August 7, 2008

GSK Seeks New Deal With NHS for Cancer Drug Tyverb

GlaxoSmithKline plans to renegotiate with the UK's Department of Health as part of its attempt to reverse the National Health Service's decision regarding the company's cancer drug Tyverb, reported the Financial Times.

According to the news source, GlaxoSmithKline (GSK) is proposing a new 'price-volume' deal to address the concerns of the National Institute for Health and Clinical Excellence (NICE), the government's medicines advisory body, which considers Tyverb as too costly when compared to the benefit it offers.

Under the revised deal, GSK is proposing a cap on the total cost of the medicine to the National Health Service (NHS), irrespective of the number of patients using it.

GSK has said that it will fix a particular price to cover the cost of Tyverb so as to enable the drug's access to many patients, specially in cases where they have not witnessed positive results with other cancer treatments including Herceptin. Although the number of patients recruited is less, GSK said that it will not charge more for the drug.

In the event that the NHS identifies a larger pool of population for the drug to be recommended, GSK said that it will not charge for additional orders.

GSK has won European regulatory approval for Tyverb to treat late-stage breast cancer. Nevertheless, the company is facing greater resistance in the UK with NICE rejecting the use of the drug in the UK.