Cost-effectiveness of Spravato can limit its uptake in MDD market

Following the recent US Food and Drug Administration  approval of Spravato (esketamine) nasal spray, from US healthcare giant Johnson & Johnson’s (NYSE: JNJ) Janssen Pharmaceuticals unit, GlobalData’s pharma analyst Alessio Brunello, says that the drug “has the potential to make a significant impact on the treatment of many major depressive disorder (MDD) patients who have been unresponsive to current antidepressant therapy, as none of the previous marketed products for depression can demonstrate rapid antidepressant effects.”

However, he points out that the high price of the therapy can limit its uptake as evidence showed non-significant benefit in terms of cost-effectiveness. Results from a study by US cost-effectiveness watchdog the Institute for Clinical and Economic Review (ICER) showed that Spravato is estimated to cost $198,000 per quality-adjusted life year (QALY) gained, exceeding the commonly cited cost-effectiveness thresholds of between $50,000–150,000 per QALY.

“Moreover, the similarity of Spravato to ketamine, a relatively inexpensive anesthetic that has been prescribed off-label by some psychiatrists, can significantly affect the market of Spravato,” he concluded.