ICER says price of tardive dyskinesia drugs far exceed benefit

In an evidence report released Tuesday, the Institute for Clinical and Economic Review said the prices of tardive dyskinesia drugs Ingrezza valbenazine and Austedo deutetrabenazine need to be discounted by about 90% to align with the benefit provided to patients. Neurocrine Biosciences Inc. (NASDAQ:NBIX) markets Ingrezza, while Teva Pharmaceutical Industries Ltd. (NYSE:TEVA; Tel Aviv:TEVA) markets Austedo.

In its report, ICER concluded that both drugs' cost-effectiveness ratios far exceed the commonly accepted threshold of $50,000-$150,000 per quality-adjusted life year (QALY) gained. The committee said Ingrezza's incremental cost-effectiveness ratio is $752,000 per QALY gained, based on an annual wholesale acquisition cost (WAC) of $75,789, and Austedo's incremental cost-effectiveness ratio is $1.1 million per QALY gained, based on its annual WAC of $90,071...