Sepracor Issues Statement Regarding CMS Medicare Part B Reimbursement Change for XOPENEX(R) Inhalation Solution
MARLBOROUGH, Mass.--(BUSINESS WIRE)--June 18, 2007--Sepracor Inc. (Nasdaq: SEPR) today announced that the Centers for Medicare and Medicaid Services (CMS) has issued its proposed new, bundled, third quarter 2007 payment amount for XOPENEX(R) (levalbuterol HCl) Inhalation Solution and generic albuterol inhalation solution products. The new Medicare Part B reimbursement rate announced by CMS is $0.525 per 0.5 mg of levalbuterol and $0.525 per 1 mg of generic albuterol. This translates into $1.31 per unit dose for the 1.25 mg dose of XOPENEX Inhalation Solution, which is the dose of XOPENEX Inhalation Solution most commonly used by Medicare Part B beneficiaries. This reimbursement rate is expected to go into effect on July 1, 2007.
This new reimbursement price results from an action by the CMS to discontinue the unique Medicare Part B billing and payment code for XOPENEX Inhalation Solution and bundle this single-source, branded drug with many generic albuterol inhalation solution drugs. Because of the bundling of the two medications, this new, blended reimbursement rate significantly lowers the current reimbursement rate for XOPENEX Inhalation Solution and significantly raises the current reimbursement rate for generic albuterol. Sepracor believes that tens of thousands of physicians have prescribed XOPENEX Inhalation Solution for many thousands of Medicare Part B beneficiaries with respiratory disease because they believed, in their clinical judgment, that XOPENEX Inhalation Solution was the most appropriate choice. Sepracor further believes that this action by CMS marks the first time a single-source, innovative product has been bundled with generic, multi-source drugs that are not therapeutic equivalents for Medicare Part B reimbursement purposes. Sepracor hopes to work with government officials to pursue better alternatives to the proposed bundling of XOPENEX Inhalation Solution and generic albuterol inhalation solution drugs.
Sepracor cannot currently reasonably estimate the potential impact of this change in the Medicare Part B reimbursement rate on XOPENEX Inhalation Solution utilization or to XOPENEX Inhalation Solution revenues from the Medicare Part B market.
About Sepracor
|
