed at least 1. <<

Iressa had two phase-3 trials: one in the second line and one in the third line. Tarceva had one trial with mixed second/third line. For all practical purposes, the two drugs were tested in the same setting.