Medicare Program; Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals (IPPS) and the Long-Term Care Hospital Prospective Payment System and Policy Changes and Fiscal Year (FY) 2026 Rates; Changes to the FY 2025 IPPS Rates Due to Court Decision; Requirements for Quality Programs; and Other Policy Changes; Health Data, Technology, and Interoperability: Electronic Prescribing, Real-Time Prescription Benefit and Electronic Prior Authorization 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36706 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations in the INTERCEPT® Fibrinogen Complex, accurate dosing is challenging in patients with coagulopathic bleeding (Stanford et al., 2023), whereas FIBRYGA® supports a more precise and timely therapeutic approach for those lacking blood type-compatible cryoprecipitate, those requiring urgent fibrinogen replacement, patients who are allergic and/or respond poorly to plasma products, and at-risk immunocompromised patients. The applicant reiterated that FIBRYGA® has been associated with a reduced need for packed red blood cells (PRBCs) and fresh frozen plasma (FFP), lowering the incidence of infections and allergic reactions. In response to CMS’s statement that FIBRYGA® and INTERCEPT® Fibrinogen Complex can be stored at room temperature and are immediately available, the applicant commented that FIBRYGA® may be stored at room temperature with a 48-month shelf life, while INTERCEPT® Fibrinogen Complex may be frozen with a 1-year shelf-life but expires 5 days after thaw. A commenter noted that there are significant differences in practical availability and storag while INTERCEPT® Fibrinogen Complex may be frozen with a 1-year shelf-life but expires 5 days after thaw. A commenter noted that there are significant differences in practical availability and storage requirements. The commenter agreed with CMS that INTERCEPT® Fibrinogen Complex has a 5-day room temperature shelf life once thawed, while FIBRYGA® has a 30- month shelf life at room temperature (2– 25° C) in its unreconstituted form and can be stored directly in emergency departments, operating rooms, and obstetric units. The commenter referenced several additional studies of fibrinogen concentrate as supporting evidence, including Franchini and Lippi (2012), which noted that fibrinogen concentrate is stored as a lyophilized powder at room temperature and can be reconstituted quickly with sterile water and infusion volumes are low, allowing for rapid administration without delays for thawing or cross-matching; Winearls et al. (2021), which found that fibrinogen concentrate administration in trauma patients with major hemorrhage and hypofibrinogenemia was achieved significantly faster than cryoprecipitate; and S 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00172 Fmt 4701 Sfmt 4700 in trauma patients with major hemorrhage and hypofibrinogenemia was achieved significantly faster than cryoprecipitate; and S 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00172 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36707 purified formulation and ease of administration results in the treatment of a different patient population compared to INTERCEPT® Fibrinogen Complex because while these differences may or may not lead to improved clinical outcomes, they do not differentiate the disease or patient population being treated by the two technologies. Because FIBRYGA® meets all three of is substantially the substantial similarity criteria, we believe FIBRYGA® similar to the INTERCEPT® Fibrinogen Complex. Therefore, we consider the beginning of the newness period for FIBRYGA® to begin on the date the INTERCEPT® Fibrinogen Complex became commercially available for the treatment and control of bleeding, including massive hemorrhage, associated with fibrinogen deficiency. Since INTERCEPT® Fibrinogen Complex has been on the U.S. m became commercially available for the treatment and control of bleeding, including massive hemorrhage, associated with fibrinogen deficiency. Since INTERCEPT® Fibrinogen Complex has been on the U.S. market since May 5, 2021, the 3-year anniversary date of its entry onto the market occurred prior to FY 2026, and therefore, FIBRYGA® does not meet the newness criterion and is not eligible for new technology add-on payments for FY 2026. We note that we received public comments with regard to the cost and substantial clinical improvement criteria for this technology, but because we have determined that the technology does not meet the newness criterion and therefore is not eligible for approval for new technology add-on payments for FY 2026, we are not summarizing comments received or making a determination on those criteria in this final rule. f. GRAFAPEXTM (treosulfan) Medexus Pharma, Inc. submitted an application for new technology add-on payments for GRAFAPEXTM for FY 2026. According to the applicant, GRAFAPEXTM is a novel conditioning agent for use in combination with fludarabine as a preparative regimen for allogeneic hematopoietic stem cell transplantation (alloHSCT) in adult and the applicant, GRAFAPEXTM is a novel conditioning agent for use in combination with fludarabine as a preparative regimen for allogeneic hematopoietic stem cell transplantation (alloHSCT) in adult and pediatric patients one year of age and older with acute myeloid leukemia (AML) or myelodysplastic syndrome (MDS). We note that Medexus Pharma, Inc. submitted an application for new technology add-on payments for GRAFAPEXTM for FY 2023 under the name treosulfan, as summarized in the FY 2023 IPPS/LTCH PPS proposed rule (87 FR 28296 through 28302), that it withdrew prior to the issuance of the FY 2023 IPPS/LTCH PPS final rule (87 FR 48920). Please refer to the online application posting for GRAFAPEXTM, available at https://mearis.cms.gov/public/ publications/ntap/NTP241007WE8D6, for additional detail describing the technology and the disease treated by the technology. With respect to the newness criterion, according to the applicant, GRAFAPEXTM was granted NDA approval from FDA on January 21, 2025, for use in combination with fludarabine as a preparative regimen for alloHSCT in adult and pediatric patients one year of age and older with either AML or MDS. The applicant stated that GRAFAP , 2025, for use in combination with fludarabine as a preparative regimen for alloHSCT in adult and pediatric patients one year of age and older with either AML or MDS. The applicant stated that GRAFAPEXTM became commercially available on February 20, 2025, because the applicant required time after FDA marketing authorization to build inventory and stock the third-party logistic wholesalers prior to commercial launch. We stated that we were interested in additional information regarding the cause of any delay in the technology’s commercial availability, such as additional information about building inventory and stocking logistic wholesalers. According to the applicant, GRAFAPEXTM is administered via intravenous infusion in conjunction with fludarabine from either a 1g or 5g vial after reconstitution with a 20mL or 100mL solution. Per the package insert,50 the recommended dosage of GRAFAPEXTM is 10g/m2 body surface area per day, given as a 2-hour intravenous infusion on 3 consecutive days (day -4, -3, -2) in conjunction with fludarabine before hematopoietic stem cell infusion on day 0. Per the applicant, based on the estimated average body size for Medicare patients being treated wi ys (day -4, -3, -2) in conjunction with fludarabine before hematopoietic stem cell infusion on day 0. Per the applicant, based on the estimated average body size for Medicare patients being treated with GRAFAPEXTM and the labeling for a 3-day treatment, the estimated average dose per inpatient stay is 54g. 50 Oncotec Pharma Produktion GmbH. GRAFAPEXTM [package insert]. (Revised 2/2025). Available at: https://www.accessdata.fda.gov/ drugsatfda_docs/label/2025/214759s001lbl.pdf. According to the applicant, effective October 1, 2022, the following ICD–10– PCS codes may be used to uniquely describe procedures involving the use of GRAFAPEXTM: XW04388 (Introduction of treosulfan into central vein, percutaneous approach, new technology group 8) and XW03388 (Introduction of treosulfan into peripheral vein, percutaneous approach, new technology group 8). The applicant provided a list of diagnosis codes that may be used to currently identify the indication for GRAFAPEXTM under the ICD–10–CM coding system. Please refer to the online application posting for the complete list of ICD–10–CM codes provided by the applicant. As previously discussed, if a technology meets all three of the substantia ng system. Please refer to the online application posting for the complete list of ICD–10–CM codes provided by the applicant. As previously discussed, if a technology meets all three of the substantial similarity criteria under the newness criterion, it would be considered substantially similar to an existing technology and would not be considered ‘‘new’’ for the purpose of new technology add-on payments. With respect to the substantial similarity criteria, the applicant asserted that GRAFAPEXTM is not substantially similar to other currently available technologies because GRAFAPEXTM is a new chemical entity with a unique structure and unique mechanism of action that permits it to be metabolized without the liver, resulting in reduced toxicity while still delivering effective treatment, including for older and/or more comorbid patients who are ineligible for myeloablative conditioning (MAC) and face higher relapse risk if reduced intensity conditioning (RIC) is used. The applicant stated that GRAFAPEXTM addresses the unmet need in this patient population and is the only FDA- approved alloHSCT conditioning agent for AML and MDS, and that therefore, the technology meets the newness c ed that GRAFAPEXTM addresses the unmet need in this patient population and is the only FDA- approved alloHSCT conditioning agent for AML and MDS, and that therefore, the technology meets the newness criterion. The following table summarizes the applicant’s assertions regarding the substantial similarity criteria. Please see the online application posting for GRAFAPEXTM for the applicant’s complete statements in support of its assertion that GRAFAPEXTM is not substantially similar to other currently available technologies. BILLING CODE 4120–01–P 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00173 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 36708 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k BILLING CODE 4120–01–C With respect to the substantial similarity criteria, we noted in the FY 2026 IPPS/LTCH PPS proposed rule (90 FR 18119) that GRAFAPEXTM is an alkylating agent like other drugs used in conditioning, such as busulfan and melphalan. While the applicant stated that GRAFAPEXTM has a unique me PPS proposed rule (90 FR 18119) that GRAFAPEXTM is an alkylating agent like other drugs used in conditioning, such as busulfan and melphalan. While the applicant stated that GRAFAPEXTM has a unique mechanism of action and a unique structure that allows it to bypass liver metabolism and subsequently reduce treatment related toxicity, we questioned whether bypassing liver metabolism is the mechanism of action of a conditioning agent, or if it instead relates to clinical outcomes, such as the side effect profile of GRAFAPEXTM. In VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00174 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00175 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36710 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations or cyclophosphamide was evident after high-dose treosulfan.53 The applicant also stated that Scheulen at al. (2000) discussed these differences in the context of GRAFAPEXTM’s mechanism of action, stating that, in contrast to busulfan, high-dose treosulfan did not induce severe hepatoto d that Scheulen at al. (2000) discussed these differences in the context of GRAFAPEXTM’s mechanism of action, stating that, in contrast to busulfan, high-dose treosulfan did not induce severe hepatotoxicity or veno- occlusive disease in the nine patients treated at or above MTD of 47 g/m2, and that this might be considered a consequence of the different mode of alkylation and the reliable i.v. infusion of high-dose treosulfan. The applicant asserted that these points confirm GRAFAPEXTM’s unique mechanism of action and demonstrate that bypassing liver metabolism and allowing for delivery of the alkylating agent directly to the blood is a key aspect of GRAFAPEXTM’s mechanism of action by reflecting and underscoring the distinct way that GRAFAPEXTM produces an effect in the body. In response to CMS’s note that MAC, NMA, and RIC are all options for patients with AML or MDS, the applicant stated that this does not reflect the clinical realities, individual patient circumstances, and complex balancing that physicians and patients must work through in treating these conditions. The applicant further stated that while some previously available regimens could be used in older and/or more co balancing that physicians and patients must work through in treating these conditions. The applicant further stated that while some previously available regimens could be used in older and/or more comorbid patients, not all such patients could be treated with a previously available regimen, and GRAFAPEXTM-based conditioning provides a new and critically important option for these patients. The applicant also stated that GRAFAPEXTM is the first and only FDA-approved allo-HSCT conditioning agent to treat patients with AML or MDS. The applicant further stated that, within the population of patients with AML or MDS, GRAFAPEXTM is specifically designed to be used in conditioning regimens for older and/or more comorbid patients who are ineligible for previously existing MAC regimens where RIC may be attempted, but results in compromised effectiveness. The applicant explained that, because of MAC regimens’ high toxicity and RIC regimens’ higher risk of relapse, and thus, lower effectiveness, many patients would be prevented from pursuing BMT. In addition, the applicant stated that in the absence of GRAFAPEXTM availability, there is a subset of patients who would be viewed as nonviable BM many patients would be prevented from pursuing BMT. In addition, the applicant stated that in the absence