Oxervate’s considerable cost is a complex issue stemming from several key factors within the pharmaceutical industry. These factors range from the intensive research and development processes required for its creation, to the limited patient population it serves, and the regulatory hurdles it had to overcome.
The development of a novel biologic therapy such as Oxervate demands significant investment. Clinical trials to prove its safety and efficacy are costly and time-consuming. Furthermore, Oxervate addresses a relatively rare condition, neurotrophic keratitis. This limited market size impacts the recouping of research and development expenses and ultimately influences the pricing strategy. The drug’s orphan designation, designed to incentivize development for rare diseases, also grants market exclusivity, allowing the manufacturer greater pricing control.
