At $475,000, new cancer drug raises thorny questions about drug pricing — and value

A first-of-its-kind cancer treatment is generating unbridled excitement — but also underscoring intense concerns over pricing and value.

The drug, which is known as a CAR-T therapy, is expected to dramatically raise the chance of survival for children who have an aggressive form of leukemia and fail to respond to other treatments.

The $475,000 price tag is much less than Wall Street expected and might disappoint some investors who hoped for a premium on such a complex drug. But it’s still causing anxiety among patients. Mindful of the hit its reputation could take, Novartis is offering, in effect, a money-back guarantee: If a patient fails to respond in the first month, there will be no charge.

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