This document discusses the challenges and opportunities for commercializing cellular therapies like CAR-T cell therapies. It notes that while CAR-T therapies have shown spectacular results for some blood cancers, significant hurdles remain for applying them to solid tumors which represent the vast majority of cancers. Manufacturing CAR-T cells is a complex, individualized and expensive process that faces challenges in scaling. For CAR-T therapies to be commercially viable, they will need to demonstrate durable and high rates of remission for a wide range of cancers at a cost that healthcare systems are willing to pay, which may be in the range of $150,000-$300,000 per patient. New technologies that improve the efficacy, safety and scalability of cellular
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Commercialisation of Cellar Therapies for Cancer (final)
1. Commercialisation of Cellular Therapies
Anthony Walker, PhD and Robert Johnson
Abstract
Successful commercialisationof acell therapyrequiresmore thanprovingsafetyandefficacytothe
regulators. The inherentcomplexityof cellularproductsdelivers particularmanufacturing,logistical
and reimbursementhurdlesthatthreatencommercial viabilityforanytherapywithalessthan
spectacularclinical profile thattrulychangesthe standardof care. Thisisparticularly acute for
autologouscell therapieswhere patientsreceive bespoketreatmentsmanufacturedfromasample
of theirowncellsandwhere economiesof scale,whichplayanimportantrole incontainingthe
productioncostsfor small molecule andantibodytherapeutics,are highlylimited.Nevertheless,the
promise of game-changingefficacy,asexemplifiedbyveryhighlevelsof complete responsesin
refractoryhaematological malignancies,hasattractedcapital investmentsonavastscale,and the
attendantpace of technologydevelopmentprovidespromisingindicatorsforfuture clinical and
commercial success.
Keywords:cellulartherapy,CAR-T,solidtumours,immunotherapy,oncology
The CAR-T Landscape
Clinical trialshave revealedspectacularefficacyinrefractoryleukaemiapatientsusinganti-CD19
chimericantigenreceptor(CAR) adoptiveT-cell therapy,witha92% complete remissionrate in39
patientswith Acute LymphocyticLeukaemia(ALL).These are transformative resultswhichhelptip
the balance inthe waragainst cancer:if the complete responsesare durable,the technologyraises
the previouslyunthinkablepossibilitythatlate stage cancercan be cured.
These andotherdata have ignitedinvestorinterestinthe biotechsectorandthisfieldinparticular.
Start-upcompanieshave raisedunprecedentedamountsof private capital,subsequentlytapped
equallyimpressive sumsinIPOsand have gone onto achieve eye-wateringlyhighvaluationsonthe
publicmarkets.Suchisthe appetite thatimportantinvestmentcriteria, forexample robustandclear
IP have beensomewhatforgiven,althoughthishasbeenshiftingasthe sectorrapidlymatures.
Big pharmahas alsodivedintothe field;inAugust2012 Novartisenteredintoanalliance withthe
Universityof Pennsylvania(UPenn) onthe backof nascentclinical datawithU PennsCD19
construct.Novartisagreedtofunda CenterforAdvancedCellularTherapies(CACT) onthe U Penn
campusin Philadelphia,contributing$20m.At the time of the deal,thiswasan extraordinary
venture forNovartiswhichmaintainedastrongfocuson small moleculeandmonoclonal targeted
therapies;throwingitsweightbehindanautologouscelltherapywasaradical departure forits
typicallyconservative approachtodeal-making.The companyislookingtoaggressivelymaintainits
leadershipinthe fieldthroughbothin-houseresearchandcontinueddeal-making.
In March 2013 Celgene andBluebirdBioannouncedaglobal strategiccollaborationtoadvance gene
therapyinoncology,withafocus on CAR-Technology.Financialtermsof the agreementinclude an
upfrontpaymentandup to $225 millionperproductinpotential optionfeesandclinicaland
regulatorymilestones.
In June 2014 PfizerandCellectisenteredintoaglobal strategiccancerimmunotherapycollaboration
to developCAR-Ttechnologies.PfizergainedaccesstoCellectisallogeneicapproachandPfizeris
2. able to select15 targets.Cellectisreceivedanupfrontpaymentof $80m and milestonepaymentsof
up to $185m.
