Spectrum Pharma: CMS Rules in Favor of Zevalin

Spectrum Pharmaceuticals (SPPI) just announced that the Centers for Medicare and Medicade Services (CMS) ruled in favor of the company's radio-immunotherapy Zevalin®. Zevalin is now approved as a first-line treatment for patients with non-Hodgkin's lymphoma (NHL).

This is good news for SPPI as Zevalin will now be reimbursed at an average sales price (ASP) of most other cancer drugs. As I understand it, this ruling means that Zevain should now be reimbursed at a price +5% to +6% from its current price. It should be noted that the new price will be effective as of January 1, 2010.