Your CAR T therapy has the green light? How strong is your market access strategy? © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. CAR T-Cell landscape Recent study of lymphoblastic leukemia patients 90% achieved remission after relapsing or failing to respond to standard therapies Analyst forecasts: Expected costs of $300,000 per patient for treatment Will payers be prepared to fund CAR-T treatment at these levels? Source: https://www.lls.org/sites/default/files/National/USA/Pdf/Publications/FS27_CAR%20T-Cell_FS_5_16_FINAL.pdf http://files.massbio.org/file/yj75EkR.vs0CW5hfj6G.2.pdf 2 © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. A complex ecosystem Today’s challenges Manufacturer capacity Risk mitigation strategies Accounts receivable collection Financial approval for therapy reimbursement Certification and database maintenance Coordination and psychosocial needs Biopharma Providers 3 Payers Patients © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Manufacturer planning Considerations for program design and regulatory requirements. Cryopreservation qualification Qualified facilities REMS 4 FDA regulations Regulatory guidelines Coordination of facility validations © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Payer approval challenges Talk to payers! What evidence is required for a positive reimbursement decision? The Centers for Medicare & Medicaid Services (CMS) Most important considerations to payers Review of Provenge: • Safety and efficacy • Price of treatment One year before CMS agreed to provide national coverage with a temporary code Most common reasons for denial: Two years before permanent code • Considered experimental • Considered not medically necessary Source: http://gabi-journal.net/barriers-to-market-uptake-of-biosimilars-in-the-us.html http://www.bmtinfonet.org/before/financesinsurance 5 © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Lifetime leasing (NICE) If there is a combination of great uncertainty but potentially substantial patient benefit, innovative payment methodologies are needed to manage/share risk Example: CAR T-cell therapy specific to antigen CD19 for treating relapsed or refractory B-ALL in children and young adults: • Lifetime leasing method payment viewed with considerable interest • Lifetime leasing method: monthly fee is paid for the duration of treatment benefits (until death) = found to greatly reduce decision uncertainty Note: In the context of lifetime leasing considered here, the asset in question is the health gain delivered rather than the CAR T-cell therapy itself. Source: Exploring the assessment and appraisal of regenerative medicines and cell therapy products. Centre for Health Technology Evaluation, National Institute for Health and Care Excellence (NICE). March 2016. 6 © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Challenges to acceptance • Proof that it works is critical! • Unanswered question: How long will it last? • Concerns with cytokine release syndrome Stem cell therapy Stem cell therapy Average cost in 2010 Reimbursement $512,000 per person Apheresis: 4-6% Bone marrow transplant: 4% Cryopreserve stem cells: 2.5% Insurance + access ≠ healthcare Source: http://www.wsj.com/articles/new-costly-cancer-treatments-face-hurdles-getting-to-patients-1412627150 http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2259445/ http://californiastemcellreport.blogspot.com/2013/06/cost-of-stem-cell-therapy-estimated.html 7 © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Reimbursement Considerations • How long will it take to receive payment from the payer? • What if prior authorization is required? • Will the payer even provide coverage? • Will there be copay assistance? 8 © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Process modules Patient case tracking Ordering Apheresis center Pre-cryo storage Manufacturing Registry / certification Coordination / patient services Transportation Reimbursement Reporting / access / notification 9 © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Post-cryo storage Infusion Psychosocial needs 10 Anxiety Depression Financial problems Caregiver coordination Family responsibilities Transportation School / work pressure Spiritual beliefs Lack of information © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Manufacturer wrap around services • • • • • • • • Psychosocial needs Travel/transportation Meals Caregiver/housing assistance Education Foundation support Patient assistance programs? Copay Will you provide services to support these patient needs? 11 © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Education and marketing Patient First to market: Caregivers • • Advocacy groups • Hospital Medical staff Physicians Payers 12 • Doing all of the educating Educating on all of the sciences Consider different tiers of education Coordination/scheduling Second to market: • • Meeting or exceeding expectations set by first Coordination/scheduling © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Adverse events Mild to severe Cytokine release syndrome: Challenge to manage symptoms without compromising efficacy Need qualified medical staff Occur in More treatment time 60% of patients Need certified hospitals Source: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC4119809/ 13 © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. More expenses Data and information What will be your data collection process? What will be included in your enrollment form? How will you comply with the FDA’s mandated follow up 15 years later? 14 © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Distribution State licensing • Can take up to 1 year once commercialized • Review time and fees vary state-by-state Accounts receivable • When/where will this happen? Will you outsource or build internally? • If you outsource, how will you qualify your vendors? Title Model Third Party Logistics 15 © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Issues to mitigate • Apheresis chair • Quality of apheresis specimen • Coordination of specimen to manufacturer – damaged? late? • Staff availability to do induction • Certified medical staff • Cryopreservation storage • Transportation delays • Caregiver / patient support (family member crisis, financial duress) • Patient expired or unstable and unable to accept medication • Denial of claim • Medication delivery not logged according to standard operating procedures 16 © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Thank You! Jan Nielsen Division President, Sonexus™ Access & Patient Support jan.nielsen02@sonexushealth.com © 2016 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE, and VITALSOURCE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.