of GRAFAPEXTM availability, there is a subset of patients who would be viewed as nonviable BMT candidates due to the lack of an appropriate conditioning regimen. The applicant added that many patients with MDS or AML who are older and/or have significant comorbidities are not referred to and do not undergo alloHSCT; but instead, only a highly select group of patients in this sub- population are viewed as viable candidates for this treatment. The applicant cited a review article in which the authors note that age alone was one of the most frequent barriers to BMT because of dated assumptions and bias against older patients, a lack of prospective studies in older adults, perceived higher risks versus benefits, current guidelines, higher levels of comorbidities, and a bias against HSCT as a modality in older adults among physicians.54 The applicant asserted that GRAFAPEXTM provides an appropriate, and therefore, a critical new conditioning regimen for this subpopulation that can help address the previously observed resistance to providing BMT for these patients. The applicant cit n appropriate, and therefore, a critical new conditioning regimen for this subpopulation that can help address the previously observed resistance to providing BMT for these patients. The applicant cited multiple studies that discuss the unmet need among older patients and/or those with significant comorbidities for alloHSCT. The applicant stated that GRAFAPEXTM-based regimens are particularly well-suited and provide significant clinical benefits for this patient population. The applicant reiterated that Scott et al. (2017), submitted as part of its application, discusses how alloHSCT conditioning regimens available prior to FDA approval of GRAFAPEXTM, are not suitable for all patients, especially older and/or more comorbid patients. The applicant also stated that published literature recognizes the limits of conventional MAC and RIC regimens. In addition, the applicant stated that multiple peer-reviewed studies submitted in its application confirm that GRAFAPEXTM is a critical novel regimen that addresses the unmet need for older and/or comorbid AML and MDS patients. The applicant also stated GRAFAPEXTM-based conditioning uniquely provides a regimen with myeloablative-intensity com gimen that addresses the unmet need for older and/or comorbid AML and MDS patients. The applicant also stated GRAFAPEXTM-based conditioning uniquely provides a regimen with myeloablative-intensity combined with significantly lower toxicity, without an increase in mortality. The applicant asserted that GRAFAPEXTM-based conditioning, thereby fuses RIC regimens’ lower organ toxicities with MAC regimens’ potent antileukemic properties, expanding the availability of 53 Max E. Scheulen et al., Clinical Phase I Dose Escalation and Pharmacokinetic Study of High-Dose Chemotherapy with Treosulfan and Autologous Peripheral Blood Stem Cell Transplantation in Patients with Advanced Malignancy, 6 Clinical Cancer Research 4209, 4209 (2000). 54 Colin Flannelly et al., Barriers to Hematopoietic Cell Transplantation for Adults in the United States: A Systematic Review with a Focus on Age, 26 Biol. Blood Marrow Transplant. 2335, 2341 (2020). myeloablative conditioning to a new patient population. The applicant reiterated results from Beelen et al. (2022), which per the applicant, demonstrates the superiority of GRAFAPEXTM-based conditioning over busulfan-based conditioning in overall survival (OS), e licant reiterated results from Beelen et al. (2022), which per the applicant, demonstrates the superiority of GRAFAPEXTM-based conditioning over busulfan-based conditioning in overall survival (OS), event-free survival (EFS), non-relapse mortality (NRM), and adverse events, such as GVHD in older and/or more comorbid patients who were ineligible for MAC. The applicant stated that the authors of the pivotal phase 3 clinical trial, Beelen et al. (2022), concluded that the treosulfan regimen appears particularly suitable for older AML and MDS patients. In response to CMS’s request for additional information regarding the cause of delay in commercial availability, the applicant reiterated that GRAFAPEXTM received FDA approval on January 21, 2025, and the first commercial sale of GRAFAPEXTM occurred on February 20, 2025. The applicant further explained that, in its new technology add-on payment application, it had estimated the amount of time (2 to 3 months) after FDA- approval required to bring GRAFAPEXTM to market, which included building inventory and stocking the third-party logistic wholesalers. The applicant stated that during the 1-month period prior to commercial availability, it ring GRAFAPEXTM to market, which included building inventory and stocking the third-party logistic wholesalers. The applicant stated that during the 1-month period prior to commercial availability, it undertook critical activities to ensure complete readiness across both product and services to support all stakeholders, which included: transfer of NDA ownership from Medac in Germany to the applicant in the U.S.; submission of required FDA filings; shipping the final drug product from its manufacturing site in Germany to the U.S., which required the product to be cleared by U.S. Customs and Border Protection; labeling and preparation of the product into approved packaging; conduction of batch record reviews; releasing the final product to the applicant’s third-party logistics provider for distribution to the market; and ensuring that all wraparound services, such as pharmacovigilance program, medical affairs training and certification, and its patients services hub, were fully operational. The applicant asserted that the newness period for GRAFAPEXTM should begin on the date of commercial availability, February 20, 2025. Response: We thank the applicant for its comment. Based on our al. The applicant asserted that the newness period for GRAFAPEXTM should begin on the date of commercial availability, February 20, 2025. Response: We thank the applicant for its comment. Based on our review of comments received and information submitted by the applicant as part of its FY 2026 new technology add-on payment application for GRAFAPEXTM, we agree with the applicant that GRAFAPEXTM has a unique mechanism VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00176 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36711 of action because it is the first and only FDA-approved allo-HSCT conditioning agent for patients with AML and MDS. Therefore, we agree with the applicant that GRAFAPEXTM is not substantially similar to existing treatment options and meets the newness criterion. With regards to the commercial availability of GRAFAPEXTM, as we have discussed in prior rulemaking (86 FR 45132; 77 FR 53348), generally, our policy is to begin the newness period on the date of FDA approval or clearance or, if later, the date o GRAFAPEXTM, as we have discussed in prior rulemaking (86 FR 45132; 77 FR 53348), generally, our policy is to begin the newness period on the date of FDA approval or clearance or, if later, the date of availability of the product on the U.S. market. Although the applicant stated in its public comment that GRAFAPEXTM became commercially available on February 20, 2025, the date of first sale, we note that we do not consider the date of first sale of a product, or first shipment of a product, as an indicator of the entry of a product onto the U.S. market; neither of these dates indicate when a technology in fact became available for sale (88 FR 58802). It is unclear from the information provided when the technology first became available for sale and, absent additional information from the applicant, we cannot determine a newness date based on a documented delay in the technology’s availability on the U.S. market. Therefore, we consider the beginning of the newness period for GRAFAPEXTM to commence on January 21, 2025, when GRAFAPEXTM received FDA marketing authorization. With respect to the cost criterion, the applicant provided two analyses to demonstrate that GRAFAPEXTM meets the c o commence on January 21, 2025, when GRAFAPEXTM received FDA marketing authorization. With respect to the cost criterion, the applicant provided two analyses to demonstrate that GRAFAPEXTM meets the cost criterion. Each analysis followed the order of operations summarized in the following table. Because the final inflated average case-weighted standardized charge per case exceeded the average case- weighted threshold amount in both scenarios, the applicant asserted that GRAFAPEXTM meets the cost criterion. We invited public comments on whether GRAFAPEXTM meets the cost criterion. Comment: The applicant reiterated that the two cost criterion analyses submitted with its application demonstrate that GRAFAPEXTM meets the cost criterion. Response: We thank the applicant for its comment. We agree that the final inflated average case-weighted standardized charge per case exceeded the average case-weighted threshold amount under both of the scenarios. Therefore, GRAFAPEXTM meets the cost criterion. With regard to the substantial clinical improvement criterion, the applicant asserted that GRAFAPEXTM offers a treatment option for a patient population unresponsive to, or ineligible for, curre rion. With regard to the substantial clinical improvement criterion, the applicant asserted that GRAFAPEXTM offers a treatment option for a patient population unresponsive to, or ineligible for, currently available treatments because GRAFAPEXTM offers a critical new treatment option and addresses an unmet need for alloHSCT conditioning for older and/or more comorbid patients who have AML or MDS and are ineligible for currently available MAC regimens and face higher relapse risk if a RIC regimen is used. Additionally, per the applicant, GRAFAPEXTM significantly improves clinical outcomes relative to existing technologies because GRAFAPEXTM- based conditioning has shown superiority in survival (in terms of overall and event-free survival) and non-relapse mortality, as well as significant reductions in adverse events, such as graft-versus-host disease (GVHD), veno-occulsive disease (VOD), and infections, compared to previously available regimens. The applicant provided 10 studies to support these claims, as well as 1 background article VerDate Sep 2014 01:37 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00177 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W rt these claims, as well as 1 background article VerDate Sep 2014 01:37 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00177 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00178 Fmt 4701 Sfmt 4725 E:\FR\FM\04AUR2.SGM 04AUR2 / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00179 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00180 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36715 stated that is not necessarily true for all patients, and the clinical consequences of RIC regimens should be taken into account, namely that such regimens involve reduced treatment intensity leading to higher rates of relapse and other adverse effects. The applicant further stated that GRAFAPEXTM provides a critical treatment option for the set of older and/or more comorbid AML or MDS patients who otherwise wo s of relapse and other adverse effects. The applicant further stated that GRAFAPEXTM provides a critical treatment option for the set of older and/or more comorbid AML or MDS patients who otherwise would not be candidates for BMT due to the lack of a suitable conditioning regimen. The applicant stated that Scott et al. (2017) concluded that MAC is superior to RIC when patients can tolerate the regimen due to RIC’s substantially higher relapse rate with only a modest decrease in transplant- related mortality (TRM). The applicant stated that prior to the availability of GRAFAPEXTM, patients would have either no option at all or, in an effort to do something to treat their life- threatening conditions, would be faced with no choice other than RIC and its significantly increased risk of relapse and additional negative side effects. The applicant added that Beelen et al (2022) concluded that the GRAFAPEXTM-based conditioning regimen led to superior outcomes after alloHSCT compared with the reference RIC busulfan regimen, thereby appearing particularly suitable for older AML and MDS transplantation candidates. In addition, the applicant stated that other studies, such as Wedge et al. (20 reference RIC busulfan regimen, thereby appearing particularly suitable for older AML and MDS transplantation candidates. In addition, the applicant stated that other studies, such as Wedge et al. (2020) and Pasic et al. (2024), that have similarly focused on patients ineligible for conventional MAC regimens, have also confirmed the Beelen et al. (2022) results. Specifically, the applicant highlighted that Wedge et al. (2020), which studied mostly MDS patients, found similar overall survival among GRAFAPEXTM, standard myeloablative conditioning (SMA), and NMA regimens with GRAFAPEXTM having lower rates of chronic GVHD and similar rates of acute GVHD compared to both SMA and NMA. The applicant also stated that Pasic et al. (2024) found significantly higher overall and event- free survival with GRAFAPEXTM compared to RIC and Nagler et al. (2017) found a relative lack of adverse effects in patients treated with a GRAFAPEXTM-based conditioning regimen. In response to CMS’s concern regarding the higher rate of relapse with GRAFAPEXTM-based conditioning regimens compared to RIC in Fraccaroli et al. (2024) and Bug et al. (2023), the applicant asserted that the isolated results of overall g the higher rate of relapse with GRAFAPEXTM-based conditioning regimens compared to RIC in Fraccaroli et al. (2024) and Bug et al. (2023), the applicant asserted that the isolated results of overall relapse in these two studies do not reflect the totality of evidence submitted within its application or the overall weight of the data. The applicant stated that this type of isolated analysis fails to acknowledge the positive outcomes reflected in these two studies. The applicant further stated that, in terms of overall relapse, the Fraccaroli et al. (2024) and Bug et al. (2023) results are outliers compared to the multiple additional peer-reviewed, published studies that it provided in its new technology add-on payment