Breakingviews - Three reasons a wonder drug can cost $5 mln

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Breakingviews - Three reasons a wonder drug can cost $5 mln
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(Reuters Breakingviews) - Novartis's gene therapy for spinal muscular atrop...

Pharmaceutical tablets and capsules in foil strips are arranged on a table in this picture illustration taken in Ljubljana September 18, 2013. REUTERS/Srdjan Zivulovic

Health economists often measure a therapy’s value by putting a value of an individual living one year of good health. Countries, and increasingly insurers, use this approach. Novartis Chief Executive Vas Narasimhan said last month that Zolgensma, which is a one-time treatment, was cost-effective at up to a $5 million price tag, based on the assumption that a year of hospital-free healthy existence is worth $500,000.

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