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The value of innovation: the economics of targeted drugs for cancer

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Abstract

Oncology therapeutics have entered a new era, with the recent approval by the US Food and Drug Administration of 16 novel targeted agents. In many instances, these agents have led to breakthroughs in cancer care, such as imatinib for the treatment of chronic myeloid leukemia and bevacizumab for the treatment of colorectal, lung, and breast cancers. Toxicities of targeted agents are also novel-no longer primarily resulting in hematologic, gastrointestinal, and skin toxicities. As with all new and innovative therapies, the price tags for these agents are substantial, ranging from a mean per person annual cost of $13,000 to $100,000 in many cases. Despite the high cost of these drugs, the value of these agents has been important. In this paper, we review the concepts of value and cost effectiveness as they apply to targeted cancer agents and provide some initial insights on the economics of targeted oncology drugs.

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Authors and Affiliations

  1. The Division of Hematology/Oncology, Feinberg School of Medicine, Northwestern University, Chicago, IL, USA

    Cara C. Tigue, Karen A. Fitzner, Motasem Alkhatib, Eric Schmid & Charles L. Bennett

  2. The Robert H. Lurie Comprehensive Cancer Center of Northwestern University, Chicago, IL, USA

    Cara C. Tigue, Karen A. Fitzner, Motasem Alkhatib, Eric Schmid & Charles L. Bennett

  3. VA Center for Management of Complex Chronic Care, Jesse Brown VA Medical Center, Chicago, IL, USA

    Cara C. Tigue & Charles L. Bennett

  4. Northwestern University, 303 E. Chicago Avenue, Olson Pavilion, Suite 8250, Chicago, IL, 60611, USA

    Charles L. Bennett

Authors
  1. Cara C. Tigue
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  2. Karen A. Fitzner
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  3. Motasem Alkhatib
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  4. Eric Schmid
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  5. Charles L. Bennett
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Corresponding author

Correspondence to Charles L. Bennett.

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Tigue, C.C., Fitzner, K.A., Alkhatib, M. et al. The value of innovation: the economics of targeted drugs for cancer. Targ Oncol 2, 113–119 (2007). https://doi.org/10.1007/s11523-007-0043-8

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  • DOI: https://doi.org/10.1007/s11523-007-0043-8

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