application. The applicant asserted that the nature of clinical research is such that results are not always uniform across all studies for every single outcome measure and that they submitted multiple studies for this reason, and state that CMS has noted that it evaluates the new technology add-on payment ‘‘substantial clinical improvement’’ criterion based on a ‘‘totality of circumstances’’ analysis, and the body of literature presented in their application and thei s the new technology add-on payment ‘‘substantial clinical improvement’’ criterion based on a ‘‘totality of circumstances’’ analysis, and the body of literature presented in their application and their comments reflects a totality of circumstances based on more than ten peer-reviewed published studies showing strong evidence and trends of superiority in key clinical outcomes including EFS, OS, and NRM for GRAFAPEXTM-based regimens compared to many other existing conditioning regimens. In addition, the applicant reiterated the Bug et al. (2023) and Fraccaroli et al. (2024) studies’ results regarding NRM and stated that NRM is an especially significant outcome measure for older patients and/ or those with significant comorbidities, an important subpopulation for Medicare, who may be considered for BMT because they face particularly significant risk of treatment-related mortality. In response to CMS’s questions regarding the submitted studies’ generalizability to the Medicare population, the applicant stated the cited literature includes significant percentages and numbers of Medicare- eligible patients which demonstrates the extensive study of treatment with GRAFAPEX-based conditioni the applicant stated the cited literature includes significant percentages and numbers of Medicare- eligible patients which demonstrates the extensive study of treatment with GRAFAPEX-based conditioning in patients who are older and/or have significant comorbidities or disabilities, as is typically reflective of the majority of Medicare beneficiaries. The applicant highlighted several examples of additional peer-reviewed literature which demonstrate that GRAFAPEXTM has been used and studied specifically in U.S. populations, in addition to the Canadian and European cohorts, and stated that these articles indicate positive results with GRAFAPEX-based conditioning that are consistent with the studies previously submitted.59 60 61 62 59 Eneida R. Nemecek et al., Conditioning with treosulfan and fludarabine followed by allogeneic The applicant stated that the multiple studies it provided with Canadian and European patient populations are also generalizable to the Medicare population, as clinical guidelines in these countries do not vary in meaningful ways from U.S. clinical guidelines in this area, and there is no evidence indicating that patients’ experiences of AML or MDS or responses nical guidelines in these countries do not vary in meaningful ways from U.S. clinical guidelines in this area, and there is no evidence indicating that patients’ experiences of AML or MDS or responses to conditioning regimens vary depending on the country where they are located. Additionally, the applicant stated that clinical guidelines and treatment practices for older patients with AML or MDS are similar throughout the developed world, including Europe, Canada, and the United States, with data used across the globe to develop treatment recommendations. The applicant also stated that both European and U.S. BMT clinical guidelines include and describe GRAFAPEXTM as a myeloablative conditioning treatment option. In response to CMS’s question whether the age of patients in the studies submitted are generalizable to the Medicare population, the applicant stated that its application and this submitted comment included multiple peer-reviewed published studies that enrolled significant percentages and numbers of both older patients and patients with disabilities and significant comorbidities. The applicant asserted that the patients in its submitted studies are highly generalizable to t entages and numbers of both older patients and patients with disabilities and significant comorbidities. The applicant asserted that the patients in its submitted studies are highly generalizable to the Medicare population, which includes not only individuals age 65 or older but also patients with significant comorbidities and disabilities. The applicant summarized the patient demographics of seven studies in its application that included those over 65 years of age and more comorbid participants.62 63 64 65 66 67 68 69 The applicant reiterated that there is a subpopulation of AML or MDS patients who are older and/or have significant comorbidities and who, prior to the availability of GRAFAPEXTM, were not considered candidates for BMT because their treatment teams concluded there was no appropriate conditioning regimen available. In addition, the hematopoietic cell transplantation for high-risk hematologic malignancies, 17 Biology Blood & Marrow Transplantation 341 (2011). 60 Deeg, 2018, op. cit. 61 Filipino, 2020, op. cit. 62 Mehta, 2025, op. cit. 63 Beelen, 2022, op. cit. 64 Shimoni, 2021, op cit. 65 Bug, 2023, op. cit. 66 Pasic, 2024, op cit. 67 Fraccaroli, 2024, op. cit. 68 Wedg , op. cit. 61 Filipino, 2020, op. cit. 62 Mehta, 2025, op. cit. 63 Beelen, 2022, op. cit. 64 Shimoni, 2021, op cit. 65 Bug, 2023, op. cit. 66 Pasic, 2024, op cit. 67 Fraccaroli, 2024, op. cit. 68 Wedge, 2020, op. cit. 69 Gavriilaki, 2023, op. cit. VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00181 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36716 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations applicant stated that AML and MDS are diseases that primarily affect older patient populations, with a median age at diagnosis 69 and 70 years, respectively. The applicant concluded by noting that GRAFAPEXTM’s pivotal clinical trial observed no significant differences in safety or effectiveness between subjects age 65 or older and younger subjects. In response to CMS’s question about small sample sizes in two submitted studies and generalizability to the Medicare population, the applicant stated that it is important to place these 2 studies in the broader context of all the studies it submitted in its application and comments, including more than 10 published peer-reviewed he applicant stated that it is important to place these 2 studies in the broader context of all the studies it submitted in its application and comments, including more than 10 published peer-reviewed studies in which GRAFAPEXTM was used to treat patients, representing hundreds of patients with consistent trends in key results. The applicant added that totaling the participants of all its submitted studies accounts for more than 3,000 patients, of which over 1,200 received treatment with GRAFAPEXTM. The applicant emphasized that these studies also included significant numbers of patients 65 years or older and/or patients with significant comorbidities and disabilities, who are highly generalizable to the Medicare population. In addition, the applicant stated that several of the studies provided had significantly larger patient populations, and while the Chichra et al. (2023) and Fraccaroli et al. (2024) had small sample sizes compared to other submitted studies, they provide helpful confirmatory results comparing GRAFAPEXTM-based conditioning regimens to other available regimens. The applicant also stated that these two studies focused on the specific patient population and sub-pop nfirmatory results comparing GRAFAPEXTM-based conditioning regimens to other available regimens. The applicant also stated that these two studies focused on the specific patient population and sub-population of interest, contributing to the totality of circumstances in demonstrating GRAFAPEXTM’s significant clinical value. In addition, the applicant stated that AML and MDS are life-threatening and relatively rare conditions, and that FDA granted GRAFAPEXTM orphan drug designation in April 2015. The applicant asserted that notwithstanding the realities and challenges of rare diseases, it believes that the totality of data and evidence submitted provides a robust set of peer-reviewed, published literature demonstrating GRAFAPEXTM’s significant clinical benefits for AML or MDS patients. In response to CMS’s concern about the Beelen et al. (2024) study’s missing data, the applicant stated it is unclear what significance this missing data has to the GRAFAPEXTM results, since it was data for the comparator arms. The applicant asserted that it seems one would have to assume that all missing data was positive for the comparators in order to undermine the results with respect to GRAFAPEXTM. the comparator arms. The applicant asserted that it seems one would have to assume that all missing data was positive for the comparators in order to undermine the results with respect to GRAFAPEXTM. The applicant further stated that Beelen et al. (2022) and other submitted studies in its application do not have missing data and demonstrate that GRAFAPEXTM- based conditioning demonstrates superior EFS, OS, and NRM compared to previously available conditioning regimens. The applicant asserted that the overwhelming majority of results and prominent trends of GRAFAPEXTM reflected in the peer-reviewed published literature demonstrate superior outcomes in EFS, OS, and NRM compared to a wide range of other available conditioning regimens, despite isolated outcome measures from certain individual studies. In response to CMS’s concern regarding some conflicting outcome results, the applicant stated that the nature of different studies and comparator regimens is that specific data points and outcome measures are not always fully and uniformly consistent with respect to each individual metric across all studies. The applicant further stated that it provided a large body of evidence to prese utcome measures are not always fully and uniformly consistent with respect to each individual metric across all studies. The applicant further stated that it provided a large body of evidence to present a fulsome picture of GRAFAPEXTM’s substantial clinical benefits compared to several other existing conditioning regimens, including conventional MAC, RIC/NMA, and other conditioning regimens that could be described as ‘‘reduced toxicity conditioning’’ or ‘‘RTC’’ regimens. The applicant stated that the proposed rule did not identify concerns regarding the provided studies that show GRAFAPEXTM’s superior EFS. The applicant reiterated its belief that GRAFAPEXTM-based conditioning has shown superior outcomes for EFS, OS, and NRM as well as significant reductions in several adverse events compared to other agents and regimens used in allo-HSCT conditioning. The applicant stated that the randomized, controlled Beelen et al. (2022) clinical trial demonstrated GRAFAPEXTM’s superiority in EFS, OS, and NRM compared to busulfan-based conditioning. The applicant further stated that Beelen et al. (2024) replicated these results in GRAFAPEXTM-treated patients compared to registries of melphalan- S, and NRM compared to busulfan-based conditioning. The applicant further stated that Beelen et al. (2024) replicated these results in GRAFAPEXTM-treated patients compared to registries of melphalan- and busulfan-treated patients. The applicant asserted the overall body of evidence demonstrates that physicians and researchers consistently turn to GRAFAPEXTM for older and/or more comorbid patients, and that GRAFAPEXTM results for NRM and OS are favorable in this patient population. The applicant reiterated the Shimoni et al. (2021) study’s results and highlighted that the median age for patients who received a MAC regimen was 8 years younger than those who received GRAFAPEXTM-based conditioning. The applicant stated that because clinicians often administer GRAFAPEXTM to older and/or more comorbid patients, when a retrospective cohort demonstrates similar results for GRAFAPEXTM and other treatments, it may at least be in part due to the GRAFAPEXTM cohort’s older age and increase in comorbidities. In response to CMS’s concern regarding similar OS between GRAFAPEXTM-based regimens and RIC in certain studies, the applicant asserted that the selective focus on a single metric in the Bug bidities. In response to CMS’s concern regarding similar OS between GRAFAPEXTM-based regimens and RIC in certain studies, the applicant asserted that the selective focus on a single metric in the Bug et al. (2023), Chichra et al. (2024), and Fraccaroli et al. (2024) studies does not account for the multiple other submitted studies in its application in which GRAFAPEXTM demonstrated significantly improved, and even superior, OS compared to other conditioning regimens. The applicant further stated that this focus fails to account for GRAFAPEXTM’s superior NRM results in the Fraccaroli et al. (2024) study, significantly improved NRM in the Bug et al. (2023) study, and fewer acute toxicities and infections in the Chichra et al. (2024) study. In addition, the applicant stated that the Chichra et al. (2024) study also highlighted GRAFAPEXTM’s reduced hospital LOS compared to the melphalan-based regimen. In response to CMS’s concern regarding GRAFAPEXTM’s similar NRM rate compared to other technologies in some studies, the applicant again stated that this isolated analysis fails to account for these studies’ positive results as well as other studies in which GRAFAPEXTM showed significantl chnologies in some studies, the applicant again stated that this isolated analysis fails to account for these studies’ positive results as well as other studies in which GRAFAPEXTM showed significantly improved or superior NRM compared to other conditioning regimens. The applicant reiterated results from Chichra et al. (2024), Gavriilaki et al. (2023), Shimoni et al. (2021), and Wedge et al. (2020). In response to CMS’s concern that some studies showed some differences in the rate of adverse effects between the GRAFAPEXTM-based regimen and comparators, the applicant asserted that this analysis does not assess or account for the overall body of data and totality of circumstances reflected in its provided studies and fails to account for the positive results for GRAFAPEX- based conditioning in the noted studies. The applicant reiterated the results of studies submitted with its new technology add-on payment