((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Added analyst comments to paragraphs 8 and 10) by Pratik Jain
Verona Pharma VRNA.O said Thursday its treatment for a chronic and life-threatening lung disease will have a wholesale price of $2,950 per month, above the cost-effectiveness range estimated by a drug pricing watchdog .
The U.S. health regulator gave the go-ahead Wednesday to the therapy, known as Ohtuvayre, which offers patients with chronic obstructive pulmonary disease (COPD) a new, non-steroidal inhaled treatment.
This is the first new treatment for this inflammatory disease in more than ten years. Regeneron rivals
REGN.O and Sanofi SASY.PA are also racing to win approval for their anti-inflammatory drug Dupixent for the treatment of COPD in some patients.
COPD, which causes difficulty breathing, affects nearly 16 million Americans and is the sixth leading cause of death in the United States, according to government data.
Ohtuvayre’s annual wholesale price of about $35,000 is above the break-even point of $7,500 to $12,700 estimated by the nonprofit Institute for Clinical and Economic Review. influential that evaluates clinical trials and drug prices.
The list or wholesale price is not necessarily the price paid by the patient, because it does not include discounts granted by insurance.
Verona did not immediately respond to a Reuters request for comment on the therapy’s price.
“The price is about what you would expect, because it is a new product. It works in patients who have nothing else to try, and avoids some side effects in other patients who might try other drugs,” said Thomas Shrader, an analyst at BTIG.
The treatment is designed to relax the muscles surrounding the airways, making breathing easier, while reducing inflammation in the lungs without the use of steroids.
The treatment’s price is higher than Wall Street expectations, with the brokerage expecting $1,400 a month, said Andrew Tsai, an analyst at Jefferies, adding that could be linked to higher sales potential.
Verona, headquartered in London, expects the therapy to be available in the third quarter in the United States.
Shares of the U.S.-listed company were up 2.7 percent at $15.
