In the first test of a new law designed to lower drug costs, a New York state panel voted unanimously to seek an additional rebate for a pricey cystic fibrosis drug for the state Medicaid program.
The decision comes in response to concerns that the medicine, which is called Orkambi and has a list price of $272,000, may cause the state Medicaid program to exceed a cap on drug spending. In a 10-to-0 vote, the state Department of Health was authorized to negotiate with Vertex Pharmaceuticals (VRTX) for a rebate that would bring the cost down to about $83,200 and match cost effectiveness estimates.
Unlock this article by subscribing to STAT Plus and enjoy your first 30 days free!
GET STARTEDWhat is it?
STAT Plus is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.
What's included?
- Daily reporting and analysis
- The most comprehensive industry coverage from a powerhouse team of reporters
- Subscriber-only newsletters
- Daily newsletters to brief you on the most important industry news of the day
- Online intelligence briefings
- Frequent opportunities to engage with veteran beat reporters and industry experts
- Exclusive industry events
- Premium access to subscriber-only networking events around the country
- The best reporters in the industry
- The most trusted and well-connected newsroom in the health care industry
- And much more
- Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.
About the Author Reprints
