The Good, the Bad, and the Ugly in Personalized Medicine
Is the value of "personalized medicine" over-promised? Why is the quality of health care declining for many people despite the pace of innovation? Do patients and doctors have conflicting priorities? What is the best path forward?
"How do we generate evidence for value, which is what everyone is asking for?"
Some of the country's leading medical experts recently debated these questions at the prestigious annual Personalized Medicine Conference, held at Harvard Medical School in Boston, and LeapsMag was there to bring you the inside scoop.
Personalized Medicine: Is It Living Up to the Hype?
The buzzworthy phrase "personalized medicine" has been touted for years as the way of the future—customizing care to patients based on their predicted responses to treatments given their individual genetic profiles or other analyses. Since the initial sequencing of the human genome around fifteen years ago, the field of genomics has exploded as the costs have dramatically come down – from $2.7 billion to $1000 or less today. Given cheap access to such crucial information, the medical field has been eager to embrace an ultramodern world in which preventing illnesses is status quo, and treatments can be tailored for maximum effectiveness. But whether that world has finally arrived remains debatable.
"I've been portrayed as an advocate for genomics, because I'm excited about it," said Robert C. Green, Director of the Genomes2People Research Program at Harvard Medical School, the Broad Institute, and Brigham and Women's Hospital. He qualified his advocacy by saying that he tries to remain 'equipoised' or balanced in his opinions about the future of personalized medicine, and expressed skepticism about some aspects of its rapid commercialization.
"I have strong feelings about some of the [precision medicine] products that are rushing out to market in both the physician-mediated space and the consumer space," Green said, and challenged the value and sustainability of these products, such as their clinical utility and ability to help produce favorable health outcomes. He asked what most patients and providers want to know, which is, "What are the medical, behavioral, and economic outcomes? How do we generate evidence for value, which is what everyone is asking for?" He later questioned whether the use of 'sexy' and expensive diagnostic technologies is necessarily better than doing things the old-fashioned way. For instance, it is much easier and cheaper to ask a patient directly about their family history of disease, instead of spending thousands of dollars to obtain the same information with pricey diagnostic tests.
"Our mantra is to try to do data-driven health...to catch disease when it occurs early."
Michael Snyder, Professor & Chair of the Department of Genetics and Director of the Center for Genomics and Personalized Medicine at Stanford University, called himself more of an 'enthusiast' about precision medicine products like wearable devices that can digitally track vital signs, including heart rate and blood oxygen levels. "I'm certainly not equipoised," he said, adding, "Our mantra is to try to do data-driven health. We are using this to try to understand health and catch disease when it occurs early."
Snyder then shared his personal account about how his own wearable device alerted him to seek treatment while he was traveling in Norway. "My blood oxygen was low and my heart rate was high, so that told me something was up," he shared. After seeing a doctor, he discovered he was suffering from Lyme disease. He then shared other similar success stories about some of the patients in his department. Using wearable health sensors, he said, could significantly reduce health care costs: "$245 billion is spent every year on diabetes, and if we reduce that by ten percent we just saved $24 billion."
From left, Robert Green, Michael Snyder, Sandro Galea, and Thomas Miller.
(Courtesy Rachele Hendricks-Sturrup)
A Core Reality: Unresolved Societal Issues
Sandro Galea, Dean and Professor at Boston University's School of Public Health, coined himself as a 'skeptic' but also an 'enormous fan' of new technologies. He said, "I want to make sure that you all [the audience] have the best possible treatment for me when I get sick," but added, "In our rush and enthusiasm to embrace personalized and precision medicine approaches, we have done that at the peril of forgetting a lot of core realities."
"There's no one to pay for health care but all of us."
Galea stressed the need to first address certain difficult societal issues because failing to do so will deter precision medicine cures in the future. "Unless we pay attention to domestic violence, housing, racism, poor access to care, and poverty… we are all going to lose," he said. Then he quoted recent statistics about the country's growing gap in both health and wealth, which could potentially erode patient and provider interest in personalized medicine.
