< PreviousPARTNERSHIPS 30 Pharma Business International www.pbiforum.net disease treatment. Collaboration in research sees similar moves, with Phio Pharmaceuticals announcing that it has expanded its research collaboration with the Karolinska Intitutet in Stockholm into decreasing immune-inhibitory factors in the tumor micro-environment. Collaboration is usually undertaken with a clear view for profitability in sight, especially where two manufacturers are pooling potentially valuable knowledge that needs to be protected. This isn’t always the case, however, and some organisations – noticeably in the medical research field – instead pool their knowledge and resources to create a repository of information available to others. Universities very commonly collaborate with not only other universities, but also pharmaceutical companies. Naturally collaboration is not without risk, and it is perhaps this which prevents global initiatives that could pool vast resources together. The pharma industry is, at the end of the day, commercial in nature, and there are those who would seek to use the competitive advantage to their own benefit. Agreements and contracts within collaborative agreements are always important, but it is still difficult to close off all angles. This is the reason why many collaborations take place between two organisations at a time, with rare examples moving up to three or even four. They also often take place internationally – with the recent collaboration announced between the University of Texas MD Anderson Cancer Center, Artios Pharma Limited and ShangPharma Innovation serving as a positive example. Working on an ATR inhibitor program, the treatment has potential to be a DNA damage response (DDR) targeted treatment in cancer. Such collaboration is of key importance to not only the industry as a whole – but also the future of pharmaceutical research. In an era where pathogens are becoming increasingly resistant to standard antibiotics, research into new treatments is only going to become increasingly difficult and thus increasingly expensive. Collaborations are sometimes the only way for individual organisations to punch above their weight. One of the biggest issues in the way of partnerships and collaboration is naturally that of trust. It isn’t exactly easy to convince companies who compete with one another to work together, especially on something that may or may not yield profitable results. 28-31.qxp_Layout 1 02/12/2019 10:29 Page 3Pharma Business International 31 www.pbiforum.net PARTNERSHIPS © Shutterstock /Dragon Images 28-31.qxp_Layout 1 02/12/2019 10:29 Page 4PURCHASING 32 Pharma Business International www.pbiforum.net Finding the right price point There’s plenty to consider for health bodies when purchasing new treatments for patients, as we explore. 32-35.qxp_Layout 1 02/12/2019 10:31 Page 1Pharma Business International 33 www.pbiforum.net PURCHASING © Shutterstock /pogonici T he procurement of drug treatments and medical devices is by no means an easy process for health bodies and service providers. As well as the regulatory and legislative issues to consider, there’s also financial concerns to take into account, all of which can jeopardise a new treatment being put on the NHS and putting patients at risk. One of the first things to consider in the procurement of any prospective medicine or treatment is to estimate the quantity of each drug product required for a given period. This is particularly important for seasonal illnesses such as flu. In these cases, previous years can be used as a watermark to estimate the quantity needed, but as has been evidenced before, not estimating enough can prove disastrous. By the same rationale, procuring too much risks eating up budget which could be better spent elsewhere. Of course, price is one of the biggest considerations here, with procurement dependent on finding the prices of the different storage forms required. Price comparison should also be considered, where available, when considering a brand name over generics. A compelling body of evidence confirms that generics are the equal of their branded counterparts, with the only difference typically one of price and patent. When a drug maker has the patent for a treatment it holds exclusivity and can therefore charge whatever price it deems appropriate. Generics, on the other hand, are often significantly cheaper and can enable health care providers – such as the NHS – get more for the money, stretching an already fraught budget that bit further. Budgeting is critical, so procurement depends on allocating funds for each drug dosage form. This will depend on the priority nature of the drug and dosage form – i.e. ones with the greatest need and demand – and available finances. Suffice it to say, there’s a lot to consider and in this carefully considered process there’s plenty that can go wrong, and controversy can arise. 34 Á 32-35.qxp_Layout 1 02/12/2019 10:31 Page 2PURCHASING 34 Pharma Business International www.pbiforum.net Case study – Vertex verses the NHS Boston, Massachusetts-based biopharmaceutical company, Vertex, is best known for its life-extending cystic fibrosis drug Orkambi (lumacaftor- ivacaftor) for patients with two copies of the F508del mutation. More recently, however, it has become embroiled in price discussions with the NHS over the cost of this treatment in the UK, which has the second highest prevalence of cystic fibrosis of any country in the world. The treatment comes with the annual price tag of £100,000 which, as the Department of Health and Social Care (DHSC) said, puts it “out of reach of patients”. For more than three years, Vertex has gone back and forth with the NHS in negotiations with the latter wanting £105,000 per patient per year for the drug, significantly higher than the maximum guideline put down by the NHS of £30,000 per quality-life adjusted year per patient. The NHS countered with its largest ever commitment ever made, offering £500 million for the drug over a five-year period. Vertex rejected the offer. Earlier this year, parents of patients with cystic fibrosis worked alongside medicines campaign group, Just Treat, to pressure Government to use its legal power to curtail Vertex’s market dominance. According to the campaign group, the price of an Orkambi generic would cost significantly less than the branded option, coming in at under £5,000 per patient per year – well within the NHS’s specified budget. In fact, the group’s calculations claim that this price point would allow all patients in the UK to access to medicine and save the NHS almost £4 billion over the