application. The applicant also stated that other peer-reviewed publications have VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00182 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00182 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36717 similarly recognized GRAFAPEXTM’s low organ toxicity, which multiple publications have attributed to the technology’s unique mechanism of action. Specifically, the applicant stated that GRAFAPEXTM’s distinct non- enzymatic activation targets the drug to the bone marrow and blood, sparing organs like the brain, lungs, and liver and helps account for the clinically observed lower hepato-, pulmo-, and neurotoxicity compared to busulfan- based conditioning regimens. The applicant concluded by emphasizing that a one-study-at-a-time, one-metric-at-a-time type of analysis does not account for the overall thrust of the complete body of data and the significant, consistent trends it demonstrates. The applicant urged CMS to evaluate the body of peer-reviewed published literature with an eye toward the overall picture it presents, which it stated overwhelmingly demonstrates that GRAFAPEX-based conditioning has shown superior uate the body of peer-reviewed published literature with an eye toward the overall picture it presents, which it stated overwhelmingly demonstrates that GRAFAPEX-based conditioning has shown superior outcomes for EFS, OS, and NRM and significant reductions in several adverse events compared to other existing conditioning regimens. Response: We thank the applicant and other commenter for their comments regarding the substantial clinical improvement criterion. Based on the additional information received, we agree with the applicant and commenter that GRAFAPEXTM represents a substantial clinical improvement over existing technologies because GRAFAPEXTM improves overall survival with similar or lower frequencies of clinically significant adverse events compared to existing treatments for allo- HSCT conditioning in patients with AML or MDS who are ineligible for MAC. After consideration of the public comments we received and the information included in the applicant’s new technology add-on payment application, we have determined that GRAFAPEXTM meets the criteria for approval for new technology add-on payment. Therefore, we are approving new technology add-on payments for this technolo payment application, we have determined that GRAFAPEXTM meets the criteria for approval for new technology add-on payment. Therefore, we are approving new technology add-on payments for this technology for FY 2026. Cases involving the use of GRAFAPEXTM that are eligible for new technology add-on payments will be identified by ICD–10– PCS codes XW03388 (Introduction of treosulfan into peripheral vein, percutaneous approach, new technology group 8) or XW04388 (Introduction of treosulfan into central vein, percutaneous approach, new technology group 8). In its application, the applicant stated that the anticipated cost of GRAFAPEXTM is $610 for a 1 g vial and $3,050 for a 5 g vial. Per the applicant, based on the recommended dose (10g/ m2) and estimated average body size for Medicare patients being treated, 18 g of GRAFAPEXTM per treatment (three 1 g vials and three 5 g vials) is required for each day of a three-day course of treatment, totaling an average dose per inpatient stay of 54 g. Therefore, the applicant estimated that the average cost for GRAFAPEXTM is $32,940 per inpatient stay. Under § 412.88(a)(2), we limit new technology add-on payments to the lesser of 65 percent of th . Therefore, the applicant estimated that the average cost for GRAFAPEXTM is $32,940 per inpatient stay. Under § 412.88(a)(2), we limit new technology add-on payments to the lesser of 65 percent of the average cost of the technology, or 65 percent of the costs in excess of the MS–DRG payment for the case. As a result, the maximum new technology add-on payment for a case involving the use of GRAFAPEXTM is $21,411 for FY 2026. g. IMDELLTRA® (tarlatamab-dlle) for FY 2026. According Amgen, Inc. submitted an application for new technology add-on payments for IMDELLTRA® to the applicant, IMDELLTRA® is a novel, first-in-class bispecific T-cell engager (BiTE® ) molecule for the treatment of adult patients with extensive stage small cell lung cancer (ES–SCLC) with disease progression on or after platinum-based chemotherapy. According to the applicant, IMDELLTRA® works by binding to the delta-like ligand 3 (DLL3) antigen expressed on the surface of SCLC tumor cells and the cluster of differentiation 3 (CD3) co-receptor expressed on the surface of T cells, causing T-cell activation, release of inflammatory cytokines, and lysis of DLL3-expressing cells. Please refer to the online application , tion 3 (CD3) co-receptor expressed on the surface of T cells, causing T-cell activation, release of inflammatory cytokines, and lysis of DLL3-expressing cells. Please refer to the online application , available at posting for IMDELLTRA® https://mearis.cms.gov/public/ publications/ntap/NTP241007BQ3UB, for additional detail describing the technology and the disease treated by the technology. With respect to the newness criterion, according to the applicant, IMDELLTRA® was granted accelerated approval of its BLA from FDA on May 16, 2024, for the treatment of adult patients with ES–SCLC with disease progression on or after platinum-based chemotherapy. According to the applicant, IMDELLTRA® was commercially available immediately after FDA approval. The applicant stated that the first dose of IMDELLTRA® subsequent doses are 10 mg, with all doses administered by a healthcare provider as a 1-hour intravenous (IV) infusion. Per the applicant, the average is 1 mg and all inpatient dose is 7.3 mg based on available data. The applicant stated the only inpatient data available is for patients who experience cytokine release syndrome (CRS) or immune effector cell-associated neurotoxicity syndrom based on available data. The applicant stated the only inpatient data available is for patients who experience cytokine release syndrome (CRS) or immune effector cell-associated neurotoxicity syndrome (ICANS) after IMDELLTRA® and it is unknown how many patients without these adverse events would receive IMDELLTRA® on an inpatient basis. The applicant submitted a request for unique ICD–10–PCS procedure codes for IMDELLTRA® and was granted approval for use of the following procedure codes effective October 1, 2025: XW033NA (Introduction of tarlatamab-dlle antineoplastic into peripheral vein, percutaneous approach, new technology group 10) and XW043NA (Introduction of tarlatamab- dlle antineoplastic into central vein, percutaneous approach, new technology group 10). The applicant provided a list of diagnosis codes that may be used to currently identify the indication for IMDELLTRA® under the ICD–10–CM coding system. Please refer to the online application posting for the complete list of ICD–10–CM (and PCS) codes provided by the applicant. As previously discussed, if a technology meets all three of the substantial similarity criteria under the newness criterion, it would be considered ICD–10–CM (and PCS) codes provided by the applicant. As previously discussed, if a technology meets all three of the substantial similarity criteria under the newness criterion, it would be considered substantially similar to an existing technology and would not be considered ‘‘new’’ for the purpose of new technology add-on payments. With respect to the substantial is not substantially similarity criteria, the applicant asserted that IMDELLTRA® similar to other currently available technologies because it has a unique mechanism of action as a BiTE® that simultaneously binds DLL3 on SCLC cells and CD3 on T cells and because it is the only therapy specifically studied and shown to improve outcomes for patients who are relapsed or refractory to two or more other therapies and those with treated, stable brain metastases, and that therefore, the technology meets the newness criterion. The following table summarizes the applicant’s assertions regarding the substantial similarity criteria. Please see the online application posting for IMDELLTRA® for the applicant’s complete statements in support of its assertion that IMDELLTRA® is not substantially similar to other currently available tech ase see the online application posting for IMDELLTRA® for the applicant’s complete statements in support of its assertion that IMDELLTRA® is not substantially similar to other currently available technologies. BILLING CODE 4120–01–P VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00183 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36718 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations BILLING CODE 4120–01–C In the FY 2026 IPPS/LTCH PPS therapy for patients with proposed rule (90 FR 18124), we noted that while the applicant asserted that IMDELLTRA® does not involve the treatment of the same or similar disease or patient population because it is the first BiTE® ES–SCLC who have had disease progression on or after platinum-based chemotherapy, per the applicant, other FDA-approved therapies for the treatment of the same patient population (patients who have ES–SCLC with disease progression on or after platinum-based chemotherapy) are currently available, such as lurbinectedin and topotecan. Further, with respect to the applicant’s statements that IMDELLTRA® is the only FD se progression on or after platinum-based chemotherapy) are currently available, such as lurbinectedin and topotecan. Further, with respect to the applicant’s statements that IMDELLTRA® is the only FDA-approved therapy that has been specifically studied and demonstrated improvements in the subset of ES–SCLC patients who have become R/R to two or more therapies or that have stable brain metastases, we stated our belief that these assertions may be relevant to substantial clinical improvement rather than newness and these patients may still be treated with lurbinectedin or topotecan. Therefore, we questioned the applicant’s assertion that IMDELLTRA® patient population compared to existing technology. treats a unique We invited public comments on whether IMDELLTRA® similar to existing technologies and whether IMDELLTRA® meets the newness criterion. is substantially Comment: The applicant submitted a public comment reiterating that IMDELLTRA® meets the newness criterion because it is the first and only approved BiTE® molecule that binds the VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00184 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S irst and only approved BiTE® molecule that binds the VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00184 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00185 Fmt 4701 Sfmt 4725 E:\FR\FM\04AUR2.SGM 04AUR2 / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00186 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36721 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k BILLING CODE 4120–01–C We also received a public comment in response to the New Technology Town Hall meeting notice published in the Federal Register regarding the VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00187 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00188 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36723 data,82 but we questioned whether it is app S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36723 data,82 but we questioned whether it is appropriate to compare clinical trial and real-world data. We noted, for example, that the phase 2 single arm trial for lurbinectedin noted an OS of 9.3 months (Trigo et al. (2020)), and we therefore questioned how the applicant chose the historical control it used in these comparisons of outcomes. In addition, the applicant noted that ORR can be evaluated in a single-arm study and provides the ORR for IMDELLTRA® (40 percent in 3L therapy 83 and 54.5 percent in patients with stable brain metastases 84) but did not provide the ORR for topotecan or lurbinectedin in patients with stable brain metastases, nor in patients that are taking 3L therapy. Therefore, we questioned the applicant’s assertion of improved clinical outcomes for IMDELLTRA® compared to previously available therapy. We stated we agreed with the applicant that head-to-head trials, while preferred, are not required for comparing currently available therapy. However, we noted that among the clinical trial and real-world data pr agreed with the applicant that head-to-head trials, while preferred, are not required for comparing currently available therapy. However, we noted that among the clinical trial and real-world data provided for alternative therapies to IMDELLTRA® , there was no control for confounding variables to ensure similar patients were being compared to those who took IMDELLTRA® . Additionally, we noted that the real-world data provided for lurbinectedin as third line therapy and the data for the subset of patients from DeLLphi-301 with brain metastases were small sample sizes of 14 and 22, respectively, which may limit generalizability of these results to the Medicare population as confounding variables could affect the results. We noted that exclusion of patients with brain metastases from the pivotal phase 2 trial for lurbinectedin does not exclude use of this drug in this patient population. We further questioned the use of von Pawel et al. (1999) study of topotecan as a comparator to IMDELLTRA® since it was conducted approximately 25 years before the IMDELLTRA® phase 2 trial (Ahn et al., 2023) and included some highly varied patient outcomes (such as topotecan duration of responses rang TRA® since it was conducted approximately 25 years before the IMDELLTRA® phase 2 trial (Ahn et al., 2023) and included some highly varied patient outcomes (such as topotecan duration of responses ranging from 9.4–50.1 weeks). We noted that guidelines and treatment protocols for SCLC have evolved over this extended period and the resulting changes in care standards may have impacted the outcomes observed from the older study versus the more recent one. We stated that in addition, the applicant stated that clinical trials of topotecan and lurbinectedin reported higher rates of Grade 3 neutropenia than reported in the DeLLphi-301 study with IMDELLTRA® monotherapy but did not consider other serious adverse events such as cytokine release