Thomas Miller, the founder and partner of a venture capital firm dedicated to advancing precision medicine, agreed with Galea and said that "there's no one to pay for health care but all of us." He recalled witnessing 'abuse' of diagnostic technologies that he had previously invested in. "They were often used as mechanisms to provide unnecessary care rather than appropriate care," he said. "The trend over my 30-year professional career has been that of sensitivity over specificity."
In other words: doctors rely too heavily on diagnostic tools that are sensitive enough to detect signs of a disease, but not accurate enough to confirm the presence of a specific disease. "You will always find that you're sick from something," Miller said. He lamented the counter-productivity and waste brought on by such 'abuse' and added, "That's money that could be used to address some of the problems that you [Galea] just talked about."
Do Patients and Providers Have Conflicting Priorities?
Distrust in the modern health care system is not new in the United States. That fact that medical errors were the third leading cause of death in 2016 may have fueled this mistrust even more. And the level of mistrust appears correlated with race; a recent survey of 118 adults between 18 to 75 years old showed that black respondents were less likely to trust their doctors than the non-Hispanic white respondents. The black respondents were also more concerned about personal privacy and potentially harmful hospital experimentation.
"The vast majority of physicians in this country are incentivized to keep you sick."
As if this context weren't troubling enough, some of the panelists suggested that health care providers and patients have misaligned goals, which may be financially driven.
For instance, Galea stated that health care is currently 'curative' even though that money is better spent on prevention versus cures. "The vast majority of physicians in this country are incentivized to keep you sick," he declared. "They are paid by sick patient visits. Hospital CEOs are paid by the number of sick people they have in their beds." He highlighted this issue as a national priority and mentioned some case studies showing that the behaviors of hospital CEOs quickly change when payment is based on the number of patients in beds versus the number of patients being kept out of the beds. Green lauded Galea's comment as "good sense."
Green also cautioned the audience about potential financial conflicts of interest held by proponents of precision medicine technologies. "Many of the people who are promoting genomics and personalized medicine are people who have financial interests in that arena," he warned. He emphasized that those who are perhaps curbing the over-enthusiasm do not have financial interests at stake.
What is the Best Path Forward for Personalized Medicine?
As useful as personalized medicine may be for selecting the best course of treatment, there is also the flip side: It can allow doctors to predict who will not respond well—and this painful reality must be acknowledged.
Miller argued, "We have a duty to call out therapies that won't work, that will not heal, that need to be avoided, and that will ultimately lead to you saying to a patient, 'There is nothing for you that will work.'"
Although that may sound harsh, it captures the essence of this emerging paradigm, which is to maximize health by using tailored methods that are based on comparative effectiveness, evidence of outcomes, and patient preferences. After all, as Miller pointed out, it wouldn't do much good to prescribe someone a regimen with little reason to think it might help.
For the hype around personalized medicine to be fully realized, Green concluded, "We have to prove to people that [the value of it] is true."
Breakthrough therapies are breaking patients' banks. Key changes could improve access, experts say.
CSL Behring’s new gene therapy for hemophilia, Hemgenix, costs $3.5 million for one treatment, but helps the body create substances that allow blood to clot. It appears to be a cure, eliminating the need for other treatments for many years at least.
Likewise, Novartis’s Kymriah mobilizes the body’s immune system to fight B-cell lymphoma, but at a cost $475,000. For patients who respond, it seems to offer years of life without the cancer progressing.
These single-treatment therapies are at the forefront of a new, bold era of medicine. Unfortunately, they also come with new, bold prices that leave insurers and patients wondering whether they can afford treatment and, if they can, whether the high costs are worthwhile.
“Most pharmaceutical leaders are there to improve and save people’s lives,” says Jeremy Levin, chairman and CEO of Ovid Therapeutics, and immediate past chairman of the Biotechnology Innovation Organization. If the therapeutics they develop are too expensive for payers to authorize, patients aren’t helped.
