CEO Mark Goldsmith said discussions with insurers gave the company confidence that they understand the drug’s clinical value.
- The CEO estimated that about 55,000 new cases of metastatic pancreatic cancer are diagnosed annually in the U.S.
- RBC Capital raised RVMD’s target to $251 from $203 and maintained an ‘Outperform’ rating, according to The Fly.
- The brokerage expects limited resistance from insurers and a ‘very rapid’ launch of the drug.
Revolution Medicines (RVMD) CEO Mark Goldsmith expects insurers to quickly cover the $39,800-monthly Rasonque drug following its approval for advanced pancreatic cancer.
“We believe that payers, including both private insurers and Medicare, will move swiftly to provide coverage,” Goldsmith told CNBC. He added that months of discussions with insurers gave the company confidence that they understand the drug’s clinical value.
“We’ve had engagement with all of these parties over the preceding months, and we believe they recognise the important value, the high differentiation of this compound, and that they’ll make this drug available quickly,” Goldsmith said.
The CEO estimated that about 55,000 new cases of metastatic pancreatic cancer are diagnosed annually in the U.S.
At the time of writing, RVMD shares were up around 1.8%.
Rasonque Reduces Risk Of Death By 60%
Goldmith’s comments comes after the the U.S. Food and Drug Administration (FDA) on Wednesday approved Rasonque as a once-daily tablet for adults with metastatic pancreatic adenocarcinoma.
In the Phase 3 RASolute 302 trial, patients receiving Rasonque lived for a median of 13.2 months, compared with 6.7 months for those on standard chemotherapy. The treatment reduced the risk of death by 60%.
RBC Capital Sees Rapid Launch Despite Price Point
Revolution Medicines set a wholesale price of $39,800 for a 30-day supply, which is roughly $477,600 annually before discounts, rebates, or assistance.
Goldsmith said patients’ actual expenses would depend on their insurance, Medicare or Medicaid status and available financial support.
“We have implemented a comprehensive patient support program to help patients gain rapid access,” he added.
Meanwhile, RBC Capital raised its target to $251 from $203 and maintained an ‘Outperform’ rating, according to The Fly. This implies a potential upside of 14%.
The firm said Rasonque’s price exceeded expectations and could provide financial upside. RBC also expects limited resistance from insurers because patients have few alternatives, which could support a “very rapid” commercial rollout.
Retail Turns ‘Extremely Bullish’ On RVMD
Retail sentiment surrounding RVMD on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, amid a 580% surge in message volumes.
The stock has gained around 178% so far this year.
Also read: IBRX Stock Heads For Best Week In Over 2 Months After Chairman Soon Shiong’s Cancer Vaccine Trial Milestone Update
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