New York to consider further Medicaid rebates on Orkambi

A New York state panel will meet April 26 to discuss whether to impose a supplemental rebate to lower the cost of cystic fibrosis drug Orkambi ivacaftor/lumacaftor from Vertex Pharmaceuticals Inc. (NASDAQ:VRTX). The Drug Utilization Review board scheduled the meeting after the state determined that Orkambi is contributing to expenditures exceeding the state's annual Medicaid drug spending cap.

A supplemental rebate would be in addition to the automatic 23.1% discount off Orkambi’s list price afforded to state Medicaid programs under federal law. In the U.S., the annual wholesale acquisition cost (WAC) of Orkambi is $271,950...