Vertex sales and marketing update

On Dec. 1, 2014, Vertex’s Kalydeco ivacaftor was listed on the Australian Pharmaceutical Benefits Scheme (PBS) under a pay for performance arrangement, which provides reimbursement for eligible cystic fibrosis patients at least six years old with G551D or other gating mutations in the CF transmembrane conductance regulator ( CFTR) gene. In March 2014, the Pharmaceutical Benefits Advisory Committee (PBAC) reiterated a recommendation that at Vertex’s proposed price, Kalydeco is only cost-effective in patients who respond to the same extent and duration as shown in clinical trials. PBAC recommended listing Kalydeco on the PBS for reimbursement on a “pay for performance” scheme, under which the price paid by the government varies depending on the magnitude of the benefit gained by patients, in recognition that not all patients respond equally to treatment. Vertex submitted a proposal in response to the PBAC recommendation to the Australian Department of Health in May but declined to disclose details. Subsequently, Vertex agreed to proceed with the PBS listing as recommended by the PBAC, subject to a confidential risk-share arrangement. The Australian Department of Health did not provide additional details on whether or not the final pay for performance agreement had changed. Vertex did not respond to questions. ...