Genentech Prices Cancer Drug at $575 a Dose

Genentech Inc. said it will charge $575 per dose for Herceptin, its newly approved drug for treating breast cancer that has metastasized. Wholesalers, which sell the drug to pharmacies or hospitals, will charge an average of about $718 per dose, the company said. The cost to the patient for the treatment, which is administered weekly, will vary depending on further markups and individuals’ insurance policies. Herceptin is made from a genetically manipulated antibody; it works by blocking the overproduction of a protein that stimulates tumor growth. The drug has been effective in 30% of all women who carry the genetic flaw responsible for the excess protein production. Jon Alsenas, an analyst with ING Baring Furman Selz, said the price is higher than expected but that it is a drug that deserves premium pricing. The South San Francisco-based company expects insurance companies and health-care plans to pay for the drug in part because it is one of the few for advanced cancer that actually lengthens the time a patient can expect to live. Women with no insurance can receive the drug free through a company program, Genentech said. Genentech shares fell $2.38 to close at $69.50 on the NYSE.