Data Showing Potential Economic Benefits Of Treating ABSSSI In Outpatient Settings Presented At ICAAC 2012

Durata Therapeutics (NASDAQ:DRTX) today announced cost-analysis data from a study investigating outpatient-based therapy for acute bacterial skin and soft tissue infections (abSSTI, a term synonymous with the more commonly used acute bacterial skin and skin structure infections, or ABSSSI). The data, presented at the 52 nd Interscience Conference on Antimicrobial Agents and Chemotherapy (ICAAC), showed the potential to reduce direct medical costs nearly in half compared to inpatient treatment of ABSSSI.

“Our research team observed that caring for ABSSSI patients in outpatient settings rather than in the hospital may present an opportunity to reduce resource use and treatment costs up to 44 percent. PICC (peripherally inserted central catheter) lines also represent a substantial economic burden accounting for 28 to 43 percent of outpatient costs,” said Alexandra Khachatryan, MPH, outcomes research manager, Pharmerit North America LLC, and the lead author of the abstract presented at the 2012 ICAAC meeting.

According to Russ Petrak, M.D., an infectious disease specialist for the past 25 years, “Many ABSSSI patients can be treated in outpatient settings. There’s no need for them to be in the hospital, but today that remains the dominant modality. Newer treatment regimens that have the ability to reduce inpatient stay and remove the burden of PICC lines may help alleviate the economic burden of ABSSSI.”

Abstract Presented at ICAAC 2012

Costs of Outpatient Parenteral Antibiotic Therapy (OPAT) for the Management of Gram+ Acute Bacterial Skin and Soft Tissue Infections (abSSTIs) (Khachatryan, et al). Session Number: 020, Presentation Number: K-239

Background: Extended inpatient care and/or OPAT to deliver intravenous antibiotics are often required in the treatment of Gram+ abSSTIs. Economic drivers of OPAT provided either in the patient’s home, physician office, or infusion center have not been well described in the literature. This analysis estimated, from a US payer perspective, costs of treating Gram+ abSSTIs with inpatient care followed by OPAT.

Methods: A decision tree model was used to estimate direct non-drug medical cost of treating Gram+ abSSTIs. Published trials provided efficacy and adverse event (AE) inputs. Inpatient length of stay (LOS), office visits, OPAT visits/equipment, and AEs were mapped in detail from the literature and standard reimbursement sources. In the base case analysis, equal efficacy among treatments was assumed while varying inpatient LOS and OPAT days. Results were generated for 3-, 5-, and 7-day inpatient scenarios followed by OPAT to achieve a total length of treatment of 14 days. Ranges for OPAT costs reflected once or twice daily infusions. All costs were adjusted to U.S. dollars

Results: Total non-drug medical cost of treatment for abSSTI ranged from $8,790- $15,968. Inpatient medical costs included hospital cost per day ($1853) and cost of AEs ($343). Outpatient medical management with OPAT included either the daily home care ($194) or infusion center fee ($154), insertion of PICC line with fluoroscopy ($786), PICC complications ($188), labs ($102), and physician office visit for evaluation of abSSTI ($222). Inpatient vs outpatient cost breakdown by LOS was: 3 days inpatient ($5,902) / 11 days OPAT ($2,888-$3,429); 5 days inpatient ($9,608) / 9 days OPAT ($2,580-$3,042); 7 days inpatient ($13,314) / 7 days OPAT ($2,273-$2,654).

Conclusions: Shifting treatment of abSSTI from inpatient to OPAT settings may result in direct medical cost savings up to 44%. Typical OPAT scenarios represent roughly a third of the total medical cost of treatment. Within OPAT, PICC line costs/complications account for 28-43% of the OPAT burden. The future economic benefit of new therapies for abSSTI may be driven in part by the ability to reduce inpatient LOS and OPAT costs.

“This work suggests that treating the appropriate ABSSSI patient in an outpatient setting may help reduce overall treatment costs,” said Durata Therapeutics Chief Executive Officer Paul R. Edick. “We believe an ABSSSI therapy dosed once weekly and proven to be safe and effective may help facilitate the move to the outpatient setting.”

About Durata Therapeutics

Durata Therapeutics is a pharmaceutical company focused on the development and commercialization of novel therapeutics for patients with infectious diseases and acute illnesses. Durata is currently enrolling and dosing patients in two global Phase 3 clinical trials with its lead product candidate, dalbavancin, for the treatment of patients with acute bacterial skin and skin structure infections, or ABSSSI.

Forward-looking statements

Statements contained in this press release contain forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements in this press release include statements about the potential reduction of treatment costs for outpatient treatment of ABSSSI patients and the potential benefits of outpatient treatment of ABSSSI patients. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the “Risk Factors” section of our most recent quarterly report on Form 10-Q, which is on file with the SEC and is also available on our website. In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our views change. Therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.

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