The U.S. Medicare program has revealed that it is examining information on the prostate cancer therapy by Dendreon Corp. They are going to take a decision on whether to cover the product for elder people throughout the world.
The shares of Dendreon Corp. plummeted by 23% and became $25 after the news came and closed in on $32.33 on Nasdaq.
The Centers for Medicare & Medicaid Services (CMS) disclosed that it had got many inquiries after the therapy was approved in April. Consequently, they have opened a national coverage analysis.
The Medicare coverage could be helpful in making the product successful throughout the country. However, if the product is not given an approval, then the sales will decline significantly.
The agency has made a revelation that it will make sure if the therapy is essential and logical for the patients in Medicare. It is the health care program of the federal Government that covers 45 million elderly and disabled people in America.
The full treatment comprises three infusions and amounts to a total of $93,000. The medicine is marketed under the name Provenge, while its generic name is sipuleucel-T.
CMS reveled that it was ordering an external evaluation of the product and the issue would be brought forth an outside advisory committee this year.