What is the difference between Cell Therapy and Gene Therapy?
Cell therapy is the transfer of live cells into a patient to repair or replace damaged cells. These cells may also originate from either the patient themselves or a donor. Gene therapy on the other hand, involves modifying or replacing faulty genes with genetic material. This genetic material changes how a single protein or group of proteins is produced by the cell. Both therapies can be done either inside the body (in vivo) or outside of the body (ex vivo).
Understanding the CGT Market
The cell and gene therapy market has been a heavy game changer in the market for the last 5-7 years. It was in August 2017 where the first cell therapy drug named Kymriah was approved by the FDA to treat a form of acute lymphoblastic leukemia. Since this historic time, 38 different cell and gene therapies (CGT) have been approved by the FDA and research shows that between 50-75 CGTs are expected to reach regulatory approval by 2030! It seems that at this current stage of confirmed approvals, the final number of approved drugs in 2030 will be closer to 75 than 50 (and potentially higher too).
As seen above, this market has experienced substantial growth, both currently and projected into the future. In 2023, the global CGT market was valued at $8.75 billion and by 2030, it is projected to grow to 42.56 billion by 2030, growing at a compound annual growth rate (CAGR) of 39.42% during the forecast period of 2022-2030. Hence, significant growth is still on the horizon, making it crucial for employers to understand the intricacies of this market, especially given the high costs associated with it.
Navigating the Market’s High Costs
Although CGTs are life-changing for patients, they come with very hefty price tags. The average cost of a cell therapy treatment is around $1 million, while gene therapy drug treatments range from $1-2 million. With these therapies costing millions of dollars, this can have a huge effect on employers’ health costs due to significant financial risk. Hence, employers must plan for these potential costs to avoid financial strain on their health plans. Below are some actionable steps that can be taken:
- Consider Stop Loss Insurance: This type of insurance is incredibly useful for protecting against catastrophic claims since it covers costs that exceed a certain amount.
- Identify Centers of Excellence: Direct patients to specialized centers of excellence that have specific expertise in administering CGTs. By working this way, patients have a higher chance of improved outcomes which further reduces costs.
- Consult with experts: Seek insights from healthcare and insurance professionals specialized in CGT to analyze the intricacies of this market.
- Develop a comprehensive plan: Explore various alternative funding solutions to alleviate high costs for employers while still providing valuable care for employees.
At ClearPoint Health, we are committed to providing you with the guidance needed to navigate the complexities of the CGT market and make well-informed decisions for your customized plan. To learn more about how ClearPoint Health is managing CGTs in the most efficient way possible, Contact Us today. Our team is ready to provide the best in-class information that is tailored to your specific needs.
By: Caleb Unni, Director of Marketing Strategy