Cancer Drugs Emerging as Top Driver of Specialty Drug Spending

-- Deep pipeline, new targeted therapies to drive oncology drug spending -- New cancer treatments expected to hit market soon -- Medco opens center for specialized oncology care, marking Breast Cancer Awareness Month

FRANKLIN LAKES, N.J., Oct. 8 /PRNewswire-FirstCall/ -- Cancer treatments are on track to become the biggest driver of specialty pharmacy spending as its contribution to overall drug spending hit five percent for the first time in the first half of 2009, according to Medco Health Solutions, Inc. (NYSE: MHS) . Oncology specialty drug spending increased 15.1 percent last year, trailing only medications for autoimmune conditions and multiple sclerosis as a specialty drug growth driver. Driven by medications that can cost tens of thousands of dollars per course of therapy and a deep pipeline of new targeted products with fewer side effects than traditional chemotherapy, worldwide sales of these medications are expected to reach $80 billion by 2012.
 

"Targeted cancer therapies have dramatically reshaped oncology and greatly benefited cancer patients," said Dr. Robert S. Epstein, Medco's chief medical officer. "The newer cancer drugs improve survival rates since they target what fuels the cancer's growth. As some may extend life, they may be used for longer periods of time and improve quality of life for millions of patients. Due to the higher costs of these treatments, however, proper selection and dosing is extremely important."
 

Combinations of oral oncology drugs and injectable monoclonal antibodies from the biotech industry are big drivers of drug spending and this trend is likely to continue as existing treatments gain additional approvals and new drugs reach the market.
 

Presently more than 800 drugs are under investigation for treatment of cancer, which is expected to be diagnosed 1.48 million times this year. Early detection and more effective, well-tolerated medications are allowing some cancers to behave like chronic diseases. According to the American Cancer Society, cancer patients today are living longer than a generation ago with the five-year relative survival rate for all cancers combined between 1996-2004 reaching 66 percent, up from 50 percent between 1975-77.
 

Nearly all the cancer drugs approved by the Food and Drug Administration in the last four years have cost more than $20,000 for a twelve-week course of therapy, while some individual treatments can cost $10,000 per month. Oncology drugs are projected to account for 9 percent of all prescription pharmaceutical spending growth between 2009 and 2011.
 

To help manage the drug spend in the biotech drug category, in which many of the cancer treatments reside, a regulatory pathway to make lower-cost, generic versions - biosimilars - of these drugs is now under consideration in Congress. If approved, generic biotech drugs could lead to significant savings once the original brand drug loses patent.
 

Breast cancer drugs to hit market
 

Many oncology agents in late stage clinical development and several expected to receive approval in 2010 or 2011 will likely have a significant effect on specialty drug spending. Breast cancer could have an array of new treatments, including vandetanib (Zactima(TM)), motesanib, lonafarnib (Sarasar®), and pazopanib. Several of these drugs may be initially approved for other forms of cancer.
 

Supportive Care
 

Supportive care therapies that help manage the side effects of other cancer treatments represent a considerable share of cancer-related drug costs. In the case of side effects from breast cancer treatment, several treatments that suppress estrogen can contribute to the risk for osteoporosis, and oral or injectable osteoporosis drugs can reduce the risk of skeletal problems and bony metastasis. Chemotherapy and radiation treatments can create additional side effects and new drugs have entered the market to treat those problems. Drugs to treat anemia and neutropenia, both side effects associated with chemotherapy, have been on the market for years. However, supportive care therapies need special attention. Clinicians and patients need to be aware of the safety concerns associated with anemia treatments that require close attention to hemoglobin levels, and consideration of the risk of thrombosis or growth of some tumor types.
 

Medco Opens Specialized Oncology Care Center
 

Marking October as the 25th Anniversary of Breast Cancer Awareness Month, Medco is making a major commitment to advancing cancer care with the opening of the oncology Medco Therapeutic Resource Center® (TRC) in its new Indianapolis pharmacy. The oncology TRC will focus on the specialized treatment of patients with common cancers such as leukemia, breast, lung, prostate and colon, as well as pediatric cancers. In addition, Medco's new oncology TRC will assist those who are prescribed specialty drugs to maintain or improve their quality of life.
 

About Medco
 

Medco Health Solutions, Inc. (NYSE:MHS) is pioneering the world's most advanced pharmacy® and its clinical research and innovations are part of Medco making medicine smarter(TM) for more than 60 million members.
 

With more than 20,000 employees dedicated to improving patient health and reducing costs for a wide range of public and private sector clients, and 2008 revenue exceeding $51 billion, Medco ranks 45th on the Fortune 500 list and is named among the world's most innovative, most admired and most trustworthy companies.
 

For more information, go to http://www.medcohealth.com/.
 

This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the risks and uncertainties that affect our business, particularly those mentioned in the Risk Factors section of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.
 

Source: Medco Health Solutions, Inc.

CONTACT: Ann Smith, Medco Health Solutions, +1-201-269-5984,
Ann_Smith@medco.com; Janet Schiller or Bill Borden, Coyne Public Relations,
+1-973-316-1665, both for Medco Health Solutions
 

Web Site: http://www.medcohealth.com/
 

Posted: October 2009


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