In January2015, AmgenandKite announcedastrategiccancer immunotherapycollaboration,
combiningAmgensoncologytargetsandKitesCAR-Tplatformtodevelopnewtherapeutics.Kite
received$80m upfrontfromAmgenandiseligibleforupto $525m in milestonesperprogram.
Celgene redoubleditscommitmenttothe fieldinJune 2015, announcinga ten-yearcollaboration
withJuno(albeitaftersignificantlynarrowingitscollaborationwithBluebird).Celgenegained
optionstocommercialize Junosprogramsoutside NorthAmericaandmade aninvestmentof $1bn.
However,the technologyfacesbigquestionstolive uptostratosphericexpectations,withatleast
twomajor issuesfacingthe field.First,canthese technologiesbe commercialisedatreasonablecost
(CAR-Ttechnologiesuse autologouscells,amajorlogistical challenge),andsecond,canthe
technologybe appliedtocancersbeyondleukaemia.A technologythatdeliversequallyimpressive
resultsina range of solid tumours wouldsurelymarkamilestoneinthe historyof medicine.
Addressing Solid Tumours
Althoughsuccessfultreatmentof advancedhaematological malignancieswouldrepresentamajor
clinical win,commercial success relies onconqueringsolidtumourswhichrepresentover90% of the
oncologysector.There isa dearthof clinical data;the mostimpressive todate include:
A 60% response rate intensynovial sarcomapatientstreatedwithNY-ESO-1SpecificT-Cells
producedbyAdaptimmune,withadurabilityof responserangingfromtwotonine months [1];
The U Penngrouptreatedpatientswithpancreaticductal adenocarcinoma(PDAC) with CAR-T
cellsrecognisingmesothelin,anantigenoverexpressedonPDACcells.Twoof six patients
experiencedstable disease byRECIST1.1 withdisease control off-therapyseeninone patientfor
> 4 months.In one patient,abnormal 18FDG avidityseeninlivermetastasesatbaselinewasno
longerdetectedat1 monthaftertherapy [2].
Whilstprovidingencouragingpreliminarysignsof efficacy,these resultsfall well shortof the possibly
un reasonable game-changing benchmarksthatmanyinvestorsandsome BigPharmahave come to
expectfromadoptive cellularimmunotherapy.
Major technical challengesremain, notleasthomingof sufficientengineeredTcellstothe tumour
site(s) toprovide anadequate efficacy:toxicity ratioforefficacy.Beyondthis,the microenvironment
of a solidtumourmayprove to be far more hostile to CAR-Tcellsthancirculatingtumours,and
inductionof anergy maybecome anefficacy-limitingfactorregardlessof CAR-Tcell persistence
whichinitself maybe an issue.Finally,the emergence of CAR-Tresistantdisease throughantigen
escape lossmechanismsalreadyseeninstudiesof cancervaccines [3] may limitthe durabilityof any
responsesto CAR-Ttherapyand,as discussedbelow,thiscouldseverelyrestrictreimbursementfor
thismodality.
Manufacturing & Logistical Hurdles
Most CAR-Tand TCR-engineeredTcells are currentlymade bya cumbersome andbespoke process
involving:
LeukapheresistoextractT cellsfroma cancer patientwhoisconnectedbytwointravenous
tubesto an apheresismachineforseveral hours.Thisisnotcomfortable forthe patient,incursa
3. substantial cost,andultimately,large-scaleadoptionof autologous CAR-Ttherapymaybecome
rate limitedbyavailabilityof apheresiscapacity;
Activationandtransductionof T cells.The original CAR-Tprocessesusedanti-CD3anti-CD28
DynabeadsforT cell activation;Novartismade anearlymove tosecure exclusive commercial
access to thisreagentforCAR-Tproductiontoreinforce itsproprietarypositioninthe field.Since
then,alternativestoDynabeadshave beensuccessfullyimplementedandthisnolonger
representsacommercial hurdle.Transductionisusuallybyretroviral orlentiviral vectors,
althoughnon-viral systemsare alsoused;
Expansionof transducedTcellsoveran approximatelytwo-weekperiodinacytokine (typically
IL-2) supplementedtissueculture medium;
Washingand concentratingthe Tcellspriorto administration.For CAR-Tproducts made at
central facilitiesandtransportedtoremote treatmentcentres,cryopreservationprotocolshave
beendeveloped;
QC release assaysare conductedforeachbatch of CAR-Tproduct.
