Question-and-Answer Session
Operator
Yes, sir. We will take the first question from Chris Raymond with Robert Baird. Please go ahead, sir.
Chris Raymond – Robert Baird
Hello. Thanks. Thanks for taking my question. Just sort of a commercial question. I know you guys are seeing some non-solicited frontline use in multiple myeloma with VELCADE. It looks like your primary competitor, Revlimid, as well. Can you maybe comment? Are you seeing any sort of influence or any decision or action on the part of payers with regard to either expressing any preference for one or two of these agents?
Kyle Kuvalanka
Chris, thank you very much for your question. Christophe is going to take that.
Christophe Bianchi
Thank you, Chris. Effectively, we think we have a great drug for frontline multiple myeloma. We don’t have the approval yet, so one action to take on (inaudible) is that we are not officially reimbursed by Medicare for the utilization of VELCADE in frontline multiple myeloma, although many states cover VELCADE for frontline multiple myeloma. That’s one thing that we see in the marketplace for frontline multiple myeloma.
We are seeing on an anecdotal basis, and I won’t get into too many details here, some payers expressing preferences for VELCADE, at least giving some incentive, product payers giving some incentive to the customers for the (inaudible) of VELCADE because they see VELCADE as a great agent, which is really cost effective, which is also providing great survival in the relapse setting, but also the hope of survival eventually in the frontline setting as well.
Chris Raymond – Robert Baird
You mentioned that they’re expressing preference or I think I heard you said providing incentives. Can you maybe describe a little bit more in detail what those incentives are?
Christophe Bianchi
The product payers can make decisions independently from CMS, obviously, and some of them have given preferred reimbursement rates for VELCADE and have given preferred formulary status for VELCADE in the sense of they could reimburse just what CMS reimburses or they could reimburse a bit more. In many instances we’ve had some payers reimbursing a bit more for VELCADE.
Chris Raymond – Robert Baird
It’s kind of a very qualitative question, but what kind of impact do you think that might be having and do you think that might expand at all or stay the same?
Christophe Bianchi
Well, as I indicated in my remarks, as we get indications for VELCADE, one, we get an approval, which is going to give us the ability to promote the use of VELCADE in frontline, which is the biggest driver that you can see for the sales. We get reimbursement on a national basis for VELCADE by CMS. Effectively getting this reimbursement on a national basis by CMS is really the key growth driver for the brand, which, depending on the results from VISTA interim analysis, it could happen as early as sometime next year, mid-next year.
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