Is insurance likely to cover FX-322 if it shows meaningful reduction in TFI for patients?
If FX-322 receives approval for hearing loss, but not tinnitus (because while studied, the company hasn't sought FDA approval for tinnitus), then likely no.
This is actually the scenario we want!
The reason is, when a company develops a drug, it has to decide how broad its approval request will be. From the company's perspective, it's a gamble. Let's say they think their new drug will treat 3 things, 1 thing solidly, and 2 things likely. If they seek and receive FDA approval for all 3 things, then they stand to make insurance-reimbursable profits from all 3 conditions from the get go.
However, as I understand it, if 1 of those conditions doesn't pan out during the approval process, it can stall the entire application, even if 1 condition is solidly positive, thus delaying the drug's entrance into the market.
So the company has to make a decision: do they pursue approval for only the condition they feel most confident about first, the low hanging fruit, generating potentially X dollars per year, or do they get more ambitious (or greedy) and seek approval for additional conditions to generate XYZ dollars per year.
For FX-322, improvement with hearing loss is likely easier to establish than improvement with tinnitus.
Therefore, assuming FX-322 also helps with tinnitus, what gets it to tinnitus sufferers ASAP is for the drug to receive approval for hearing loss first - the fastest, most reliable route to market. At that point, it can be prescribed off-label for tinnitus, although it will likely not be covered by insurance.
And nothing stops the company from running additional trials, even after it's approved for hearing loss, to broaden the scope of insurance-reimbursable conditions to potentially include tinnitus. But in the meantime, it's available.
One last thought: assuming FX-322 is approved for hearing loss, it helps with tinnitus, insurance doesn't cover it, and it's expensive, Frequency Therapeutics, as many drug companies do, might have a program to provide it at a discount for patients with financial hardship.