The entire processhasto be conductedunderenvironmentallycontrolledGMP compliantconditions
whichare expensivetomaintainandrun.Aseach CAR-Tproduct ismade fromstartingmaterials(T
cells) fromthe patienttobe treated,there are nosubstantial economiesof scale:increasing
manufacturingcapacityrequiresthe additionof extraproductionpodsorboothsinparallel.The
earliestproductionprocesseswere lab-based,fullymanual andinvolvedopentissueculture
manipulationsinbiological safetycabinetsand/orisolators:althoughworkable forveryearlystage
clinical research,thisapproachisclearlynotappropriate forcommercial purposes.Anindustrial
grade manufacturingprocessneedstobe conductedinsealedsystems(zeroopenmanipulations)
and shouldbe automatedasfar as possible,primarilytoreduce the humanvariabilityfroma
complex processbutalsotoreduce costs. A fullysealedsystemcouldarguablybe situatedinaGrade
D cleanroom(EU cGMP classifications),althoughindividual regulatoryagencieswill scrutinisethisin
great detail andmayrequire Grade C conditionswhichincreasescomplexityandcost.Atpresent,
the onlycommerciallyavailablesystemthatmeetsthe criteriaof a closedsystemautomated
manufacturingdevice isthe Miltenyi CliniMACSProdigy [4]. Eventhen, noteveryprocesscanbe
implementedonthatsystem(forexample, itappearsbettersuited tolentiviral transductionthan
retroviral,andthisdependsonthe detailsof each specificprocesswhichwill notbe discussedhere).
There are twoschoolsof thoughtregarding the locationof CAR-Tmanufacturing.The BigPharma
industrial mind-setfavourslarge,centralisedfacilitiescapableof processingTcellsfrommany
thousandsof patientsperyear.The alternative isadecentralisedmodel withmanufacturingco-
locatedwiththe specialisttreatmentcentres(e.g.universityhospitals,majorcancertreatment
centres).Theoretical modelsof the scalingof anautologousproductionmodulecanshow thatthere
are optimumsize thresholdsforaproductionmodule atdifferentdose numbersperyear.
Economiesof scale are non-linear:i.e. there are scenarioswheretwosmallproductionmodulesin
parallel,eachcapable of producingsay500 dosesperyear,are more efficientthanamedium
module scalesfor1,000 dosesperyear.These considerationsclearlyplayalarge role inthe decision
betweenthe twomodels(andindeed the degreeof decentralisation;i.e.whatwouldthe optimum
numberof sitesbe inthe USA; 25, 50, 100?).
Top level pros andconsof eachmodel include are listedinTable 1.
4. Pricing, Reimbursement & Market Access
Whichevermanufacturingmodel ischosen,manufacturingcostsforautologous CAR-Tcell therapies
are likelytobe inthe range of $25-35,000 perpatient,even aftermaximumprocessefficiencieshave
beenexploited.Note thatthisisjustthe cost of manufacturingthe therapy,andinfact a course of
treatmentincurssubstantial additional costsforpatientpreparation(mostcurrentprotocolscall for
lymphodepletionpriorto CAR-Tadministration,anexpensive andtime consumingin-patient
procedure), CAR-Tadministrationandfollow upcare costs(notablythe resourcesrequiredfor
monitoringandtreatingthe severe sideeffectse.g.cytokine stormoftenassociatedwithCAR-T
therapy). Total treatmentcostsmaytherefore be ashighas those for autologous bone marrow
transplantation (currentlyca.$360,000 in the USA) plusthe price of the CAR-T therapy.
