Pfizer said it would not renew its risk-sharing agreement (RSA) for Xalkori (Ingredient: Crizotinib), a non-small cell lung cancer (NSCLC) treatment, as the state regulator gave a negative opinion on renewing the drug's RSA.
RSA refers to an agreement between a pharmaceutical company and the National Health Insurance Service (NHIS) to share the responsibility for uncertainties regarding a drug’s efficacy. The policy covers expensive anti-cancer medicines or treatment for diseases that do not have alternative therapies not covered by health insurance policies so that patients can receive the treatment they need with reduced financial burdens.
According to reports, HIRA has decided to terminate Xalkori's RSA contract in December.
“RSA is a system that re-evaluates drugs registered to the system every four years,” a Pfizer spokeswoman said. “Unlike when the drug first received insurance benefits, however, there are other substitute drugs covered by insurance now. Therefore we decided not to renew the contract as Xalkori no longer fits RSA requirements.”
As to whether the termination of the RSA will affect the price of the drug, the official stated that as of now it is uncertain as the company will have to negotiate a new drug price with the NHIS after the RSA for Xalkori ends on April 30.
“However, Pfizer is focused on ensuring patient accessibility consistently and will focus on providing such accessibility.” she added.