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Would You Pay $475,000 for the New CAR-T Cancer Treatment?

How much is a life worth? Will new cancer treatments bankrupt the American health care system? CAR-T gene therapy is revolutionary, but can we afford it?
A female cancer patient with no hair,

The hottest new cancer treatment is called CAR-T. It stands for chimeric antigen receptor (CAR) T-cell therapy. Many world class medical centers have gone all in on CAR-T cancer research. That’s because there is great hope that this new form of personalized immunotherapy could represent a dramatic improvement in hard-to-treat cancers. Is CAR-T worth almost half a million dollars?

ALL Treatment

Imagine for a moment that someone you loved was diagnosed with a deadly cancer called acute lymphoblastic leukemia (ALL). This is a blood cancer. The bone marrow churns out way too many immature white blood cells (lymphocytes). They are unable to do their job fighting infection. As more and more leukemia cells are produced, fewer healthy lymphocytes can be made. Symptoms include easy bruising, fever, joint pain, swollen lymph nodes, fatigue and weakness.

In the past, treatment for this kind of leukemia has involved potent chemotherapy drugs and powerful corticosteroids (dexamethasone or prednisone). There are additional drugs that sometimes help such as Gleevec (imatinib) or methotrexate. The cure rate for adults is usually around 40 percent.

If this kind of leukemia relapses the prognosis is not good. When children or young adults experience a return of ALL, their anticipated lifespan is measured in months, not years.

CAR-T for ALL: Is Kymriah Worth $475,000

What price do we put on a life? That seems to be the question the pharmaceutical industry is now asking. There is tremendous excitement about CAR-T because the early word on the street is that it could represent a cure for some people. This new cancer therapy is the first FDA-approved gene treatment for leukemia. Novartis has named its CAR-T treatment Kymriah.

This therapy involves harvesting T cells from the patient. These specialized immune cells are then modified to produce chimeric antigen receptors (CARs). The CAR-T cells are then allowed to multiply. When there are millions and millions of CAR-T cells they are infused back into the leukemia patient’s bloodstream where they are supposed to home in on the cancer cells and kill them. This sort of immunotherapy has many cancer researchers excited because they have seen results in some patients that have been nothing short of miraculous.

An Inside Story on Drug Prices:

Decades ago an executive at one of the country’s leading pharmaceutical companies confided to us that the industry was facing a crisis with regard to drug pricing. The first AIDs drugs were becoming available and companies were charging what seemed like outrageous prices.

The initial price tag for AZT in 1987 was $10,000 a year. That was considered shocking. AIDs activists and public health experts were up in arms. Civil disobedience protests over the price forced the company to lower the price to $8,000 a year.

The Impact of Push Back:

Our insider into drug company negotiations told us that he and other executives sat around a table in the 1980s and discussed pricing in general and cancer drug prices in particular. These pharma folks were taken aback by the public outcry over the price of AIDs drugs.

They admitted to themselves that if a company came up with a cure for cancer it would have to be very cautious about the price it charged. There was even a suggestion that the industry would have to give away such a miraculous medicine. Otherwise, the entire pharmaceutical industry might be tarnished. The rebellion over the cost of AIDS drugs suggested to these various executives that the public would not stand for price gouging. That was then.

Today, drug companies routinely charge anywhere from $100,000 to $150,000 for new immunotherapy cancer drugs. We suspect that the $475,000 price tag for Kymriah is a trial balloon. There are many other companies researching CAR-T therapies for other cancers. If Novartis can get away with charging nearly half a million dollars, then other companies are likely to see that as the new benchmark, too.

Can We Afford New Cancer Drugs Like CAR-T?

Even if someone has great insurance, there are collateral expenses associated with CAR-T. Patients often have to stay close to the medical center for weeks or months after they get their CAR-T infusion. That’s because side effects of this therapy can be life threatening.

The immune system sometimes goes wild. A massive release of chemicals called cytokines can trigger high fevers and very low blood pressure. Serious infections are another worrisome complication. Brain swelling can lead to seizures and other neurotoxicity. These adverse reactions are often treated with large doses of corticosteroids, which also carry significant side effects.

Insurance companies that agree to pay half a million dollars for CAR-T therapy will doubtless raise their premiums. Patients who do not get approval from their insurance companies will have to face a terrible dilemma: Beg or borrow hundreds of thousands of dollars or watch a loved one die. In our opinion, that is unconscionable.

What if There Were a Cure for Alzheimer’s Disease?

Most people have been touched by dementia. Have you watched helplessly as a friend or family member slowly descended into forgetfulness. What would you pay to keep that person out of a nursing home? What if we could keep that individual from disappearing down the rabbit hole entirely?

We suspect that the first truly effective medicine against Alzheimer’s disease might come with an unbearable price. The drug company would likely charge more than $100,000 a year. It would justify the cost on the grounds that nursing home care can cost almost that much, if not more.

Multiply $100,000 times 5 million people with Alzheimer’s disease. That comes to:

$500,000,000,000,000

That’s theoretical. But it is more money than any country could afford.

Now consider the cost of cancer drugs at $500,000 per treatment. How long can we sustain a health care system with prices like that? We suspect that the entire system will implode within a few years if we do not get costs under control. Breakthrough drugs like CAR-T are great…if they are affordable. If our entire health care system sinks under the weight of such advances, we’re all in trouble.

