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The New Zealand Medical Journal

 Journal of the New Zealand Medical Association, 02-June-2006, Vol 119 No 1235

PHARMAC and Herceptin for early-stage breast cancer in New Zealand: Herceptin or deception?
Martin Rosevear
Abstract
Pressure to fund Herceptin (trastuzumab) for use in early-stage breast cancer is a welcome development for those patients who may benefit. However such a decision would have major implications since the health gains made by trastuzumab come at a very high cost (when compared to health gains achieved by other drugs currently funded on PHARMAC’s schedule). The budget for trastuzumab (estimated to be NZ$30m/annum but this is currently being negotiated) will be funded from district health board (DHB) budgets, which will impact other patients unless DHB budgets are appropriately increased. In comparative terms, this proposed expenditure is almost the same as what is currently being spent on all other oncology agents together, and is similar to the total cost of hospital services in New Zealand regions such as Wairarapa and Marlborough.

Drug
Herceptin® (trastuzumab) (Roche)
Indication
Reduces disease progression in breast cancer with an over-expressed HER2 gene, representing approximately 15–20% of women with breast cancer.1
Patients with HER2-positive breast cancer are a relatively vulnerable group. Patients with metastatic cancer and expressing HER2 have a 50% shorter survival time relative to other patients with breast cancer, and approximately 70% of breast cancers will eventually develop into the metastatic form.5
Recommended dose & duration
Trastuzumab for the indication of early HER2-positive breast cancer is provisionally licensed for use subsequent to surgery and adjuvant chemotherapy. Following adjuvant chemotherapy (or in combination with chemotherapy with adjusted dose), an initial dose of 8mg/kg followed by 6mg/kg body weight every 3 weeks for 1 year.1
Clinical efficacy
Trastuzumab as an adjuvant treatment in early breast cancer when used sequentially to standard chemotherapy has been shown in the interim results of one published open label clinical trial to improve the disease free survival after 2 years from 77.4% to 85.8%.1

Background

Trastuzumab is a recombinant monoclonal antibody against HER2 and has been available for advanced (metastatic) stage cancer since 2001. In March 2006, New Zealand became the first country to give trastuzumab provisional approval for the aggressive HER2 form of early breast cancer.2
Media and public interest in the trastuzumab debate has been strong, both in New Zealand and internationally. A recent high court decision in the UK found the local NHS trust acted ‘irrationally and unlawfully’ when it refused to pay for Ann Marie Rogers’s treatment. The three Court of Appeal judges said there was no "rational basis" for "preferring one patient to another." They ruled that the focus should be on what a doctor felt was right for their patient. The ruling does not mean primary care trusts will be forced to provide the drug but it does set the precedent that giving the drug to some women but not others is unlawful.3

New Zealand Government policy

Government policy seeks to make cost-effective drugs and other treatments available to patients on a fully subsidised basis where health benefits have been proven in high quality evidence based trials. We understand that the district health boards (DHBs) will fund Herceptin. Therefore the DHBs must balance their existing budgets to fund this service (presumably by achieving additional efficiencies or reducing services), or DHB budgets must be increased.

Current situation

On 23 March 2006, Medsafe announced provisional approval for trastuzumab for the treatment of women with early breast cancer who test positive for the HER2 gene once they have had surgery and completed adjuvant chemotherapy. The provisional approval limited treatment to those women who have a normal heart function before treatment starts and requires women using trastuzumab to have their heart function checked by echocardiogram every three months during treatment.13
PHARMAC is currently developing its policy on trastuzumab and negotiating the terms of support. Based on costs of NZ$70,000/patient, this could see a NZ$30m/annum bill2 covering 430 patients. This should be compared to PHARMAC’s total budget in 2003 for community pharmaceuticals of $568m,11 and $47m spending by PHARMAC or DHB hospitals on all cancer agents under the ‘cancer basket’.14 In addition, it is noted that it costs approximately $30m/annum to provide hospital services to communities of 30,000+ people such as Wairarapa and Marlborough.
The decision to enter into negotiation over the subsidy of trastuzumab appears to be driven by public pressure rather than strong scientific evidence. The decision may also have implications for other users of PHARMAC’s drug schedule, who may not be as well-resourced to wage a media campaign to support their needs, as the supporters of trastuzumab are.