“The right to receive care and the right of pharmaceuticals developers to profit should never be at odds,” Levin stresses. And yet, sometimes they are.
Leigh Turner, executive director of the bioethics program, University of California, Irvine, notes this same tension between drug developers that are “seeking to maximize profits by charging as much as the market will bear for cell and gene therapy products and other medical interventions, and payers trying to control costs while also attempting to provide access to medical products with promising safety and efficacy profiles.”
Why Payers Balk
Health insurers can become skittish around extremely high prices, yet these therapies often accompany significant overall savings. For perspective, the estimated annual treatment cost for hemophilia exceeds $300,000. With Hemgenix, payers would break even after about 12 years.
But, in 12 years, will the patient still have that insurer? Therein lies the rub. U.S. payers, are used to a “pay-as-you-go” model, in which the lifetime costs of therapies typically are shared by multiple payers over many years, as patients change jobs. Single treatment therapeutics eliminate that cost-sharing ability.
"As long as formularies are based on profits to middlemen…Americans’ healthcare costs will continue to skyrocket,” says Patricia Goldsmith, the CEO of CancerCare.
“There is a phenomenally complex, bureaucratic reimbursement system that has grown, layer upon layer, during several decades,” Levin says. As medicine has innovated, payment systems haven’t kept up.
Therefore, biopharma companies begin working with insurance companies and their pharmacy benefit managers (PBMs), which act on an insurer’s behalf to decide which drugs to cover and by how much, early in the drug approval process. Their goal is to make sophisticated new drugs available while still earning a return on their investment.
New Payment Models
Pay-for-performance is one increasingly popular strategy, Turner says. “These models typically link payments to evidence generation and clinically significant outcomes.”
A biotech company called bluebird bio, for example, offers value-based pricing for Zynteglo, a $2.8 million possible cure for the rare blood disorder known as beta thalassaemia. It generally eliminates patients’ need for blood transfusions. The company is so sure it works that it will refund 80 percent of the cost of the therapy if patients need blood transfusions related to that condition within five years of being treated with Zynteglo.
In his February 2023 State of the Union speech, President Biden proposed three pilot programs to reduce drug costs. One of them, the Cell and Gene Therapy Access Model calls on the federal Centers for Medicare & Medicaid Services to establish outcomes-based agreements with manufacturers for certain cell and gene therapies.
A mortgage-style payment system is another, albeit rare, approach. Amortized payments spread the cost of treatments over decades, and let people change employers without losing their healthcare benefits.
Only about 14 percent of all drugs that enter clinical trials are approved by the FDA. Pharma companies, therefore, have an exigent need to earn a profit.
The new payment models that are being discussed aren’t solutions to high prices, says Bill Kramer, senior advisor for health policy at Purchaser Business Group on Health (PBGH), a nonprofit that seeks to lower health care costs. He points out that innovative pricing models, although well-intended, may distract from the real problem of high prices. They are attempts to “soften the blow. The best thing would be to charge a reasonable price to begin with,” he says.
Instead, he proposes making better use of research on cost and clinical effectiveness. The Institute for Clinical and Economic Review (ICER) conducts such research in the U.S., determining whether the benefits of specific drugs justify their proposed prices. ICER is an independent non-profit research institute. Its reports typically assess the degrees of improvement new therapies offer and suggest prices that would reflect that. “Publicizing that data is very important,” Kramer says. “Their results aren’t used to the extent they could and should be.” Pharmaceutical companies tend to price their therapies higher than ICER’s recommendations.
Drug Development Costs Soar
Drug developers have long pointed to the onerous costs of drug development as a reason for high prices.
A 2020 study found the average cost to bring a drug to market exceeded $1.1 billion, while other studies have estimated overall costs as high as $2.6 billion. The development timeframe is about 10 years. That’s because modern therapeutics target precise mechanisms to create better outcomes, but also have high failure rates. Only about 14 percent of all drugs that enter clinical trials are approved by the FDA. Pharma companies, therefore, have an exigent need to earn a profit.
