Pharmaceutical innovation and cancer survival

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1 Pharmaceutical innovation and cancer survival Frank R. Lichtenberg Columbia University and National Bureau of Economic Research

2 Preview Cancer survival rates have increased substantially in the last 50 years Many new cancer drugs have been introduced during that time I hypothesized that the development and use of new cancer drugs has made an important contribution to the increase in cancer survival I tested this hypothesis by analyzing the relationship between drug vintage (FDA approval year) and cancer survival in 3 different ways, using 3 different kinds of data: Data on cancer cases by primary cancer site and year, for a given country (the U.S.) Data on cancer cases by primary cancer site and country, for a given year (2002) Data on cancer cases by country and year, for all cancer sites combined All three analyses provided support for the hypothesis that, in general, use of new cancer drugs has increased cancer survival rates 2

3 5-year relative survival rate, all cancer sites 70% 65% 60% white all races 55% 50% 45% 40% 35% 30% Sources: 3

4 Number of cancer drugs first launched : 4 drugs launched per decade : 24 drugs launched per decade

5 New goods and economic growth Economists believe that the development of new products is the main reason why people are better off today than they were several generations ago. In their 1993 book, Innovation and Growth in the Global Economy, Grossman and Helpman argued that innovative goods are better than older products simply because they provide more product services in relation to their cost of production. In their 1996 book, The Economics of New Goods, Bresnahan and Gordon stated simply that new goods are at the heart of economic progress. In a recent paper, Measuring the Growth from Better and Better Goods, Bils (2004) makes the case that much of economic growth occurs through growth in quality as new models of consumer goods replace older, sometimes inferior, models. In several papers, I have presented evidence that the introduction and use of new drugs has improved people s health and increased longevity. 5

6 Analysis A The first analysis used data on cancer drug vintage, survival, and other variables, by primary cancer site and year, for U.S. cancer patients during the period

7 5-year relative survival rate 25% 20% 15% 20.3% % 13.5% 15.5% 10% 5% 0% Acute Myeloid Leukemia Lung and Bronchus Source: Surveillance, Epidemiology, and End Results (SEER) Program ( SEER*Stat Database: Incidence - SEER 17 Regs Public-Use, Nov 2005 Sub ( varying), National Cancer Institute, DCCPS, Surveillance Research Program, Cancer Statistics Branch, released April 2006, based on the November 2005 submission. 7

8 5-year relative survival rate 64% 62% 60% 58% 56% 54% 52% 50% 48% 46% 52.3% 61.7% Non-Hodgkin Lymphoma % 59.9% Oral Cavity and Pharynx Source: Surveillance, Epidemiology, and End Results (SEER) Program ( SEER*Stat Database: Incidence - SEER 17 Regs Public-Use, Nov 2005 Sub ( varying), National Cancer Institute, DCCPS, Surveillance Research Program, Cancer Statistics Branch, released April 2006, based on the November 2005 submission. 8

9 Top 10 Chemotherapy procedures in MEDSTAT database in 2003 Chemotherapy procedure J9190-Fluorouracil Injection J9265-Paclitaxel Injection J9000-Doxorubic HCl 10 Mg Vl Chemo J9045-Carboplatin Injection J9170-Docetaxel J9355-Trastuzumab J9201-Gemcitabine HCl J9206-Irinotecan Injection J9310-Rituximab Cancer Treatment J9390-Vinorelbine Tartrate/10 Mg number of treatme nts 25,578 11,587 10,445 10,082 9,982 9,175 8,118 6,071 5,275 4,998 total expenditure $444,502 $13,500,000 $3,940,000 $11,700,000 $16,400,000 $11,000,000 $7,840,000 $9,720,000 $18,200,000 $2,260,000 9

10 Post-1990 drug treatments as % of total drug treatments 35% 32% 33% 32% 33% 30% 29% 25% 25% 20% 18% 17% 18% 20% 15% 12% 10% 9% 5% 0%

11 Post-1990 drug treatments as % of total drug treatments in 2003, selected cancer sites Melanoma of the Skin Rectum and Rectosigmoid Junction Colon excluding Rectum Hodgkin Lymphoma Testis Urinary Bladder Prostate Esophagus Non-Hodgkin Lymphoma Breast Lung and Bronchus Ovary Pancreas Miscellaneous Malignant Cancer Myeloma Chronic Lymphocytic Leukemia 16% 20% 20% 21% 21% 24% 26% 30% 33% 37% 40% 41% 41% 42% 44% 48% 0% 10% 20% 30% 40% 50% 60% 11