Economic analysis

There is one published economic analysis of trastuzumab in early breast cancer,12 but its results are difficult to interpret in the New Zealand setting; and other analyses relate to advanced disease. In 2001, the UK’s National Institute for Clinical Excellence (NICE) provided estimates of the cost of trastuzumab for advanced breast cancer ranging from £38k/QALY to £19k/QALY depending on treatment.5 A US investigation into metastatic cancer estimated US$125k/QALY.6
Currently PHARMAC’s budget enables it to fund drugs nominally up to NZ$20k/QALY, although some such as antipsychotic drugs are purchased in quantity at NZ$43k/QALY2 and small quantities are purchased at higher rates. However we understand that while PHARMAC uses cost/QALY results as part of its funding consideration, it has no cost/QALY threshold which automatically ensures funding.
The recent results reported from trials (Piccart-Gebhart et al (HERA trial)1 and Romond et al)7 involving early breast cancer indicate possibly stronger health gains.
However PHARMAC’s PTAC Advisory Committee has indicated the following concerns with these results:8
  • The HERA results were interim, and both the benefit and safety data for early breast cancer are premature;
  • Both papers have omitted to publish all results;
  • The Romond paper omitted to publish the treatment arm that was directly relevant to this indication. Therefore they considered efficacy results of the paper were found to be of limited value; and
  • The risk of cardiotoxicity had to be especially managed and in the case of early disease, the addition of trastuzumab could put at risk patients who would otherwise have survived.
However in an effort to provide some estimate of trastuzumab’s impact on early-stage breast cancer, we have used data from the Romond paper to provide a hypothetical estimate of cost/QALY results. Survival results at four years have been combined with the effects of aging as observed in the life expectancy for women in the general population10 to extrapolate a very simplistic picture by the authors of this paper:
Indications are:
  • 50 years is the average age at diagnosis for HER2-positive breast cancer patients who have an average life expectancy of perhaps 8 years, versus 35 years calculated life expectancy for women of the same age in the general population.
  • The trastuzumab arm shows a hypothetical benefit of approximately 1.6 years, versus patients receiving standard treatment only. This benefit is the area between the two treatment curves in the graph above.
But this simplistic analysis raises a number of questions:
  • How long does the therapeutic value of trastuzumab last? Does the differential reported in the trials persist, or are their latent toxic effects yet to be observed which could reduce or totally remove any persistent benefits for trastuzumab? For instance it is known that trastuzumab is cardiotoxic, with approximately 20% discontinuing trastuzumab treatment due to cardiac problems in the Romond trials, and a further 14% discontinuing for other reasons (noting that Romond results were for a different regimen). Will the death rate from heart failure or other toxic side-effects remove short-term benefits in the longer term?
  • Will additional courses of trastuzumab be required to increase persistence?
Therefore when estimating a $/QALY for early breast cancer, uncertainty exists in the following issues:
  • Increase in life expectancy due to trastuzumab in the long-term, and associated savings due to delays in recurrence or terminal cares;
  • The quality of life (relative to a normal population) that is provided during those extended years following treatment. Adjustments between 30% to 50% to convert extended life in metastatic cancer to the normal population have been used;5
  • The duration of treatment required to obtain long-term benefits; and
  • NZ$/patient cost of a course of trastuzumab.
Given the uncertainties above, it can be estimated that the cost per QALY could lie somewhere between:
NZ$88k and NZ$100k+
...where the lower bound has been estimated using the analysis above (without adjusting for other costs/savings nor quality of life) and the upper bound has been estimated using the published results for metastatic cancer. Note that this estimate has not allowed discounting of future costs and benefits (standard for such analyses), which would likely mean an increase in the cost/QALY.