Skewed Incentives Increase Costs
Pricing isn’t solely at the discretion of pharma companies, though. “What patients end up paying has much more to do with their PBMs than the actual price of the drug,” Patricia Goldsmith, CEO, CancerCare, says. Transparency is vital.
PBMs control patients’ access to therapies at three levels, through price negotiations, pricing tiers and pharmacy management.
When negotiating with drug manufacturers, Goldsmith says, “PBMs exchange a preferred spot on a formulary (the insurer’s or healthcare provider’s list of acceptable drugs) for cash-base rebates.” Unfortunately, 25 percent of the time, those rebates are not passed to insurers, according to the PBGH report.
Then, PBMs use pricing tiers to steer patients and physicians to certain drugs. For example, Kramer says, “Sometimes PBMs put a high-cost brand name drug in a preferred tier and a lower-cost competitor in a less preferred, higher-cost tier.” As the PBGH report elaborates, “(PBMs) are incentivized to include the highest-priced drugs…since both manufacturing rebates, as well as the administrative fees they charge…are calculated as a percentage of the drug’s price.
Finally, by steering patients to certain pharmacies, PBMs coordinate patients’ access to treatments, control patients’ out-of-pocket costs and receive management fees from the pharmacies.
Therefore, Goldsmith says, “As long as formularies are based on profits to middlemen…Americans’ healthcare costs will continue to skyrocket.”
Transparency into drug pricing will help curb costs, as will new payment strategies. What will make the most impact, however, may well be the development of a new reimbursement system designed to handle dramatic, breakthrough drugs. As Kramer says, “We need a better system to identify drugs that offer dramatic improvements in clinical care.”
Each afternoon, kids walk through my neighborhood, on their way back home from school, and almost all of them are walking alone, staring down at their phones. It's a troubling site. This daily parade of the zombie children just can’t bode well for the future.
That’s one reason I felt like Gaia Bernstein’s new book was talking directly to me. A law professor at Seton Hall, Gaia makes a strong argument that people are so addicted to tech at this point, we need some big, system level changes to social media platforms and other addictive technologies, instead of just blaming the individual and expecting them to fix these issues.
Gaia’s book is called Unwired: Gaining Control Over Addictive Technologies. It’s fascinating and I had a chance to talk with her about it for today’s podcast. At its heart, our conversation is really about how and whether we can maintain control over our thoughts and actions, even when some powerful forces are pushing in the other direction.
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We discuss the idea that, in certain situations, maybe it's not reasonable to expect that we’ll be able to enjoy personal freedom and autonomy. We also talk about how to be a good parent when it sometimes seems like our kids prefer to be raised by their iPads; so-called educational video games that actually don’t have anything to do with education; the root causes of tech addictions for people of all ages; and what kinds of changes we should be supporting.
Gaia is Seton’s Hall’s Technology, Privacy and Policy Professor of Law, as well as Co-Director of the Institute for Privacy Protection, and Co-Director of the Gibbons Institute of Law Science and Technology. She’s the founding director of the Institute for Privacy Protection. She created and spearheaded the Institute’s nationally recognized Outreach Program, which educated parents and students about technology overuse and privacy.
Professor Bernstein's scholarship has been published in leading law reviews including the law reviews of Vanderbilt, Boston College, Boston University, and U.C. Davis. Her work has been selected to the Stanford-Yale Junior Faculty Forum and received extensive media coverage. Gaia joined Seton Hall's faculty in 2004. Before that, she was a fellow at the Engelberg Center of Innovation Law & Policy and at the Information Law Institute of the New York University School of Law. She holds a J.S.D. from the New York University School of Law, an LL.M. from Harvard Law School, and a J.D. from Boston University.
Gaia’s work on this topic is groundbreaking I hope you’ll listen to the conversation and then consider pre-ordering her new book. It comes out on March 28.