syndrome (CRS) or immune effector cell-associated neurotoxicity syndrome (ICANS), which are possible side effects for IMDELLTRA® but not for topotecan or lurbinectedin. We further noted that there was no control for potential confounding variables in the patient populations in the comparisons of neutropenia rates, and it is therefore difficult to draw conclusions regarding relative side effect profiles among these different trials. We invited public co atient populations in the comparisons of neutropenia rates, and it is therefore difficult to draw conclusions regarding relative side effect profiles among these different trials. We invited public comments on whether IMDELLTRA® meets the substantial clinical improvement criterion. Comment: The applicant submitted a public comment regarding the substantial clinical improvement criterion and provided responses to CMS’s concerns from the proposed rule. The applicant stated that it is clear from currently available literature that patients with ES–SCLC after failing on chemotherapy have extremely poor outcomes on existing therapies, where response and survival are measured in just a few months, and that when survival is measured in months, it is clear patients need access to new, more efficacious treatments. The applicant commented that the evidence it previously submitted support that IMDELLTRA® satisfies the substantial clinical improvement criterion, and further stated that additional evidence and publications have become available, reinforcing that IMDELLTRA® substantial clinical improvement compared to prior therapy, with IMDELLTRA® FDA-approved therapy to demonstrate a substanti evidence and publications have become available, reinforcing that IMDELLTRA® substantial clinical improvement compared to prior therapy, with IMDELLTRA® FDA-approved therapy to demonstrate a substantial survival advantage over chemotherapy in 2L SCLC in a Phase 3 study. The applicant stated this new evidence unequivocally shows that IMDELLTRA® improvement for 2L+ ES–SCLC patients because it demonstrates that IMDELLTRA® provides statistically significant and clinically meaningful improvement in OS compared to other 2L+ approved therapies. Per the applicant, the new evidence includes results from the DeLLphi-304 trial, as well as an indirect treatment comparison (ITC) assessing the relative efficacy of IMDELLTRA® versus real- world U.S. physicians’ choice of therapies in 3L+ ES–SCLC patients.85 is a substantial clinical representing the first is a 82 Desai, 2023, op. cit. 83 Ahn, 2023, op. cit. 84 Dingemans, 2024, op. cit. 85 Tapan U, Takundwa R, et al. (2025, March 26– 29). A comparison of tarlatamab with real-world Per the applicant, the DeLLphi-304 trial was a randomized, open-label, multicenter, global, Phase 3 trial of 509 patients that compared IMDELLTRA® (n=254) to standard of of tarlatamab with real-world Per the applicant, the DeLLphi-304 trial was a randomized, open-label, multicenter, global, Phase 3 trial of 509 patients that compared IMDELLTRA® (n=254) to standard of care chemotherapy (n=255) in patients with relapsed SCLC after platinum-based 1L chemotherapy. The applicant stated that standard of care chemotherapy was either topotecan, amrubicin, or lurbinectedin; the primary endpoint was OS; key secondary endpoints were PFS and patient-reported outcomes (PRO); and additional secondary endpoints included ORR, disease control, DOR, and safety. Per the applicant, the median age was 65. The applicant further stated that 45 percent of patients had brain metastases (current or prior), 35 percent had liver metastases at baseline, 71 percent received prior PD– L1 inhibitor therapy, and 44 percent had platinum-resistant disease. Per the applicant, the results demonstrated a higher, more durable anticancer activity for IMDELLTRA® compared to chemotherapy. Specifically, the applicant stated that IMDELLTRA® resulted in significantly longer OS compared to chemotherapy (median, 13.6 months vs. 8.3 months; [HR 0.60, 95% CI, 0.47 to 0.77; p 2014 00:36 Aug 02, 2 cifically, the applicant stated that IMDELLTRA® resulted in significantly longer OS compared to chemotherapy (median, 13.6 months vs. 8.3 months; [HR 0.60, 95% CI, 0.47 to 0.77; p 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00189 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36724 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations dyspnea and cough after 18 weeks from baseline in DeLLphi-304, and that changes in chest pain were not statistically significant. The applicant stated that the ITC, which was recently conducted by Tapan et al. (2025), assessed the relative efficacy of IMDELLTRA® versus real- world physicians’ choice of therapies, including lurbinectedin and topotecan, in patients with previously treated ES– SCLC. The applicant stated that the ITC analysis used data from DeLLphi-301 and comparator data from the Flatiron Health Research database, which the applicant stated is a trusted real-world evidence source known for its high- quality, longitudinal, clinical information. The applicant also stated that patients included in the external control cohort from this datab is a trusted real-world evidence source known for its high- quality, longitudinal, clinical information. The applicant also stated that patients included in the external control cohort from this database were treated with a variety of chemotherapies and/or immunotherapies, including lurbinectedin (18 percent), topotecan (15 percent), nivolumab (13 percent), paclitaxel (8 percent), pembrolizumab (7 percent), nivolumab + ipilimumab (5 percent), and others (34 percent). In addition, the applicant stated that the study employed best practices to enhance the reliability of the ITC assessment of treatment effects for IMDELLTRA® versus comparator regimens. To perform the ITC between balanced patient populations, the applicant stated that the study applied the DeLLphi-301 inclusion/exclusion criteria to the Flatiron Health data and adjusted for differences in a comprehensive list of key prognostic factors. The applicant further stated that E-values for hazard ratios (HRs) were estimated, ranging from 2.15 to 2.86, which suggested low likelihood of bias from potential unmeasured confounding variables. The applicant stated that the ITC analysis demonstrated significantly longer OS, PFS, and ng from 2.15 to 2.86, which suggested low likelihood of bias from potential unmeasured confounding variables. The applicant stated that the ITC analysis demonstrated significantly longer OS, PFS, and a higher ORR for IMDELLTRA® versus comparator therapies after propensity score (PS) weighting was applied to balance baseline patient characteristics between cohorts. Per the applicant, the mOS was 15.2 months (95% CI: [10.8, NE]) in DeLLphi-301, which the applicant noted represents more than a two-fold increase in survival versus comparator regimens that had a mOS of 6.0 months (95% CI: [5.0, 7.1]) after adjusting for prognostic factors. The applicant stated the hazard ratio (HR) [95% CI] for OS was significantly in favor of IMDELLTRA® over comparator regimens at 0.45 (95% CI: [0.30, 0.68], p 9 months reported with IMDELLTRA® than that seen with other agents. is substantially longer In response to CMS’s questions about the generalizability of DeLLphi-301 trial data because 14 of the 134 patients treated with the target dose of IMDELLTRA® were from North America (without further specification on the country) and whether differences in treatment guidelines between countries could affect atients treated with the target dose of IMDELLTRA® were from North America (without further specification on the country) and whether differences in treatment guidelines between countries could affect generalizability to the Medicare population, the applicant stated that IMDELLTRA® data is generalizable to the Medicare population. The applicant stated it was a global multicenter trial with representation from Asia, Europe, and North America; the only trial sites in North America were in the United States; and approximately 48 percent of patients were age 65 years or older. The applicant stated that, similarly, the new DeLLphi-304 data also is generalizable to a Medicare population because the ’s clinical trial VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00190 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36725 median age is 65 years. The applicant further stated that real world survival outcomes in 2L+ ES–SCLC do not vary widely among the clinical trial regions of Asia, Europe, and North America, where the main prev e is 65 years. The applicant further stated that real world survival outcomes in 2L+ ES–SCLC do not vary widely among the clinical trial regions of Asia, Europe, and North America, where the main previously available treatment options are chemotherapies like topotecan, amrubicin, irinotecan, taxanes, and lurbinectedin. The applicant also stated that standard of care therapies in these regions show consistently poor outcomes similar to the U.S. population following initiation of 2L and 3L therapy in ES–SCLC patients based on analyses of real-world treatment patterns and outcomes. In response to CMS’s questions about the small sizes of the real-world data that may limit the generalizability of these results to the Medicare population, the applicant stated that Phase 2 clinical trials examine efficacy in a specific patient population and are characterized by relatively small sample sizes of generally 50 to 200 patients. Furthermore, the applicant stated that SCLC is an orphan patient population (only 30,000 to 35,000 new cases diagnosed in the U.S. each year, of which approximately two-thirds are ES– SCLC), and thus trial size is limited by necessity. Per the applicant, as discussed p lation (only 30,000 to 35,000 new cases diagnosed in the U.S. each year, of which approximately two-thirds are ES– SCLC), and thus trial size is limited by necessity. Per the applicant, as discussed previously, the FDA extrapolated clinical benefit out of the IMDELLTRA® Phase 2 DeLLphi-301 clinical trial, awarded the product Breakthrough Therapy Designation, and approved the product under Accelerated Approval. The applicant further stated that, in DeLLphi-304, the OS benefit with IMDELLTRA® versus chemotherapy was consistent across prespecified patient subgroups, including the 44 percent of patients with brain metastases that received IMDELLTRA® or treated). Furthermore, the applicant stated that, given that the median age of the DeLLphi-304 patients was 65 years, it believes that the Phase 3 outcomes are generalizable to the Medicare population and sufficient to determine that IMDELLTRA® substantial clinical improvement in the Medicare population. (asymptomatic, untreated represents a In response to CMS’s question about ’s substantial clinical whether the results of DeLLphi-301 were different between the group of patients who previously received PD–L1 or PD–1 inhibitors versus tho In response to CMS’s question about ’s substantial clinical whether the results of DeLLphi-301 were different between the group of patients who previously received PD–L1 or PD–1 inhibitors versus those who did not, the applicant stated that IMDELLTRA® improvement is consistent regardless of prior PD–L1 therapy. The applicant further stated that DeLLphi-301 reported near identical ORR between the patients with prior PD–L1 and without prior PD– L1. The applicant stated that, in the supplement of Ahn et al. (2023), ’s ORR is 39.7 percent for IMDELLTRA® patients previously exposed to PD–L1 therapy versus 40.7 percent for patients without prior PD–L1 exposure. Per the applicant, consistent with the DeLLphi- 301 data, DeLLphi-304 also demonstrated a comparable overall survival benefit in patients both with (HR 0.61; 95% CI 0.45–0.82) and without (HR 0.65, 95% CI 0.42–1.03) prior PD–L1 inhibitor treatment, compared to standard of care chemotherapy. In response to CMS’s concern that the Sands et al. (2024) and Dingemans et al. (2024) evidence did not provide full detail on their study methods and therefore did not have sufficient information to evaluate these studies, the applicant stated et al. (2024) and Dingemans et al. (2024) evidence did not provide full detail on their study methods and therefore did not have sufficient information to evaluate these studies, the applicant stated that, as summarized in its application, Sands et al. (2024) presented efficacy and safety outcomes from a longer follow-up of the DeLLphi- 301 study at the 2024 World Conference on Lung Cancer, while Dingemans et al. (2024) is an abstract of a post-hoc analysis of DeLLphi-301. Per the applicant, since both stem from the primary DeLLphi-301 study, the statistical methods are the same and the full protocol is available in the supplement to the New England Journal Medicine article. ’s FDA In response to CMS’s question about whether it was appropriate to compare clinical trial and real-world data, the applicant stated that comparisons to previously available therapies are limited by available evidence. The applicant further stated that its application provided literature ranging from clinical trials, real-world analyses, guidelines, to evidence reviews as treatment advancements for ES–SCLC patients have come slowly in the decades preceding IMDELLTRA® approval. The applicant stated that it trials, real-world analyses, guidelines, to evidence reviews as treatment advancements for ES–SCLC patients have come slowly in the decades preceding IMDELLTRA® approval. The applicant stated that it provided the clinical trial evidence that supported the FDA approvals of topotecan, lurbinectedin and IMDELLTRA® as well as multiple real- world analyses. The applicant stated that, for example, Trigo et al. (2020) reported on the pivotal single arm Phase 2 trial that was the basis for lurbinectedin’s approval in 2L ES– SCLC. The applicant further stated in response to CMS’s note that lurbinectedin demonstrated an OS of 9.3 months in the single arm trial, that it also provided the randomized controlled Phase 3 ATLANTIS trial where lurbinectedin failed to reach its primary endpoint of OS. In response to CMS’s question about how the applicant chose the historical control it used in comparing outcomes, the applicant stated that it recognized the challenges and limitations with comparing separate trials. Per the applicant, this is why, in addition to each therapy’s