Comment

Evidence suggests trastuzumab can bring benefit to early-stage breast cancer in the short-term. However, these benefits come at a high cost, which appear to be above the margin at which PHARMAC has historically subsidised drugs. As such, funding of trastuzumab could come at a high cost to other users of publicly funded pharmaceuticals and other health services.
Disclosures: None.
Author information: Martin Rosevear, Director, Outcome Management Services (a consultancy specialising in health and public sector economics), Wellington
Correspondence: Martin Rosevear; Outcome Management Services, 42 Seaview Rd, Paremata, Wellington. Email; martin.rosevear@omsl.co.nz
References:
  1. Piccart-Gebhart MJ, Procter M, Leyland-Jones B, et al. Trastuzumab after adjuvant chemotherapy in HER2-positive breast cancer. N Engl J Med. 2005;353:1659–72. Available online. URL: http://content.nejm.org/cgi/content/full/353/16/1659 Accessed June 2006.
  2. Hayman K. Warning over Herceptin hype. Christchurch: The Press; 2006. Available online. URL: http://www.stuff.co.nz/stuff/0,2106,3621782a7144,00.html Accessed June 2006.
  3. Martin N. Woman wins fight for breast cancer drug. London: Daily Telegraph (UK); 2006. Available online http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2006/04/13/nhercep13.xml Accessed June 2006.
  4. Metcalfe S, Dougherty S, Brougham M, Moodie P. PHARMAC measures savings elsewhere to the health sector . N Z Med J. 2003:116(1170). URL: . http://www.nzma.org.nz/journal/116-1170/362/
  5. National Health Service. TA34 Breast cancer – trastuzumab: Guidance. London: National Institute for Clinical Excellence (NICE); 2002. Available online. URL: http://www.nice.org.uk/page.aspx?o=29280 Accessed June 2006.
  6. Elkin EB, Weinstein MC, Winer EP, et al. HER-2 Testing and Trastuzumab Therapy for Metastatic Breast Cancer: A Cost-Effectiveness Analysis. Journal of Clinical Oncology. 2004;22:854–63. Available online. URL: http://www.jco.org/cgi/content/full/22/5/854 Accessed June 2006.
  7. Romond EH, Perez EA, Bryant J, et al. Trastuzumab plus Adjuvant Chemotherapy for Operable HER2-Positive Breast Cancer. N Engl J Med. 2005;353:1673–84. Available online. URL: http://content.nejm.org/cgi/content/full/353/16/1673 Accessed June 2006.
  8. PTAC meeting minutes for February 2006. Wellington: PHARMAC; 2006. Available online. URL: http://www.pharmac.govt.nz/pdf/ptacmins.pdf Accessed June 2006.
  9. Survival results of Romond paper can be found at: http://content.nejm.org/cgi/content/full/353/16/1673
  10. Statistics New Zealand. Total Female Population Life Table 2000-2002. Available online. URL: http://www.stats.govt.nz/NR/rdonlyres/8EA99547-7E92-4FDB-9BCB-4F2807914AC2/0/App1Tables.xls [Click on Table A1.2 tab at the foot of the spreadsheet.] Accessed June 2006.
  11. PHARMAC Annual Plan 2004/2005. Wellington: PHARMAC; 2004. Available online. URL: http://www.pharmac.govt.nz/pdf/AP2005.pdf Accessed June 2006.
  12. Neyt M, Albrecht J, Cocquyt V. An economic evaluation of Herceptin in adjuvant setting: the Breast Cancer International Research Group 006 trial. Ann Oncol. 2006;17:381–90.
  13. Media release. Herceptin (trastuzumab) provisionally approved. Wellington: Ministry of Health; 2006. Available online. URL: http://www.moh.govt.nz/moh.nsf/by+unid/6C8344DC08AE29C9CC257139007FA389?Open Accessed June 2006.
  14. Media release. Cancer drug funding a challenge – PHARMAC. Wellington: PHARMAC. Available online. URL:http://www.pharmac.govt.nz/pdf/071205a.pdf Accessed June 2006.
     
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