Novartis Therapy Seen as Cost-Effective Up to $1.5 Million (1)

Novartis AG’s new gene therapy targeting a disease that kills infants would be cost-effective at as much as $1.5 million, according to a U.S. nonprofit that assesses the value of drugs, well short of the potential price range the company has suggested.

Zolgensma, a one-time treatment for a severe genetic disorder called spinal muscular atrophy, would provide substantial benefits for patients, according to the analysis from the Boston-based Institute for Clinical and Economic Review. Novartis has said its therapy could be worth $4 million to $5 million.

Switzerland-based Novartis is now wrestling with the question of how to price a ...