pivotal clinical trial data, it provided more recent evidence in the form of real- world data since topotecan’s FDA approval rate trials. Per the applicant, this is why, in addition to each therapy’s pivotal clinical trial data, it provided more recent evidence in the form of real- world data since topotecan’s FDA approval for SCLC was in 1998. The applicant stated that the new ITC analysis from Tapan et al. (2025) as well as the new DeLLphi-304 data confirm what prior literature suggested, which is that IMDELLTRA® provides statistically significant and clinically meaningful improvement in OS compared to other FDA 2L+ approved therapies. In response to CMS’s concern about is the only ORR data for topotecan and lurbinectedin in patients with stable brain metastases as well as in patients that are taking 3L therapy, the applicant stated that IMDELLTRA® FDA-approved therapy for 2L ES–SCLC that demonstrated survival benefit compared to previously available treatments in patients with treated, stable brain metastases and untreated, asymptomatic brain metastases. The applicant stated that both the Phase 2 and 3 studies evaluating the efficacy and safety of IMDELLTRA® included patients with treated, stable brain metastases and untreated, asymptomatic brain metastases. The applicant further stated that while lur udies evaluating the efficacy and safety of IMDELLTRA® included patients with treated, stable brain metastases and untreated, asymptomatic brain metastases. The applicant further stated that while lurbinectedin and topotecan are also approved for 2L therapy in ES–SCLC patients, they were not extensively studied in patients with treated, stable brain metastases; therefore, the applicant stated that it could not provide ORR data for this specific patient population. For lurbinectedin, the applicant stated that patients with brain metastases were excluded from the pivotal trial. Per the applicant, while some studies have been conducted on topotecan and SCLC patients with brain metastases, low response rates were observed. The applicant stated that in a Phase 2 trial, only 2 out of 19 (10.5 percent) SCLC patients with brain metastases responded to topotecan, which did not meet the minimum response requested for study continuation. The applicant stated that, likewise, topotecan and lurbinectedin do not have registrational trial data in 3L+ ES–SCLC patients while IMDELLTRA® does. Per the applicant, while ORR data for topotecan and lurbinectedin as 3L therapy were not available in the res tedin do not have registrational trial data in 3L+ ES–SCLC patients while IMDELLTRA® does. Per the applicant, while ORR data for topotecan and lurbinectedin as 3L therapy were not available in the respective registrational trials, it did provide real- world evidence of these previously available treatments being used as 3L therapy. In response to CMS’s concern that, among the clinical trial and real-world data provided there was no control for confounding variables to ensure similar patients were being compared, the VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00191 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36726 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations . The applicant stated applicant stated that in addition to the clinical literature provided in its application regarding outcomes of currently available treatment, the new evidence from the ITC analysis and DeLLphi-304 addresses this concern and further supports the applicant’s claims of substantial clinical improvement for IMDELLTRA® that, for example, the ITC analysis from Tapan et al. (2025) controll DeLLphi-304 addresses this concern and further supports the applicant’s claims of substantial clinical improvement for IMDELLTRA® that, for example, the ITC analysis from Tapan et al. (2025) controlled for potential confounding factors by selecting controls based on key DeLLphi-301 inclusion/exclusion criteria and employing propensity score matching. In addition, the applicant stated that the E-value, which measures the likelihood of unmeasured confounding to bias in the ITC estimates, showed that the likelihood of bias is low in the analysis by Tapan et al. (2025). In response to CMS’s concern that exclusion of patients with brain metastases from the pivotal Phase 2 trial for lurbinectedin does not exclude use of this drug in this patient population, the applicant stated that, while registrational trial data is lacking to support its use in this specific patient population, Desai et al. (2023) evaluated the safety and efficacy of lurbinectedin in a real-world setting, focusing on its use as a 2L+ treatment in SCLC patients. The applicant reiterated findings from the Desai et al. (2023) study provided in its original application to further support its statement. In response to CMS use as a 2L+ treatment in SCLC patients. The applicant reiterated findings from the Desai et al. (2023) study provided in its original application to further support its statement. In response to CMS’s question about the use of the von Pawel et al. (1999) study of topotecan as a comparator to IMDELLTRA® since it was conducted approximately 25 years before the IMDELLTRA® Phase 2 trial (Ahn et al., 2023), and guidelines and treatment protocols for SCLC have evolved and it included some highly varied patient outcomes, the applicant stated, given the long time periods between treatment advances in this difficult to treat cancer, it provided in its application more recent real-world evidence on previously approved treatments for 2L ES–SCLC. The applicant also reiterated that it provided an ITC analysis and new data from the DeLLphi-304 randomized controlled Phase 3 trial comparing IMDELLTRA® care chemotherapy, including topotecan, that demonstrate IMDELLTRA® provides a substantial clinical improvement compared to previously available treatments using more contemporary data than the historical literature on these treatments. In response to CMS’s concern that while clinical trials of top improvement compared to previously available treatments using more contemporary data than the historical literature on these treatments. In response to CMS’s concern that while clinical trials of topotecan and lurbinectedin reported higher rates of ≥ Grade 3 neutropenia, they did not to standard of consider other serious adverse events such as CRS or ICANS, the applicant stated that, IMDELLTRA® has a positive benefit:risk safety profile and a low incidence of treatment-related neutropenia. The applicant stated this is further confirmed in the randomized controlled DeLLphi-304 trial, where IMDELLTRA® demonstrated a more favorable toxicity profile than standard chemotherapy, with chemotherapy associated with more frequent and higher-grade adverse events. Per the applicant, in DeLLphi-304, Grade ≥3 TRAEs were significantly lower in the IMDELLTRA® group (27 percent) compared to the chemotherapy group (62 percent). The applicant additionally stated that TRAEs led to dose interruption and/or reduction in 19 percent of patients receiving IMDELLTRA® versus 55 percent in the chemotherapy group, and to discontinuation in 3 percent and 6 percent of patients, respectively. , The applicant fur r reduction in 19 percent of patients receiving IMDELLTRA® versus 55 percent in the chemotherapy group, and to discontinuation in 3 percent and 6 percent of patients, respectively. , The applicant further stated that the most common TRAEs across both the Phase 2 and Phase 3 trial was CRS, which was mild and generally manageable with antipyretics, IV fluids and steroids with ≤ 1 percent of patients experiencing CRS ≥ Grade 3. Per the applicant, consistent with this established safety profile, in the randomized controlled DeLLphi-304 trial, CRS and ICANS were observed in 56 percent of patients and 6 percent of patients treated with IMDELLTRA® respectively, and were mostly Grade 1– 2. The applicant stated that in the IMDELLTRA® group only one percent of patients experienced a Grade 3 CRS event and CRS rarely led to treatment interruption (1.6 percent) or discontinuation (0.4 percent). The applicant also stated that all ICANS events were Grade 1 or 2 in severity except for one Grade 5 event and rarely led to treatment interruption (0.8 percent) or discontinuation (0.4 percent). The applicant stated that in DeLLphi-304, CRS and ICANS were mostly Grade 1 or 2 in severity and generally ma t and rarely led to treatment interruption (0.8 percent) or discontinuation (0.4 percent). The applicant stated that in DeLLphi-304, CRS and ICANS were mostly Grade 1 or 2 in severity and generally manageable for patients treated with IMDELLTRA® . Per the applicant, overall, the IMDELLTRA® group reported a 27 percent rate of TRAEs with Grade 3 or higher events while the chemotherapy group reported a 62 percent rate. In addition, the applicant stated that TRAEs led to dose interruption and/or dose reduction in 19 percent of patients in the IMDELLTRA® group and in 55 percent of those in the chemotherapy group, and to discontinuation in 3 percent and 6 percent of patients, respectively. In response to CMS’s concern that there was no control for potential . The confounding variables in the patient populations in the comparisons of neutropenia rates, the applicant stated that while the historical comparisons are informative, the new evidence from the randomized controlled DeLLphi-304 trial provide confirmation that rates of neutropenia are higher for chemotherapy than IMDELLTRA® applicant further stated that in the DeLLphi-304 trial, IMDELLTRA® had a four percent rate of Grade 3 or high provide confirmation that rates of neutropenia are higher for chemotherapy than IMDELLTRA® applicant further stated that in the DeLLphi-304 trial, IMDELLTRA® had a four percent rate of Grade 3 or higher neutropenia and a two percent rate of any grade febrile neutropenia. The applicant stated that, in comparison, the chemotherapy group had a rate of 22 percent along with an 11 percent rate of any grade febrile neutropenia. The applicant also stated that, given 2L+ ES– SCLC patients have been exposed to repeated chemotherapy with cumulative toxicities, the lower incidence of neutropenia is notable as this TRAE is known to delay or prevent cancer patients from initiating treatment. Per the applicant, the randomized controlled DeLLphi-304 trial demonstrates a favorable toxicity profile for IMDELLTRA® compared to chemotherapy, with chemotherapy resulting in more frequent and high- grade adverse events. The applicant stated its belief that the safety data included in its application as well as the confirming DeLLphi-304 safety data support that IMDELLTRA® represents a substantial clinical improvement in the Medicare population. The applicant stated that it is clear that IMDELLTRA® substa as the confirming DeLLphi-304 safety data support that IMDELLTRA® represents a substantial clinical improvement in the Medicare population. The applicant stated that it is clear that IMDELLTRA® substantially improves clinical outcomes relative to previously available treatment and, therefore, meets the substantial clinical improvement criterion. Additionally, the applicant reiterated treats a patient that IMDELLTRA® population unresponsive to previously available technologies and provided responses to CMS concerns about this assertion from the proposed rule. In response to CMS’s concern about whether ES–SCLC patients are unresponsive or ineligible for existing 2L+ treatments, such as lurbinectedin and topotecan, and that having limited treatment options does not demonstrate that patients are unresponsive or ineligible for any available therapies, the applicant stated that, while topotecan and lurbinectedin may have some response in relapsed SCLC, it is short-lived and modest at best. The applicant further stated that for the subpopulation of relapsed SCLC patients that have poor prognostic factors, such as brain metastases and platinum-resistance, this short-lived response is even he applicant further stated that for the subpopulation of relapsed SCLC patients that have poor prognostic factors, such as brain metastases and platinum-resistance, this short-lived response is even more pronounced. The VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00192 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36727 applicant stated, for example, in the pivotal Phase 2 study for lurbinectedin, platinum-resistant patients had a low response rate of 22 percent and a DOR of 4.7 months. Thus, the applicant stated that the poor response supports that patients are largely unresponsive to available treatments. The applicant also stated that in the Phase 3 DeLLphi-304 trial, the median DOR was 6.9 months with IMDELLTRA® versus 5.5 months with chemotherapy. Per the applicant, given that IMDELLTRA® has shown significantly better and longer response, it is evident that IMDELLTRA® patient population unresponsive to previously available technology. treats a Furthermore, the applicant stated that for ES–SCLC patients with br tter and longer response, it is evident that IMDELLTRA® patient population unresponsive to previously available technology. treats a Furthermore, the applicant stated that for ES–SCLC patients with brain metastases, IMDELLTRA® is the only FDA-approved therapy for 2L that has been studied in ES–SCLC patients with treated, stable brain metastases and untreated, asymptomatic brain metastases. Per the applicant, while lurbinectedin and topotecan are also approved as 2L ES–SCLC therapies, they were not extensively studied in patients with treated, stable brain metastases. The applicant reiterated that in the case of lurbinectedin, patients with brain metastases were excluded from the pivotal trial, and in addition, lurbinectedin failed to reach its primary endpoint of OS in the confirmatory Phase 3 ATLANTIS trial. The applicant further stated that, while a Phase 2 study has been conducted on topotecan and SCLC patients with brain metastases, low response rates were observed. The applicant stated new evidence from the Phase 3 randomized controlled DeLLphi-304 study demonstrates the IMDELLTRA® -treated group of SCLC patients with treated, stable brain metastases had similar safety and eff tated new evidence from the Phase 3 randomized controlled DeLLphi-304 study demonstrates the IMDELLTRA® -treated group of SCLC patients with treated, stable brain metastases had similar safety and efficacy