DISCREPANCY BETWEEN NATIONAL DRUG FUNDING RECOMMENDATIONS AND LOCAL UPTAKE IN THE SWEDISH INPATIENT SECTOR McGee M, Izmirlieva M, Marinoni G, Ando G OBJECTIVES Since 2012, the Swedish Dental and Pharmaceutical Benefits Agency (TLV) has carried out cost-effectiveness assessments on behalf of the national New Drug Therapies (NLT) group for new, high-cost, inpatient pharmaceutical products without therapeutic alternatives. The TLV issues mandatory recommendations in the outpatient setting, and the new assessments in the inpatient setting are being conducted under a pilot project called Klinikläkemedelsprojektet. Upon cost-effectiveness assessment by the TLV, the NTL group issues non-legally binding national drug funding recommendations for Sweden’s 21 County Councils, which are themselves responsible for local inpatient drug provision and their associated costs. The present research identifies and analyzes the level of alignment between the 2013 NLT group’s national funding recommendations and the actual procurement practices of the Stockholm Country Council´s (SLL) following implementation of the Klinikläkemedelsprojektet. Table 1.1: Discrepancies between NLT-group funding recommendations versus SLL uptake Recommended by the NLT group – not procured by the SLL Brand name Manufacturer Indication cabazitaxel Jevtana Sanofi For the treatment of hormonerefractory, metastatic prostate cancer patients previously treated with docetaxel SEK1.18 million – SEK1.44 million Fluenz MedImmune Prophylaxis of influenza 2 to 18-year-old children SEK215,000 aflibercept Zaltrap Sanofi For combination therapy with irinotecan / 5-fluorouracil / folinic acid chemotherapy in metastatic colorectal cancer patients resistant to or who have progressed after oxaliplatin treatment Costminimisation analysis Active autoantibodypositive systemic lupus erythematosus (SLE) SEK980,000 belimumab Benlysta GlaxoSmithKline The SLL procured 3 out of the 11 NLT-group recommended products (see Figure 1). Figure 1: Summary of NLT group’s national funding opinions and SLL’s local procurement activity Roche HER2-positive metastatic or locally recurrent unresectable breast cancer in patients not previously treated with anti-HER2 therapy or chemotherapy SEK 2.565 million collagenase Clostridium histolyticum Xiapex Swedish Orphan Biovitrum Dupuytren's contracture with a palpable cord Ca. SEK26,000 per treated point belatacept Nulojix Bristol-Myers Squibb Prophylaxis of transplant rejection in combination with corticosteroids and a mycophenolic acid Cost of treatment ca. SEK140,000/ year vemurafenib Zelboraf Roche BRAF V600 mutationpositive unresectable or metastatic melanoma 3 11 8 14 1* 3 The company will offer belimumab below list price, bringing the estimated cost per QALY at SEK750,000 Perjeta SLL NLT Cost per treatment cycle is SEK12,405 for aflibercept, which is SEK919 lower than for comparator treatment bevacizumab pertuzumab Results: 1 Combined decisions issued for new anticoagulants were not included in this study 2 data retrieved from SLL’s Kloka listan 2014 and the full September 2014 procurement/price list (including 2013 amendments) RESULTS SEK860,000 to SEK1 million for some patients reassortant influenza virus (live attenuated) METHODS The NLT group issued 15 national funding recommendations for inpatient drugs in 2013, of which 14 are included in this research1. The 14 recommendations, which include 5 cancer drugs, 3 ophthalmology treatments, and 6 products indicated for a variety of diseases such as influenza and lupus, were compared with the SLL’s 2014 procurement lists2. The selection criteria for the year and region of interest were based upon factors expected to enhance the reliability and generalizability of the analysis. Indeed, 2013 is the most recent full year of data in terms of funding recommendations from the NLT group, while the SLL is the largest council in the country. SLL’s decisions are also highly influential beyond its specific council. Cost per QALY* / Other healtheconomic evaluations INN 2 *QALY calculations based on list prices NTL Recommended NLT Not Recommended SLL Procured SLL Not Procured *Lucentis’ retinal vein occlusion (RVO) indication gained national recommendation while its diabetic macular edema (DME) indication was rejected by the NLT group; the SLL did not disclose for which indication Lucentis is procured. The eight products not currently procured by the SLL despite positive funding recommendations by the NLT group were found to be cost effective by the latter even though some exceeded the informal cost-effectiveness threshold of ca. SEK800,000 per QALY3, with the notable exception of pertuzumab (see table 1). In this case, the NLT group noted that while pertuzumab’s list price was initially “very high,” a deal was reached with the manufacturer. Qualitative interviews carried out by IHS in May 2014 found that payers in Sweden apply an informal cost-effectiveness threshold of ca. SEK800,000 per QALY. 3 CONCLUSIONS Since the NLT’s recommendations are not binding and are in a pilot phase, it is not surprising there is a significant discrepancy between the national funding recommendations and local procurement decisions. It is likely cost-effectiveness ratios come into consideration alongside other factors, such as local healthcare needs. While the Klinikläkemedelsprojektet is designed to support local decision making, final uptake decisions remain with the country councils. Consequently, NLTgroup funding recommendations or pricing deals at the national level do not guarantee local market access, and patient access to new innovative inpatient medicines remain heterogeneous across Sweden. Further research is needed to identify whether the present findings can be extended to the other 20 Swedish county councils and whether county council procurement patterns become more aligned with the national recommendations in the future, especially as the Swedish government is considering turning the Klinikläkemedelsprojektet into a permanent initiative.4 The Swedish Agency for Health and Care Services Analysis (Vårdanalys)— Värdefullt men inte fullvärdigt 4 IHS LIFE SCIENCES www.ihs.com/LifeSciences Gustav.Ando@ihs.com 6799-0914JK 6799-0914JK