In all probability, sensorineural noise-induced hearing loss treatment with FX-322 in the United States would not be covered by most individuals insurance plans with their employers or Medicare for that matter. There is a huge market out there for FX-322 and insurance companies will most likely steer clear with little coverage.
Lending sources such as CareCredit would likely be available for anyone with a reasonable good credit standing to help cover the cost of treatment with a payment plan.
It's my guess that this will be the reality but still well worth it!
This makes good sense and is also helpful info.
All I can say is that if it's released here in Australia they better offer a fair price, as various bodies here would frown on $5k price tag on drugs for people with severe hearing loss and such things. But another part of me wishes they'd just release the thing onto the market, as I could really use a pill just to start making all this go away...
As an Australian myself, I have learnt over time from researching and travelling that often the costs of non-PBS treatments (for those non-Australians, non-PBS means the cost of a pharma treatment not covered by the government) are often quite a lot higher than they cost in other countries. Furthermore medicines generally can be quite expensive even from an Australian pricing perspective.
One of the reasons I think that this happens is because like with most other things sold in Australia, Australians are rightly or wrongly seen to have the ability to pay a higher amount for stuff. Just look at things like the cost of food and utilities for example, when compared to many other places. The same thing happens with both the government subsidised and non-government subsidised medications. For example a packet of antibiotics costs $9.60 in Australia whereas in the Philippines it costs about $2 or $3.
I think that the unfortunate reality is that FX-322 is going to be around the $5,000 price point for two main reasons.
Firstly, this cost is comparable to the alternative treatment of a hearing aid. As a result Frequency Therapeutics know that people potentially will pay this sort of price for this treatment and therefore they can comfortably charge this.
Secondly, FX-322 will be under patent. Therefore firms like Frequency Therapeutics can usually charge what they want within reason, as they effectively have a monopoly on a treatment for the patent's duration. The reality is that Frequency Therapeutics is going to ensure that they are profitable from selling FX-322, as it is one of the two key aims of a pharmaceutical company (along with producing good treatments) and thus the price will reflect this aim.
However, Frequency Therapeutics also needs to recover all medicine development expenses first to enable it to turn a profit. As a result the medicine needs to be sold at a price which enables it to recover both development costs and also turn a profit in a relatively speedy manner. The main way pharma companies such as Frequency Therapeutics can do this is by following the new mobile phone pricing model just like how Samsung does when they release a new Galaxy Phone for example.
People want the new Galaxy immediately for a number of reasons such as the phone's look and better features. Therefore they will pay more money to get their hands on it earlier because they want the new technology and new product now. Samsung takes advantage of this by charging the maximum price that they know people will pay for this phone and holds the phone at that price until they have recovered enough money from sales to not only cover the costs of the phone's development but also to allow them to maximise profit from it. After the phone has been out for a while and Samsung feels that it has maximised benefit from it, Samsung will reduce its price.
The same scenario should play out with how Frequency Therapeutics prices FX-322.
However, instead of reducing the price per unit for individual customers (patented medicine holds its value for the duration of the patent, unless some superior medicine comes out), Frequency Therapeutics may be willing to enter into bulk buying discounts with pharmacy store groups or with governments so the treatment can be provided at a reduced cost. This happens regularly in Australia with many medicines and is the most likely way which we would be able to buy FX-322 at a discount.
Australian Government deals with pharma companies to get discounted medicines. It already happens with medicines like the flu shot and also a number of heart medicines. Heart medicines are probably the best example because they have been able to eliminate the need for people to have more expensive heart surgeries in many instances. This is because the medicine works just as well as, if not better than the surgery in a number of cases and yet is significantly cheaper. If FX-322 can demonstrate that it can provide a significant benefit to people which would reduce hearing aid use then it probably would be subsidised. The interest from Frequency Therapeutics at looking at age-related hearing loss (which is probably not much different to the hearing loss FX-322 is looking at currently) is probably the most relevant case as the government would certainly subsidise this since they already have hearing aid programs now which they fund. So just like in the case of the heart medicine, this would mean that FX-322 would be better than the current option. Thus the government would be much more likely to pay for it also.
Given that FX-322 is a novel treatment with seemingly high demand, I cannot see Frequency Therapeutics reducing the cost of it at all initially under any circumstance.
Furthermore, it is blatantly obvious that there are a significant number of factors which indicate FX-322 will be relatively expensive as highlighted above.
This sucks as it is going to mean a significant outlay of money to purchase FX-322, however I strongly feel that all the data and all the analysis points to the fact that people will pay a substantial amount for FX-322 and both customers and Frequency Therapeutics know this. Thus it will be priced accordingly.