outcomes as those patients without brain metastases. Further, the applicant stated that the OS benefit with IMDELLTRA® versus chemotherapy was consistent across prespecified patient subgroups, including the 44 percent of patients with brain metastases who received IMDELLTRA® (asymptomatic, untreated or treated) (HR, 0.45; 95% CI 0.31–0.65). The applicant stated that, although other existing FDA approved treatments for ES–SCLC may be prescribed in the real world for SCLC patients with brain metastases, these existing treatments do not have a randomized controlled Phase 3 trial demonstrating efficacy over the current standard of care. The applicant stated that IMDELLTRA® has demonstrated improved survival outcomes for ES–SCLC patients with or without brain metastases who have progressed after initial platinum-based chemotherapy, a patient population that is effectively unresponsive to existing treatment as demonstrated by low response rates. Response: We thank the applicant for its d after initial platinum-based chemotherapy, a patient population that is effectively unresponsive to existing treatment as demonstrated by low response rates. Response: We thank the applicant for its comments regarding the substantial clinical improvement criterion. Based on the additional information received, we agree with the applicant that IMDELLTRATM represents a substantial clinical improvement over existing technologies because it significantly improves OS and PFS with lower rates of Grade 3 or higher TRAEs, including neutropenia, compared to existing treatment options for 2L+ ES–SCLC patients. After consideration of the public comments we received and the information included in the applicant’s new technology add-on payment application, we have determined that IMDELLTRA® meets the criteria for approval for new technology add-on payment. Therefore, we are approving new technology add-on payments for this technology for FY 2026. Cases involving the use of IMDELLTRA® that are eligible for new technology add-on payments will be identified by ICD–10– PCS codes XW033NA (Introduction of tarlatamab-dlle antineoplastic into peripheral vein, percutaneous approach, new technology gro gible for new technology add-on payments will be identified by ICD–10– PCS codes XW033NA (Introduction of tarlatamab-dlle antineoplastic into peripheral vein, percutaneous approach, new technology group 10) or XW043NA (Introduction of tarlatamab-dlle antineoplastic into central vein, percutaneous approach, new technology group 10). is 1 mg and for Medicare patients is In its application, the applicant stated that the cost of IMDELLTRA® is $1,500 for a 1 mg dose and $15,000 for a 10 mg dose. According to the applicant, the first dose of IMDELLTRA® all subsequent doses are 10 mg. In its application, the applicant estimated that the weighted average dose of IMDELLTRA® 7.3 mg based on about 70 percent of inpatient Medicare administrations being for a 10 mg dose and 30 percent of inpatient Medicare administrations being for a 1 mg dose. Therefore, the average cost per patient for IMDELLTRA® is $10,950 ($1,500 per mg * 7.3 mg). Under § 412.88(a)(2), we limit new technology add-on payments to the lesser of 65 percent of the average cost of the technology, or 65 percent of the costs in excess of the MS–DRG payment for the case. As a result, the maximum new technology add-on payment for a c the lesser of 65 percent of the average cost of the technology, or 65 percent of the costs in excess of the MS–DRG payment for the case. As a result, the maximum new technology add-on payment for a case involving the use of IMDELLTRA® is $7,117.50 for FY 2026. h. IntelliSep® Test Cytovale, Inc. submitted an application for new technology add-on payments for the IntelliSep® Test for FY 2026. According to the applicant, the IntelliSep® Test is a semi-quantitative test that assesses cellular host response via a microfluidic deformability cytometry of leukocyte biophysical properties and is intended for use in conjunction with clinical assessments and laboratory findings to aid in the early detection of sepsis with organ dysfunction for adults presenting to the Emergency Department (ED). The IntelliSep® Test generates an index value that falls within 1 of 3 discrete interpretation bands based on the probability of sepsis with organ dysfunction manifesting within the first 3 days after testing. Please refer to the online application posting for the IntelliSep® Test, available at https://mearis.cms.gov/ public/publications/ntap/ NTP24100553685, for additional detail describing the techn ting. Please refer to the online application posting for the IntelliSep® Test, available at https://mearis.cms.gov/ public/publications/ntap/ NTP24100553685, for additional detail describing the technology and the disease diagnosed in part by the technology. With respect to the newness criterion, according to the applicant, the IntelliSep® Test was granted 510(k) clearance from FDA on December 20, 2022, for use in adult patients with signs and symptoms of infection who present to the ED. According to the applicant, the IntelliSep® Test was commercially available immediately after FDA marketing authorization. The applicant stated that one IntelliSep® Test is used per patient per inpatient stay. The applicant stated that, effective April 1, 2025, the following ICD–10– PCS procedure code may be used to uniquely describe procedures involving the use of the IntelliSep® Test: XXE5X5A (Measurement of immune response, whole blood cellular assessment via microfluidic deformability, new technology group 10). The applicant provided a list of diagnosis codes that may be used to currently identify the indication for the IntelliSep® Test using the ICD–10–CM coding system. Please refer to the onl gy group 10). The applicant provided a list of diagnosis codes that may be used to currently identify the indication for the IntelliSep® Test using the ICD–10–CM coding system. Please refer to the online application posting for the complete list of ICD–10–CM codes provided by the applicant. As previously discussed, if a technology meets all three of the substantial similarity criteria under the newness criterion, it would be considered substantially similar to an existing technology and would not be considered ‘‘new’’ for the purpose of new technology add-on payments. With respect to the substantial similarity criteria, the applicant asserted that the IntelliSep® Test is not substantially similar to other currently available technologies because the IntelliSep® Test is the only FDA-cleared VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00193 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36728 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations test that uses a microfluidic deformability cytometry technique for early detection of sepsis in the ED regardless of whether th ter / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations test that uses a microfluidic deformability cytometry technique for early detection of sepsis in the ED regardless of whether the patient is admitted to the hospital or not and that therefore, the technology meets the newness criterion. The following table summarizes the applicant’s assertions regarding the substantial similarity criteria. Please see the online application posting for the IntelliSep® Test for the applicant’s complete statements in support of its assertion that the IntelliSep® Test is not substantially similar to other currently available technologies. In the FY 2026 IPPS/LTCH PPS proposed rule (90 FR 18129 through 18130), we noted the following concerns regarding the substantial similarity criteria. We noted that the applicant did not compare the IntelliSep® Test’s mechanism of action to those of other sepsis tests or detection tools, such as the Early Sepsis Indicator for monocyte distribution width (MDW), SeptiCyte® RAPID, and Sepsis ImmunoScoreTM. We further noted that MDW measurement involves the assessment of white blood cells to detect pathogen-induced infections. Specifically, MDW measur th (MDW), SeptiCyte® RAPID, and Sepsis ImmunoScoreTM. We further noted that MDW measurement involves the assessment of white blood cells to detect pathogen-induced infections. Specifically, MDW measures the variability in peripheral monocyte morphologic characteristics that increase during early phases of infection after pathogen-induced monocyte activation.86 Notably, monocytes (measured for MDW) are one type of leukocyte, and the IntelliSep® Test also evaluates leukocytes in its mechanism of action.87 While the techniques of 86 Malinovska, A., Hernried, B., Lin, A., Badaki- Makun, O., Fenstermacher, K., Ervin, A.M., Ehrhardt, S., Levin, S., & Hinson, J.S. (2023). Monocyte Distribution Width as a Diagnostic Marker for Infection: A Systematic Review and Meta-analysis. Chest, 164(1), 101–113. https:// doi.org/10.1016/j.chest.2022.12.049. 87 U.S. Food and Drug Administration. (2022). 510(k) approval letter for IntelliSep Test, 21 CFR 866.3215, device to detect and measure non- microbial analyte(s) in human clinical specimens to aid in assessment of patients with suspected sepsis. leukocyte measurement may differ, we stated that the subject of measurement appears to be the same or sim analyte(s) in human clinical specimens to aid in assessment of patients with suspected sepsis. leukocyte measurement may differ, we stated that the subject of measurement appears to be the same or similar. Therefore, we questioned whether the IntelliSep® Test’s measurement of leukocytes and their deformities is a unique mechanism of action, particularly in comparison to the Early Sepsis Indicator. Further, we questioned whether the measurement of different biomarkers or gene expression to determine the risk of sepsis is different than the measurement of leukocyte properties to determine the risk of sepsis. We stated we were interested in information regarding how the IntelliSep® Test’s mechanism of action differs from other such sepsis tests and detection tools. In addition, while the applicant stated that the use of the IntelliSep® Test does not involve treatment of the same or similar population and disease as existing technologies, we noted that the IntelliSep® Test is a diagnostic tool to evaluate patients with suspected infection, as are other FDA-cleared sepsis diagnostic tools, such as those that calculate Quick Sequential Organ Failure Assessment (qSOFA) scores (for example tool to evaluate patients with suspected infection, as are other FDA-cleared sepsis diagnostic tools, such as those that calculate Quick Sequential Organ Failure Assessment (qSOFA) scores (for example, SpassageQ 88 or NAVOY CDS® 89). We stated that furthermore, there are also other means of assessment, including body temperature, respiratory rate, heart rate, blood counts, and blood cultures, that are used to diagnosis sepsis. We also questioned whether a patient’s location, whether in the ED, admitted to the hospital, or in the intensive care unit (ICU) constitutes a different population. Further, we noted that there are existing sepsis diagnostic technologies that are also approved for use in the ED such as the Early Sepsis Indicator and Sepsis ImmunoScoreTM, which were FDA market-authorized on March 18, 2019 and April 2, 2024, respectively.90 91 Therefore, we stated it was unclear that there are no existing technologies other than the IntelliSep® Test that are involved with the diagnosis of sepsis in adult patients who have signs and symptoms of infection. We invited public comments on whether the IntelliSep® Test is substantially similar to existing technologies and whether the nosis of sepsis in adult patients who have signs and symptoms of infection. We invited public comments on whether the IntelliSep® Test is substantially similar to existing technologies and whether the IntelliSep® Test meets the newness criterion. 89 https://www.accessdata.fda.gov/cdrh_docs/ pdf24/K240558.pdf. https://www.accessdata.fda.gov/cdrh_docs/pdf22/ K220991.pdf. 88 https://www.accessdata.fda.gov/cdrh_docs/ 90 https://www.accessdata.fda.gov/scrIpts/cdrh/ cfdocs/cfpmn/pmn.cfm?id=K181599. 91 https://www.accessdata.fda.gov/cdrh_docs/ pdf23/K230386.pdf. pdf23/DEN230036.pdf. VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00194 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00195 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36730 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations with cultures drawn, and for Early Sepsis Indicator as adult patients presenting to the ED in whom a WBC differential was ordered. The applicant elaborated on implicati 4, 2025 / Rules and Regulations with cultures drawn, and for Early Sepsis Indicator as adult patients presenting to the ED in whom a WBC differential was ordered. The applicant elaborated on implications of differences between the IntelliSep® Test and the reported population for SeptiCyte® RAPID, adult patients with SIRS within the first day of ICU admission. The applicant stated that the suspected sepsis population that has been admitted to the ICU is significantly different than the population presenting to the ED, and therefore, the IntelliSep® Test does not involve treatment of the same or similar population and disease as existing technologies, such as SeptiCyte® RAPID. The applicant stated that previous studies found that 68 percent of the IntelliSep® Test tested population were admitted to the hospital and 16.1 percent were admitted to the ICU. The applicant asserted that these findings indicate that providers judged only a small portion of those tested with the IntelliSep® Test severe enough to warrant an ICU level of care. The applicant stated that identifying sepsis early in the ED when symptoms are subtle is challenging, while diagnosing sepsis later when severe organ dy severe enough to warrant an ICU level of care. The applicant stated that identifying sepsis early in the ED when symptoms are subtle is challenging, while diagnosing sepsis later when severe organ dysfunction necessitates ICU care is easier. The applicant concluded the value of a test, like the IntelliSep® Test, that can provide an accurate indicator of sepsis in an ED population, is much greater because the opportunity to intervene with effective care is greater. Response: We thank the applicant and commenter for their comments. Based on our review of comments received and information submitted by the