Ivacaftor Case Study Pricing

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Ivacaftor, C24H28N203, is a 4-oxoquinoline-3-carboxamide molecule which consists of five main functional groups: a quinolone, an amide, a phenol, and two tert-butyls. Quinolones are regularly found in anti-biotics, amides are seen in the synthesis of nylon, phenol can be retrieved from coal tar, and tert-butyl groups are big hydrophobic groups found in tert-butyl alcohol (the simplest tertiary alcohol); none of these functional groups were invented or developed first by the parent company of the drug, Vertex. Together though these groups form an extremely expensive medicine for an extremely dangerous disease. Treatment with Ivacaftor had significant and sustained in their lung function in cystic fibrosis [3.2]. The sky high price of brand name …show more content…
The first patent dating back to 2007 and the latest can be found to be dated during this year, 2015. There are concerns of companies misusing their patents to extend their monopoly on the market, hence having the ability to overcharge for their product. [3.4] The two starting molecules, Aniline and 2,4-Di-tert-butylphenol, do not cost much relative to the cost. Aniline costs 444 Euro for 18 litres (roughly 18 kg which is approximately 200 moles) and 2,4-Di-tert-butylphenol costs 22.30 Euro for 500g.[3.5][3.6] Although the molecule is relatively small and the synthesis being short one reagent, HATU, is very expensive and potentially the dearest part of the above synthesis, costing 1465 Euro per 100g [3.7]. Depending on the percentage yield of the product after HATU is added it could be a major cost in the manufacture. It is very probable that Vertex buy these molecules in bulk hence reducing the cost of the manufacture. Ivacaftor is an example of a small molecule cure, a new breed of cure which is being highly invested in.

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