Physician & Payer Forum

November 2009

The Rheumatoid Arthritis Biologics Landscape: Differentiation and Reimbursement in a Crowded Market

Introduction:

The entry of biologics with mechanisms of action that are novel to tumor necrosis factor-alpha (TNF-α) inhibition has intensified competition in the rheumatoid arthritis (RA) market and segmented the market for disease-modifying agents into the TNF-α inhibitor and the TNF-refractory markets. Both markets have multiple biological competitors, recent entrants, and late-stage agents vying for share of the total $4.9 billion opportunity (2008 U.S. sales for RA).

Scope:

Decision Resources’ Physician & Payer Forum report "The Rheumatoid Arthritis Biologics Landscape: Differentiation and Reimbursement in a Crowded Market" explores the current treatment of RA in the United States and the incremental improvements that differentiate biological competitors. We surveyed 100 rheumatologists and 20 managed care organization (MCO) pharmacy directors (PDs) to achieve the following:

- Determine what patient share novel agents, particularly Pfizer’s CP-690550, can expect to achieve within the disease-modifying antirheumatic drug (DMARD) market. Will the TNF-α inhibitor market continue to be the primary growth engine of the overall market? Will the biological DMARD market continue to expand?

- Explore physician and payer expectations for the price of novel oral agents. When given different price scenarios, what tier will payers assign these agents? What is the critical price threshold that will result in preferred brand status in most formularies?

- Understand whether Roche’s Actemra will primarily serve the TNF-refractory market or be prescribed ahead of the TNF-α inhibitors. How will this novel biologic impact Bristol-Myers Squibb’s Orencia and Biogen Idec/Roche’s Rituxan?

- Understand how the launches of Centocor Ortho Biotech’s Simponi and UCB’s Cimzia will impact sales of Amgen/Pfizer’s Enbrel, Abbott’s Humira, and Centocor Ortho Biotech’s Remicade.

- Explore why clinicians will or will not prescribe emerging biological agents. Will next-in-class biologics cannibalize their predecessors?

- Understand the extent to which medical versus pharmacy benefit coverage drives prescribing decisions.

- Glean clinicians’ and MCO PDs’ insights into the effect copay assistance programs are having on prescribing for RA. What plans do MCOs have to respond to such programs?

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