In the immediate aftermathof the Novartisdeal with UPenn,financialanalystswereestimatingthat
CAR-Ttherapieswouldbe pricedat$250,000 per patientandpossiblyhigher. AsnoCAR-Tproducts
have beenlaunchedontothe marketyet, future pricingremainsspeculative,butmany analystsare
now basingforecasts onprice ranges between$150,000 and$300,000 per patient.Eventhe lower
endof thisrange isabove current annualisedmedicationcostsfornewly-launchedcancerdrugs. At
firstglance,this appearstoflyin the face of the growingdebate aboutthe JustumPretium,orJust
Price,of cancer drugs [5], voluble clinicianresistancetoperceivedexcessive drugpricing(arguably
startedinOctober2012 whenphysiciansatthe Memorial Sloan-KetteringCancerCenterannounced
inthe NewYorkTimesthat theirhospital wouldntbe usingZaltrap,anew VEGF-targetedcancer
treatmentformetastaticcolorectal cancer) andthe increasinguse of HealthTechnologyAssessment
(HTA) to restrictthe use of highpricedtreatments. A recentstudyassessinganoriginal dataset of 58
anticancerdrugsapprovedbetween1995 and 2013 foundthatlaunchprices,adjustedforinflation
and drugssurvival benefits,increasedby10%,or about $8,500, peryear[6]. Thus,in 2004
bevacizumabwas launched forpatientswithlate stage colorectal cancerata price of $50,000 per
treatmentepisodeandwasassociatedwithanincremental increase inoverall survival of five
months.Sevenyearslaterin2011, ipilimumabwasapprovedfortreatmentof melanoma,associated
withan incremental increase inlifeexpectancyof fourmonths,andlaunchedata price of $120,000
pertreatmentepisode.Itisclearlyuntenableforthistrendtocontinue indefinitelyinanalready
budget-constrainedhealthcare environment.
The keyquestiontherefore is:willpayersbe preparedtofund CAR-Ttreatmentatthese levels?This
iskeyto understandingthe commercial prospectsforthe technologyasawhole.The answersimply
isthat it will dependonthe level of clinical efficacythatcan be achievedwiththis new modality.In
the most optimistic(but probablyunrealistic) scenario,asingle CAR-Tadministrationwouldinduce
longtermremission,sayfive totenyears.Usingthe UKs NICEbenchmarkof 贈30,000 ($47,000) per
quality-adjustedlife year,thiswould amounttoa maximumreimbursableprice of $235-470,000.
Thiswouldhave to be adjusteddownwardstoaccountforthe fact thatcancer patientsqualityof
life islessthanperfect,butthatstill mayallow aprice for CAR-Ttreatmentof $118-235,000.
Allowingforthe observationthatNICEsapproachisamongstthe moststringentinmainstream
pharmaceutical markets,andUKpricesfor pharmaceuticalstendtobe significantlylowerthaninthe
US (the mainmarket) and othercountries,itispossiblethatthe HTA-acceptedpricesforCAR-T
therapywill be above thisrange andtherefore inline withcurrentanalystprojections.However,any
shortfall inefficacybelowadurable five-yearremissionwouldnecessarilyreducethese calculated
price ranges.Thismay perhapsbe an overlysophisticatedwayof sayingthat CAR-Ttherapieswill be
paidfor onlyif theyworkinthe clinic,butthe seriousconclusionisthatthe benchmarkfor
commercially-viable efficacyisgoingtobe muchhigherthanfor lesscomplex modernoncology
5. drugssuch as monoclonal antibodies. Unless CAR-Ttherapy, initscurrentpatient-specific
autologousapproach,caninduce longtermdurable remissionsinahighproportionof treated
patients,the chancesof commercial successare low.
New Technology to Drive Commercial Success
A numberof technologies onthe horizonappearsettogreatlyimprove the clinical andcommercial
prospects foradoptive cellularimmunotherapy. Some of these approachesaimatenhancingthe
efficacyof CAR-Tcells,forexample byboostingthe homingof infusedcellstotumoursites,the lack
of whichisbelievedtobe amajor reasonwhyefficacyof CAR-Tcellsinsolidtumoursissignificantly
belowthatincirculatingtumours.There are alsoapproachesto enhancingthe endurance of CAR-T
cellsnotjustin termsof the lengthof durationinthe circulation, butalsothe retentionof anactive,
non-anergised phenotype.Additionally,some researchersare assessingmethodstobuildin
defencesagainsttumourmechanismsthat evade ordisable the immune system;suchanti-missile
missiles mayhave alot of mileage inboosting CAR-Tefficacy.
