Steve,
Interesting article.
Here's another in Medscape about H. pylori:
Managing Patients With Peptic Ulcer Disease: Improving the Value of Care, Cost Savings Incurred by Eradicating H pylori Infection
medscape.com
". . . . .Comparing regimens. Treatment of H pylori infection is associated with reduced costs for patient care. We compared the expected cost of traditional triple therapy for PUD using the H2-receptor antagonist cimetidine with the most expensive H pylori treatment regimen consisting of a combination of omeprazole plus clarithromycin. Although the initial cost of medication favors H2-receptor antagonist therapy, the total disease management costs over a 2-year period were considerably greater because of the cost of recurrence. With every recurrence, there are expenses from interactions with the health care system and repeat procedures and treatments, which all increase costs. We concluded that at the end of the 2 years, an approach that eradicated H pylori was much less expensive than H2-receptor antagonist therapy (Fig. 1). . . . . ."
As more and more physicians and HMOs begin to realize that testing and treating H. pylori will result in substantial cost savings, the sales of Quidel's CLIA waived one-step H. pylori tests will surely increase.
From an article in the 18 February 1994 edition of the Boston Business Journal titled: Oravax bets the ranch on bacteria link to ulcers, by Cathryn J Prince:
"Each year an estimated 5 million new ulcer cases are diagnosed in the United States. Of those, 5,000 result in hospitalization and 5,000 result in death, Monath said." (Five million tests times $10 per test is $50 million.)
And from an article in 8 March 1994 Wall Street Journal titled: New Consensus on Ulcers Spurs Rush to Create Tests, by Jerry E. Bishop:
"A number of companies, however, are champing at the bit to market new H. pylori tests that are quicker and simpler. The potential U.S. market for such tests is $50 million to $70 million a year, estimates Quidel Corp., a producer of medical diagnostic tests in San Diego."
Fifty million exceeds Quidel's total product sales, and the market mentioned is for the U.S. only! I bet the market will eventually become even bigger when testing for H. pylori to prevent cancer becomes common, if not in the U.S., then other countries where H. pylori infection and stomach cancer are much more common.
Mike |
