Novartis Gene Therapy Hit Some Coverage Barriers, Bernstein Says

Novartis AG’s potentially curative gene therapy for a deadly childhood disorder has run “into early coverage barriers” with U.S. health care providers, according to Bernstein.

The first-of-its-kind therapy that won U.S. approval in May for children who have a severe illness called spinal muscular atrophy has been met with “surprisingly restricted” coverage from some of the top U.S. insurers, Bernstein analysts led by Ronny Gal wrote in a note to clients. Eleven of the top 30 programs have published their coverage choices with most applying restrictive rules, he said.

The surprising obstacles that payers appear to be placing may dent ...