Citing “unreasonable price,” New Zealand declines eculizumab funding

New Zealand’s Pharmaceutical Management Agency PHARMAC has declined the funding application for eculizumab for paroxysmal nocturnal hemoglobinuria (PNH), a rare blood disorder.

The main reason for this decision is that the price being sought by US-headquartered Alexion Pharmaceuticals (Nasdaq: ALXN), supplier of the drug sold under the Soliris brand name, is too high for PHARMAC to justify funding in light of other available funding options.

PHARMAC chief executive Steffan Crausaz says the price being asked by Alexion is NZ$670,000 ($544,177) per patient per year, making it one of the most expensive drugs PHARMAC has ever assessed “but it’s not the most effective and that’s the core of the problem.”