New cancer drug could bring billions of dollars to Bayer

Frankfurt – Bayer and its biotech partner Loxo Oncology launch a new anti-cancer drug in the United States. The US Food and Drug Administration (FDA) approved Monday the approval of the drug larotrectinib. Analysts estimate that the product, which will be sold under the name of Vitrakvi, will generate sales of about one billion dollars (880 million euros) per year.

The drug can be used to treat many cancers whose tumors are affected by a rare genetic mutation. Bayer applied for European Union approval in August.

Treatment should cost $ 32,800 per month

In the United States, treatment with the drug is expected to cost $ 32,800 per month. Bayer and Loxo provided financial support to patients and reimbursement if no clinical benefit occurred within 90 days of treatment. The rare genetic mutation of tumors occurs in the United States in no more than 3,000 people a year or in less than 1% of cancer patients with solid tumors. At present, most cancer patients are not routinely tested for tumor mutations, making it difficult to find people who may benefit from the drug. However, Bayer is hoping for an increase in these tests.

Larotrectinib originates from the Loxo Oncology laboratories. At the end of 2017, Bayer entered into an alliance with the American biotechnology company for the joint development and distribution of the drug and another active ingredient. As part of this cooperation, Loxo is asking Bayer for payments of up to $ 1.6 billion. Leverkusen is responsible for the worldwide marketing activities of larotrectinib outside the United States. In the United States, Bayer and Loxo Oncology will jointly distribute the product. (APA / Reuters)