12 Other factors controlled for expected survival rate : the observed survival rate of a comparable (in terms of race, sex, and age) set of people who do not have cancer cancer stage distribution (localized, regional, distant) the mean age of people diagnosed with cancer the number of people diagnosed with cancer other medical innovation diagnostic radiology procedure innovation radiation oncology procedure innovation surgical procedure innovation 12

13 Analysis A results The cancer sites whose drug vintage (measured by the share of post-1990 treatments) increased the most during the 1990s tended to have larger increases in observed survival rates, controlling for other factors. Estimates of the fraction of the change in the observed survival rate that is attributable to the increased utilization of post drugs ranged from 12% to 121%; the mean of these estimates was 44%. 13

14 Analysis B The second analysis used data by primary cancer site and country, for 5 large European countries. 14

15 5-year survival rate, all sites but non-melanoma skin 80% 70% 60% 50% 40% 30% 20% 10% 0% 71% 53% 64% 63% 63% 50% 53% 48% females males 53% 43% France Spain Germany Italy United Kingdom Source: CANCERMondial Statistical Information System 15

16 26 drugs for treatment of breast cancer Anastrozole (3272) Capecitabine (3397) Cyclophosphamide (0930) Docetaxel (3205) Doxorubicin Hydrochloride (1112) Epirubicin Hydrochloride (3443) Estradiol (1188) Ethinyl Estradiol (1216) Exemestane (3455) Fluorouracil (1319) Fulvestrant (3553) Goserelin Acetate (1382) Letrozole (3330) Megestrol Acetate (1716) Methotrexate Sodium (1770) Methyltestosterone (1795) Nandrolone Phenpropionate (1859) Paclitaxel (3073) Tamoxifen Citrate (2306) Testolactone (2317) Testosterone Enanthate (2320) Testosterone Propionate (2321) Thiotepa (2342) Toremifene Citrate (3273) Trastuzumab (3419) Vinblastine Sulfate (2427) Source: Mosby s Drug Consult 16

17 % of sample patients treated with drugs launched after 1985, by country 60% 50% 40% 30% 20% 10% 51% 51% 52% 52% 40% 0% France Spain Germany Italy United Kingdom 17

18 5-year survival rate differentials from the U.K Controlling for cancer site Controlling for POST1985 and cancer site FRANCE GERMANY ITALY SPAIN POST1985 differential accounts for 14-19% of (probit of) survival rate differential. 18

19 Analysis B results Drug vintage (the share of post-1985 treatments) had a positive and statistically significant effect on both 1-year and 5-year survival rates. The difference in the fraction of post-1985 cancer drugs accounted for 14-19% of the 5- year survival rate differential, adjusted for international differences in distribution of cancer sites. Since the data on survival and on drug utilization pertain to different time periods, this estimate is probably conservative. 19

20 Analysis C The third analysis was based on data by country and year, for all cancer sites combined, for 20 countries during the period

21 Mean age of cancer drugs, by country, in Austria Sw itzerland Spain Italy France Czech Republic Greece Norw ay Sweden Australia Canada Finland Ireland Hungary Netherlands United Kingdom Germany Japan Poland Portugal Note: Expenditure-weighted mean. 21

22 Contribution of the increase in cancer drug vintage to the decline in the age-adjusted cancer mortality rate actual if no increase in drug vintage Increase in drug vintage accounts for 30% of the decline in the age-adjusted cancer mortality rate. 22

23 Analysis C results Countries with larger increases in the mean launch year of cancer drugs had larger declines in the age-adjusted cancer mortality rate. A 10-year increase in drug vintage was estimated to reduce the cancer mortality rate by 5.9%, controlling for per capita GDP growth. The increase in cancer drug vintage in other words, the use of newer cancer drugs accounts for about 30% of the GDP-growthadjusted decline in the age-adjusted cancer mortality rate. 23

24 Summary Cancer survival rates have increased substantially in the last 50 years I hypothesized that the development and use of new cancer drugs has made an important contribution to the increase in cancer survival I tested this hypothesis by analyzing the relationship between drug vintage (FDA approval year) and cancer survival in 3 different ways, using 3 different kinds of data: Data on cancer cases by primary cancer site and year, for a given country (the U.S.) Data on cancer cases by primary cancer site and country, for a given year (2002) Data on cancer cases by country and year, for all cancer sites combined All three analyses provided support for the hypothesis that, in general, use of new cancer drugs has increased cancer survival rates Due to the long-term rise in cancer incidence, cancer drug innovation is likely to play an increasingly important role in public health 24

25 Age-adjusted cancer incidence rate (cases per 100,000 population)

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