Anothersetof approachesfocuson the safetyof CAR-Ttherapies.Whilstthereissome evidence
that cytokine releasesyndromeisatleastassociated,if notcorrelated withclinical efficacy,there
may be methodstobluntthe severityof the reactionwithouttoomuchof an efficacyhit.Reducing
the needto treatthe side effectsof CAR-Ttherapyinan intensive care unitwouldclearlybe better
for patients,more practical fortreatmentcentresandmuchmore attractive to payers.
Perhapsthe mostfundamental approachtoimprove cellularimmunotherapywill be totransformit
froma bespoke,patientspecificprocesstoa mass-producedproduct. Thiswouldreduce leadtimes
for treatment(the productwouldbe available off-the-shelf), have aninherentlylowerproduction
cost (allowingforreductionsinpricingwithoutoverlysacrificingprofitmargins)andwouldbe more
inline withthe model of productdistributionbythe pharmaceutical industry. The firststeptoward
thisisthe use of allogeneicTcellsfromhealthydonors,forexample gene editedtoeliminate the
endogenousTcell receptorandthuspreventacute rejectionbythe recipient,andwhere one donor
can provide enoughcellstotreatmultiplepatients.Ultimately,we foresee thatthisapproachwill
extendtoimmortalisedTcell linesthatcanbe culturedinbulkon an industrial scale,eliminatingthe
needforT cell donorsaltogether.Animmortalised,allogeneicmassproduced CAR-Tcell capable of
inducingdurable (five yearsormore) remissionsremainsapipe dream, butatleastis onthe radar
for a numberof well-resourcedresearchgroupsandthusstandsa reasonable chance of becominga
reality.
6. Table 1: Toplevel pros andcons of manufacturingmodels
Pro Con
Centralised - Economiesof scale (albeitlimited) - Extremelycomplex logistics
increasesriskof production
failures/errors
- Higherriskof productionoutages
inthe eventof plant
contamination,etc.
Decentralised - Enablesuse of fresh,non-
cryopreservedproductwhichis
likelytobe inherentlysuperior
- Maximiseslocal clinicianbuy-into
the therapy
- Potentiallyharnessesexisting
investmentsincleanroomsat
majorcancer centres
- Needtodemonstrate
comparabilityof manufacturingat
each site:complex,time
consuming,costly
- Validatinganyprocesschange at
each site multipliesthe efforts
requiredvsa centralisedsetting
7. References
1. Merchant, S.,Cristea,M.C., Stadtmauer,E.A.,Tap,W.D., D'Angelo,S.P.,Grupp,S.A.,
Holdich,T.,Binder-Scholl,G.,Jakobsen,B.K.,Odunsi,K.,Rapoport, A.andMackall,C. (2015)
GeneticallyengineeredNY-ESO-1specificTcellsinHLA-A201+ patientswithadvanced
cancers.J ClinOncol.33, suppl abstrTPS3102
2. Beatty,G.L., O'Hara, M.H., Nelson,A.M.,McGarvey,M., Torigian,D.A.,Lacey,S.F.,
Melenhorst,J.J.,Levine,B.,Plesa,G.andJune,C.H., (2015) Safetyandantitumoractivityof
chimericantigenreceptormodifiedTcellsinpatientswithchemotherapyrefractory
metastaticpancreaticcancer. J ClinOncol.33, suppl abstr TPS3007
3. Johnson,R.S., Walker,A.I.andWard,S.J.(2009) Cancer vaccines:will we everlearn? Expert
RevAnticancerTher. 9(1), 67-74
4. MACS Miltenyi Biotec.(Accessed2015) CliniMACSProdigy速SystemMasteringthe
complexityof cell processing.
5. Hagop M., Kantarjian,H.M., Fojo,T., Mathisen,M and Zwelling,L.A.(2013) Cancer Drugs in
the UnitedStates:JustumPretium The JustPrice.AmSoc ClinOncol.31, 28, 3600-3604
6. Howard,D.H., Bach P.B.,BerndtE.R. and Conti,R.M.(2015) Pricinginthe Marketfor
AnticancerDrugs.National Bureauof EconomicResearch,WorkingPaper20867,
http://www.nber.org/papers/w20867 (accessed2015)