Fosun Kite Launches China's First Outcomes-Based Payment Plan for CAR-T Therapy Yescarta, Offering Up to RMB 600,000 Refund if Complete Remission Not Achieved

Jan 12, 2024 09:56 CST Updated 09:56

Fosun Kairos

Developer of Tumor Immune Cell Therapy Technologies and Products

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"The rule of '7-day no-questions-asked return' on e-commerce platforms may be replicated in the pharmaceuticals sector."。

On January 11, Fosun Kite Biotechnology Co., Ltd. (hereinafter referred to as Fosun Kite) announced the launch of an outcomes-based payment plan for its CAR-T (Chimeric Antigen Receptor T-Cell Immunotherapy) product Yikaida. Eligible patients treated with Yikaida who do not achieve complete remission (CR) will receive a refund of up to RMB 600,000.

Yikaida is the first CAR-T cell therapy product approved in China.Priced at 1.2 million yuan per injection in China. According to the plan,The 1.2 million yuan is divided into two installments. If the patient does not achieve complete remission after using it, they can receive a refund of up to 600,000 yuan.。

This program will be China's first innovative payment model for lymphoma drugs based on value-based payment for efficacy.Yikaida will also become the first bio-innovative drug in China to be paid based on therapeutic value.。

As an individualized and customized therapy, the price of up to a million yuan per injection is an unavoidable topic for CAR-T therapy. This high price is related to its high production costs. Unlike traditional drugs, CAR-T requires the collection of T cells from each patient’s body, so each patient needs a separate production line, and the final product is also limited to the patient's own use. According toSouthwest SecuritiesCalculation,In the production process of CAR-T products，The total fixed cost per year is approximately 584,100 USD, and the variable cost per product is about 46,400 USD.. Under the maximum annual production capacity,The production cost of a single dose of CAR-T reaches $78,800.。

Currently, the four CAR-T therapies that have been launched in China are all priced at the million-yuan level. Despite some惠民保and commercial...InsurancePayment methods through commercial channels are available, but due to numerous restrictions on reimbursement conditions, how to make the drug benefit more patients is a significant challenge faced by CAR-T product manufacturers.

"If within 3If the patient does not achieve complete remission within a month, even if there is some efficacy but not as good as complete remission, according to the plan, half of their out-of-pocket payment for the medication will still be refunded.If the patient fully self-pays for the medication, the maximum reimbursement will be 600,000 RMB.If this patient has already participated in insurance programs like Hui Huibao, and after the insurance compensation, if the out-of-pocket medication cost is 700,000 yuan, he would receive a refund of half, which is 350,000 yuan for the medication cost, significantly reducing the overall treatment expenses.。"Senior Commercial Access Director of Fosun Kite Biotechnology Co., Ltd., Wang Xiangning, explained."

Yikaida China's First Lymphoma Pay-for-Performance Plan Launch Event.

Photo provided by the interviewee.

"CAR-T therapy has certain characteristics. Based on these characteristics, we have conducted multiple clinical and pharmacoeconomic discussions, and after repeated calculations, we have introduced such a plan."Qi Yuanyuan, who is in charge of the project at Fosun Kite Biotechnology Co., Ltd., saidYikaida is the CAR-T product with the most and largest sample size of real-world research data globally, and it also has the longest follow-up time among CAR-T products. There are over ten thousand cases of data worldwide. As the first CAR-T cell therapy product approved in China, Yikaida has achieved a breakthrough from 0 to 1 in China's cell therapy field and has become the only CAR-T cell therapy product in China approved for second-line indications.As of 2023, Yikaiya has successfully treated over 600 patients with relapsed/refractory large B-cell lymphoma.。

"Besides, the plan is also based on clearer standards for complete remission of lymphoma."Qi YuanyuanIntroductionYikaida China's first lymphoma pay-for-performance plan will strictly evaluate complete response (CR) results according to the 2014 Lugano Classification (the latest international authoritative standard for lymphoma efficacy assessment).

"The criteria for complete remission are quite high, and not achieving complete remission does not mean there is no efficacy. Moreover, Fosun Kite Biotechnology Co., Ltd. will collaborate with all parties, including clinical experts, the National Health Commission, and treatment demonstration centers among other government and medical institutions, to jointly discuss and establish cure standards." Qi Yuanyuan told reporters that the 3-month evaluation is also based on statistical results from previous cases, and for patients, earlier judgment helps alleviate the financial burden of treatment sooner.

InProfessor Wang Pei from the School of Public Health, Fudan UniversityIt seems that,Innovative DrugThe short time on the market leads to greater uncertainty in efficacy, but the prices are generally very high. This solution from Fosun Kite can, to a large extent, alleviate patient concerns.

"The payment plan based on therapeutic value provides a solid guarantee for the value of using Yikaida in patient treatment, fully demonstrating the company's firm confidence in the product quality and therapeutic value."Zhang Wenjie, Chairman of Fosun Kite Biotechnology Co., Ltd., saidFosun Kite has established more than 160 high-standard Yikai Da treatment centers across 25 provinces, municipalities, and autonomous regions in China. It has also promoted the inclusion of CAR-T cell therapy products in over 100 city-level惠民保programs and more than 75 commercial health insurance programs, further extending the reach of innovative cell therapies to benefit more patients. Further exploration and refinement of related plans will continue going forward.

Fosun KiteR&D Pipeline

References:Daily Economic News、Fosun Kite