What Do You Think?

We would love to hear from you. Are new cancer treatments worth hundreds of thousands of dollars? We all want new and better cancer therapies. Can we afford them? Share your thoughts in the comment section below.

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About the Author
Joe Graedon is a pharmacologist who has dedicated his career to making drug information understandable to consumers. His best-selling book, The People’s Pharmacy, was published in 1976 and led to a syndicated newspaper column, syndicated public radio show and web site. In 2006, Long Island University awarded him an honorary doctorate as “one of the country's leading drug experts for the consumer.” .
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My brother had a reccurrence of non-hodgkins lymphoma after 12 years. His reccurrence was a derivative cancer called neurolymphomatosis (NL). It is very rare and only in 2% of all NHL reoccurrences. The life expectancy in only months without treatment. After “regular” chemo, he pursued experimental treatment at the NIH. All failed. He was accepted into one of the Mayo Clinic CAR-T cohorts. And was cancer free for 8 months after which NL returned with a vengeance. He is now in another experimental chemotherapy regimen. However, the prognosis is grim.

However, my brother has lived 5 years with only periods of wellness. For him and his family, the fight has been worth it. partly because they have excellent health insurance coverage – commercial and military. NIH cost $1,000,000, and Mayo CAR-T was $1,000,000, all costs included. My brother is brave and a fighter and has been fortunate in having qualified for insurance coverage. However, he has endured great physical suffering through treatment. As a family member just wanting their loved one to survive, we would do anything. As a health care professional myself, the ethics of this treatment (as well as other pharma) for all people, especially those lacking adequate insurance coverage or having no financial means, is a serious question. Our health care cost curve is so out of whack it has created a system of rationing and “survival of the most financially fit”. This is not a good thing,

I know 3 people – including myself. who are on immunotherapy for advanced cancers. It works. The drug companies pay for it through patient assistance programs. Insurance will not pay unless you are on the short list of cancers for which immunotherapy drugs are approved. Chemotherapy does not work and is horrible on the patient.

Immunotherapy saves lives. Without it we would be dead.
So, we have found a way, but as my oncologist says
“Prices have to come down for immunotherapy drugs to be used more.”
I hope this is helpful.

I agree with many of the previous comments, however, as a grateful recipient of free drug treatment with Imbruvica from Johnson & Johnson which would normally cost over $100,000.00 per year I believe all the rage.

Against all the pharmaceuticals is unfounded. That is not to say there are no unscrupulous companies who take advantage of their position. I’m sure everyone is aware of the costs and many years of developing, testing and bringing a new drug to market at little or no cost to taxpayers.

Sounds like the government is purposely “thinning the herd.” They allow poisons into our food, and turn a blind eye to the unhealthy way our meat, chicken and fish is raised and prepared for sale. Unhealthy items are allowed into the country from China. And now they produce medicine that only the Uber rich can afford. Big Food and Big Pharma are the people running this country. After reading this article, I will never give another penny to medical research. They already get my tax dollars. As someone else mentioned up-thread, we generously donate money to fund research for killer diseases only to find out that we cannot afford the drugs when our or a family loved one needs it. Like others, I have no plans to extend my life when death comes a knocking. I carry a DNR card.

$475,000 for a possible extension of life is not a cure, it’s a money scam, being proposed by an unscrupulous company.

The health care system in this country needs reform from the ground up. The health insurance system creates bizarre arrangements where the price of care and medications seems to be based on what the pharmaceutical companies, among others, think they can get away with. The insurance companies themselves add no tangible value to health care – they are profit-driven middle men. Those who have insurance may receive outrageously expensive care that improves quality or length of life very little, if any.

Meanwhile, some of those with no insurance can’t even afford basic care to prevent illness. The pharmaceutical companies advertise relentlessly on television to encourage patients to request the latest expensive medications – avoiding honest disclosure of how much patients are actually likely to be helped. Some physicians are also guilty of pushing patients to accept medications and other treatments that are dubious in benefit but will make the physician richer.

To make matters even worse, throw in the lawyers who rake in the money suing anyone they can. There is no reason this rich country can’t figure how to bring sanity into this health-care nightmare – but too many politicians on both sides are more concerned with whipping up animosity to increase personal power than cooperating to fix this shameful mess.

The solutions aren’t easy, but there has to be a way to make it fair to everyone, including drug companies and medical care providers – unfortunately there are too many special interests who care nothing about fairness and reason.

CHemo treatments average $500,000 per treatment plan, it’s just spread out & it doesn’t cure the disease. CAR-T Is a cure so in the long run a cheaper option.

I hope Trump drains the swamp in government and in drug companies.

Much of the background science for this kind of treatment was done with government grants through the NIH. The contribution of the government should be taken into account when the pharmaceutical company sets prices- perhaps they should have to repay the government grants.

Well yes, it’s all about dollars and cents, of course. That doesn’t mean that the conventional cancer treatments are cost-free – or offer a large chance of cure, in most cases. There may not be such a huge gap in sheer money terms. Though of course the cancer business is a gigantic part of our national economy, which is another way of thinking about it in dollar terms.

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