The Food and Drug Administration on Friday approved Novartis’ $2.1 million gene therapy for spinal muscular atrophy — making it the world’s most expensive drug.
The therapy, Zolgensma, is a one-time treatment for spinal muscular atrophy, a muscle-wasting disease and leading genetic cause of infant mortality that affects one in every 11,000 births. Novartis had previously said it could price the treatment between $1.5 million to $5 million.
Novartis said the treatment will cost $2.1 million — or $425,000 a year spread out over five years. The company said it’s “working closely with insurers to create 5-year agreements based on success of the treatment as well as other novel pay-over-time options.” It’s currently in “advanced discussions” with more than 15 insurers on payment options. Shares of Novartis were up nearly 4% late-afternoon Friday.