next decade. In February, conservative MP Bill Wigging called on Government to involve Crown Use – which provides special copyright rules for government departments and state entities – in an adjournment in the House of Commons in a move intended to pave the way for an Orkambi generic. Something that Vertex cautioned against. Against the controversial backdrops of campaigns, corporate greed and patent exclusivity, NHS England reached a definite agreement with Vertex in October to make all three of their UK-licenced cystic fibrosis medicines available. The agreement provides access to all three drugs - Orkambi, Symkevi and Kalydeco – for all current licensed indications, as well as future licence extensions too. According to NHS England, it was able to finalise the negotiation because Vertex agreed “confidential commercial terms” and agreed to submit its drugs for full appraisal of the National Institute for Health and Care Excellence (NICE). Health Secretary Matt Hancock described the deal as “great value for money for the NHS”, adding it “will improve thousands of lives”. He also held up the deal as proof of the UK’s drug purchasing prowess, saying the deal “shows why we get some of the best value drugs in the world”. Certainty, it was a watershed moment in how drugs are procured and how purchasing negotiations are handled in the UK with NHS Chief Executive Simon Stevens saying, “any drug company wanting to succeed commercially in this field needs to work constructively with the NHS”. 32-35.qxp_Layout 1 02/12/2019 10:31 Page 3Pharma Business International 35 www.pbiforum.net PURCHASING © Marbury / Shutterstock.com 32-35.qxp_Layout 1 02/12/2019 10:31 Page 4Wednesday 15 – Thursday 16 January 2020 Pre-Filled Syringes 2020 Copthorne Tara Hotel, London Kensington As Europe’s leading pre-filled syringes conference, this important event will assess innovations in design controls and applications, enhancement of human factors and optimising formulation and containment. It also offers peer-to-peer networking with major industry players. To find out more, email events@smi- online.co.uk. Tuesday 28 – Thursday 30 January 3020 4th CCP Summit 2020 Boston, US The CCP Summit brings together small molecules and biologics experts under one roof for knowledge and experience exchange. Highlights this year include the FDA revealing its ‘Advanced Manufacturing for Complex Biologics Products’ programme and Amgen and Merck offering insight into the virtual plant development and continuous manufacturing respectively. For more Pharma EVENTS © Shutterstock / PopTika 36 Pharma Business International www.pbiforum.net © Shutterstock/Yurchanka Siarhei molecular biomarkers such as circulating tumour DNA (ctDNA) and protein-based circulating biomarkers. There’s much interest in the potential of ctDNA for developing biological fluid-based biopsies and the presenters in this event bring together the most up to date information and current state of the field. For more information, email info@epmgroup.org. information, visit www.continuous- processing-pharma.com. Wednesday 5 – Thursday 6 February 2020 Pharmapack Europe Paris Expo, Porte de Versailles, France Since launching in 1997, Pharmapack has been one of the key meeting places for the pharma packaging and drug delivery industry. It now boasts well over 400 exhibiting companies and some 6,000 attendees from 75 different countries. The unique combination of exhibition floor, semi-scientific conferences and a dedicated spotlight for innovations allows you to focus on networking and information gathering to help move your business forward. To find out more, visit www.pharmapackeurope.com. Thursday 20 – Friday 21 February 2020 Liquid Biopsy 2020 Lisbon, Portugal The Liquid Biopsy 2020 conference focusses primarily on biofluid-based Monday 20 – Tuesday 21 January 2020 Pharmaceutical Microbiology UK Copthorne Tara Hotel, London SMi’s 9th Annual Conference will explore novel and developing technologies that tackle the most pressing challenges and push innovation in a world of pharmaceutical microbiology. To find out more, visit https://bit.ly/2D0oh30. 36-37.qxp_Layout 1 02/12/2019 10:32 Page 1Wednesday 26 – Friday 28 February 2020 Cell Therapy Manufacturing Asia Westin Miyako Kyoto, Japan This is the only cell and gene therapy event in Asia to help you fast track manufacturing and commercialisation across borders. With a packed agenda and expert speakers, this is the event to attend. For more information, visit https://bit.ly/33396jX. Wednesday 11 – Thursday 12 March 2020 Pharmaceutica 2020 Rome, Italy Following the success of last year’s conference, Pharmaceutica 2020 is a hotly anticipated calendar highlight. It will include a wider range of keynote presentations, oral talks, poster presentations, symposia, workshops, exhibitions and career development programmes. For more information, email europe@conferenceseries.com. Wednesday 18 – Thursday 19 March Injectable Drug Delivery 2020 Rembrandt Hotel, London This seminar has been designed for all those working in the industry to discover the next generation of injectable drugs and delivers. It will provide an update on the latest trends, technologies and applications. To find out more, email info@management-forum.co.uk. www.pbiforum.netPharma Business International 37 © Shutterstock/alex7370 Monday 13 – Wednesday 15 January Biotech Showcase Hilton San Francisco Union Square, US With more than $400 billon in capital represented, Biotech Showcase is one of the industry’s leading investor conferences expecting more than 3,7000 attendees, 2,220 companies and over 1,000 investors. For more information, visit www.ebdgroup.knect365.com/biotech-showcase. Monday 3 – Thursday 6 February 2020 Medlab Middle East 2020 Dubai World Trade Centre, UAE Long established as the must attend event in the region, Medlab Middle East is where the world of laboratory medicine meets. Meet plenty of likeminded professionals, grow your network and come face-to-face with some of the most exciting innovations in the industry. To find out more, visit www.medlabme.com. 36-37.qxp_Layout 1 02/12/2019 10:32 Page 2FEATURES Antibiotic exposé Blockchain Exploring antibodies Nuclear medicine Drug discovery Vaccines Next issue: Deadline - 29th January 2020 REGULARS News Events M&A Round-up Eye on approvals Visit us at www.pbiforum.net where you’ll find the latest news as it breaks – and why not subscribe to our newsletters so you can have the latest news emailed to your inbox, in between printed issues? @pbiforumwww.pbiforum.net company/po-business-international 38.qxp_Layout 1 02/12/2019 10:33 Page 1Next >