Cancer’s Cost Crisis
6/8/2004 NEW ORLEANS, LA Matthew Herper Forbes After helping to develop some of the hottest new biotech drugs, Memorial Sloan-Kettering cancer doctor Leonard Saltz has come down with a bad case of sticker shock. The price tag for treating patients has increased 500-fold in the last decade. Ten years ago, doctors could extend the life of a patient who had failed to respond to chemotherapy several times by an average 11.5 months using a combination of drugs that cost $500 in today's dollars. Now, new medicines such as Genentech's (nyse: DNA ) Avastin and Sanofi-Synthelabo's (nyse: SNY ) Eloxatin can extend survival to 22.5 months, but at a total cost of $250,000. And that doesn't include pharmacy markups, salaries for doctors and nurses, and the cost of infusing the drugs into patients in the hospital. That kind of cost is unsustainable. "Sooner or later the bubble is going to pop," Saltz says. Fears about the high cost of new drugs and the changing financial environment for treating cancer are major concerns among doctors gathered here at the annual meeting of the American Society for Clinical Oncology. Doctors are beginning to discuss treating cancer as a chronic disease that could be kept in check with a cocktail of pills. But that puts cancer drug firms on a collision course with both the private sector's crackdown on high healthcare costs in the United States and the new Medicare law, which will go into effect in less than two years. As the government [...]