Bayer’s pricing for Vitrakvi ‘breaking paradigm,’ but justified, says Stifel

After the FDA granted accelerated approval to Loxo (LOXO) and Bayer’s (BAYRY) Vitrakvi, Stifel analyst Stephen Willey said Bayer’s reported price of $393,600/year is likely to generate some debate as it “appears to be breaking the small molecule oncology drug pricing paradigm.” However, Willey believes the pricing decision is justified since Vitrakvi “has also shattered the efficacy paradigm for targeted oncology therapy.” The $32,800/month price tag, according to media reports, is more than twice his launch pricing estimate, noted Willey, who said he must revisit his modeling assumptions. He has a Buy rating and $230 price target on Loxo Oncology shares.

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