applicant as part of its FY 2026 new technology add-on payment application for the IntelliSep® Test, we agree with the applicant that the IntelliSep® Test uses a unique mechanism of action for early sepsis detection because it is the only FDA-approved test that directly assesses immune dysregulation by quantifying the changes in cell compliance for WBCs to aid in the early detection of sepsis with organ dysfunction. Therefore, we agree with the applicant that the IntelliSep® Test is not substantially similar to existing treatment options and meets the newness criterion. We consider sepsis with organ dysfunction. Therefore, we agree with the applicant that the IntelliSep® Test is not substantially similar to existing treatment options and meets the newness criterion. We consider the beginning of the newness period to commence on December 20, 2022, the date on which the IntelliSep® Test received FDA market authorization for use with adult patients with signs and symptoms of infection who present to the ED. With respect to the cost criterion, the applicant provided an analysis to demonstrate that the IntelliSep® Test meets the cost criterion. The analysis followed the order of operations summarized in the following table. Because the final inflated average case-weighted standardized charge per case exceeded the average case- weighted threshold amount, the applicant asserted that the IntelliSep® Test meets the cost criterion. We invited public comments on whether the IntelliSep® Test meets the cost criterion. Comment: The applicant reiterated that the cost criterion analysis submitted with the application demonstrate that the IntelliSep® Test meets the cost criterion. Response: We thank the applicant for its comment. We agree that the final inflated average case- analysis submitted with the application demonstrate that the IntelliSep® Test meets the cost criterion. Response: We thank the applicant for its comment. We agree that the final inflated average case-weighted standardized charge per case exceeded the average case-weighted threshold amount. Therefore, the IntelliSep® Test meets the cost criterion. With regard to the substantial clinical improvement criterion, the applicant asserted that the IntelliSep® Test represents a substantial clinical improvement over existing technologies because the IntelliSep® Test is the only technology that is FDA-cleared for use in the ED to rapidly assess immune activation and identify sepsis risk in approximately 10 minutes, providing actionable results that significantly impact clinical decision-making and patient outcomes. The applicant provided 9 studies to support these claims,92 as well as 19 background articles about international sepsis guidelines, antimicrobial therapy initiation, timing of antibiotic administration, and other topics related to sepsis detection. We noted that two other articles were submitted as supporting evidence (Kraus et al., 2023; Rhee et al., 2017), which we stated we bel tic administration, and other topics related to sepsis detection. We noted that two other articles were submitted as supporting evidence (Kraus et al., 2023; Rhee et al., 2017), which we stated we believed should be characterized as background articles because they do not directly assess the use of the IntelliSep® 92 One of these studies (Sheybani et al., 2024) is a published abstract that was retracted. VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00196 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00197 Fmt 4701 Sfmt 4725 E:\FR\FM\04AUR2.SGM 04AUR2 / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00198 Fmt 4701 Sfmt 4725 E:\FR\FM\04AUR2.SGM 04AUR2 / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00199 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k / > H P G 20: LR 0.265) with 100 percent of patients classified, meaning it still 94 Hassan, M., Tuckman, H. P., Patrick, R. H., Kountz, D. S., & Kohn, J. L. (2010). Hospital length of stay and probability of acqui LR 0.265) with 100 percent of patients classified, meaning it still 94 Hassan, M., Tuckman, H. P., Patrick, R. H., Kountz, D. S., & Kohn, J. L. (2010). Hospital length of stay and probability of acquiring infection. International Journal of Pharmaceutical and Healthcare Marketing, 4(4), 324–338. https:// doi.org/10.1108/17506121011095182. VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00200 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36735 reports when the IntelliSep® Test cannot. According to the commenter, MDW results are available in roughly 2 minutes, widely deployed as part of complete blood counts, and reimbursed at $4.48, unlike the dedicated IntelliSep® Test instrument. The commenter added that the IntelliSep® Test’s utility claims hinge on abstracts and single-center slide decks from the site that co-developed the test. The commenter stated that the applicant for the IntelliSep® Test did not offer peer- reviewed publications with robust outcome benefits and that unpublished data from one institution does not he test. The commenter stated that the applicant for the IntelliSep® Test did not offer peer- reviewed publications with robust outcome benefits and that unpublished data from one institution does not establish utility. The commenter stated that MDW, in contrast, has a substantial, peer-reviewed record of both clinical validity and real-world benefit, whereas the IntelliSep® Test shows similar or poorer analytic performance, lacks peer- reviewed utility data, and requires proprietary hardware at higher cost. The commenter, therefore, recommended that the IntelliSep® Test’s new technology add-on payment application be denied. Response: We thank the commenters for their input and have taken it into consideration in determining whether IntelliSep® meets the substantial clinical improvement criterion, discussed later in this section. Comment: The applicant submitted a public comment regarding the substantial clinical improvement criterion and provided responses to CMS’s concerns from the proposed rule. The applicant included a recently published paper by Thomas et al. (2025),95 which the applicant asserted further demonstrates how the IntelliSep® Test provides a substantial clinical im roposed rule. The applicant included a recently published paper by Thomas et al. (2025),95 which the applicant asserted further demonstrates how the IntelliSep® Test provides a substantial clinical improvement in detecting and diagnosing sepsis compared to all other available tests. The applicant explained the article discusses a sepsis quality improvement initiative at a large academic medical center with a high- volume ED that incorporated the IntelliSep® Test into its protocol, enabling rapid diagnostic support for patients flagged by an electronic health record-based alert. The applicant asserted that, per the authors, over the course of 1 year, implementation of the IntelliSep® Test significantly reduced mortality, hospital LOS, and blood culture utilization, demonstrating improved patient outcomes and resource efficiency compared to the pre- 95 Thomas, C. B., Wyler, B., D’Antonio, C. M., Laperouse, M., Alwood, S., Richard, K., Grantham, A., Sheybani, R., Sorrells, M. G., Tan, W.-J., Teague, J. W., O’Neal, H., & Jagneaux, T. (2025). Impact of a Sepsis Quality Improvement Initiative on Clinical and Operational Outcomes. Healthcare, 13, 1273. https://doi.org/10.3390/healthcare13 J., Teague, J. W., O’Neal, H., & Jagneaux, T. (2025). Impact of a Sepsis Quality Improvement Initiative on Clinical and Operational Outcomes. Healthcare, 13, 1273. https://doi.org/10.3390/healthcare13111273. implementation period. The applicant further stated that while the study does not have the rigor of some other study designs, it overcomes limitations related to a control population by leveraging protocolized screening, which defines a broad, consistent, and pre-specified analysis group including more than 12,000 diverse patients (median age: 66 years) with no inclusion or exclusion criteria. In addition, the applicant asserted that the article shows that the use of the IntelliSep® Test in an ED triage process enabled the care delivery in a way that was superior to the standard of care in a large population of patients. The applicant also asserted that the article provides additional documentation regarding multiple concerns that CMS stated in the proposed rule, including those related to reductions in hospital LOS, blood culture utilization, and mortality. First, the applicant stated that it addressed CMS’s concerns regarding the Thomas et al. (2024b) study, including the imp lated to reductions in hospital LOS, blood culture utilization, and mortality. First, the applicant stated that it addressed CMS’s concerns regarding the Thomas et al. (2024b) study, including the impact from varying confounders and several questions from CMS, specifically providing additional documentation related to reductions in hospital length of stay, blood culture utilization, and mortality. The applicant stated that, in the Thomas et al. (2025) study, the IntelliSep® Test’s implementation resulted in a reduction in hospital LOS for sepsis patients of 0.64 days (9.5 percent) for the full cohort and 0.76 days (11.3 percent) for the temporally matched cohort. The applicant stated that this reduction meets the standard provided in 42 CFR 412.87(b), which states: A more rapid beneficial resolution of the disease process treatment including, but not limited to, a reduced length of stay or recovery time. Second, the applicant asserted that the Thomas et al. (2025) study addresses the IntelliSep® Test’s ability to reduce diagnostic exposure, because the study showed application of the IntelliSep® Test resulted in a relative reduction in blood culture utilization, from usage in 50.8 ntelliSep® Test’s ability to reduce diagnostic exposure, because the study showed application of the IntelliSep® Test resulted in a relative reduction in blood culture utilization, from usage in 50.8 to 45.7 percent of patients. The applicant stated that this reduction in cultures meets the standard in 42 CFR 412.87(b) which describes a decreased rate of at least one subsequent diagnostic or therapeutic intervention. In addition, the applicant stated that the Thomas et al. (2025) study demonstrates that, in the temporally matched cohort, application of the IntelliSep® Test produced an absolute reduction in sepsis mortality risk by 4.2 percent (from 10.7 percent to 6.5 percent). The applicant added that this reduction is a significant improvement over the standard of care, which included SIRS symptoms, lactate measurement, and the use of cultures, that no other sepsis test has demonstrated. In response to CMS’s concern that its application lacked a comparison of the IntelliSep® Test to existing technologies used to diagnose sepsis, the applicant stated that the Sepsis ImmunoScoreTM, SeptiCyte® RAPID, and the Early Sepsis Indicator are not in widespread use, preventing comparative da existing technologies used to diagnose sepsis, the applicant stated that the Sepsis ImmunoScoreTM, SeptiCyte® RAPID, and the Early Sepsis Indicator are not in widespread use, preventing comparative data between these sepsis diagnostic tests and the IntelliSep® Test. The applicant further stated that a 2024 New England Journal of Medicine review article confirmed that no sepsis test is in widespread use. The applicant asserted that, as such, there is no practical way to construct a comparison in sepsis diagnostic tests. The applicant additionally asserted that no other technology has conducted a comparative study documenting improvements in hospital LOS, blood culture utilization, and mortality risk relative to the standard of care as the Thomas et al. (2025) study provides. In response to CMS’s concern that the IntelliSep® Test application did not address its ability to diagnose a patient population where sepsis is currently undetectable or the ability to diagnose sepsis earlier than other technologies, the applicant stated that other sepsis diagnostic tests, including SIRS symptoms, lactate, and blood cultures, assess the symptoms or effects of sepsis, rather than sepsis’s immune ther technologies, the applicant stated that other sepsis diagnostic tests, including SIRS symptoms, lactate, and blood cultures, assess the symptoms or effects of sepsis, rather than sepsis’s immune dysregulation, and are therefore insufficient. The applicant asserted that the IntelliSep® Test provides the novel capability to assess immune activation, which can allow for a sepsis diagnosis based on underlying cell physiology. The applicant further stated that the IntelliSep® Test shows superior performance in sepsis diagnosis (as adjudicated by a physician panel) against the current sepsis detection standards of care for sepsis detection. Regarding the IntelliSep® Test’s ability to diagnose sepsis earlier than other technologies, the applicant stated that the IntelliSep® Test’s turnaround time is comparable to some other sepsis tests, such as MDW and the Sepsis ImmunoScoreTM. The applicant asserted that the IntelliSep® Test’s ability to rapidly assess immune dysregulation allows it to identify sepsis across the range of the disease’s progression continuum based on ED presentation, where patients may present early in sepsis progression with limited symptoms. In addition, the applic identify sepsis across the range of the disease’s progression continuum based on ED presentation, where patients may present early in sepsis progression with limited symptoms. In addition, the applicant asserted that, as such, the IntelliSep® Test’s sensitivity allows it to identify sepsis patients at an earlier point in the disease’s course than other available VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00201 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36736 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations tests. The applicant stated that Sarani et al. (2024) showed that the IntelliSep® Test demonstrated improved sepsis detection capability relative to MDW. In response to CMS’s concerns about the Jagneaux et al. (2024) study, the applicant reiterated that the study showed that patients in the waiting room with a Band 3 score from the IntelliSep® Test were immediately put into an ED bed for treatment, which improved time to bed (TTB) relative to the overall mean. The applicant stated that this study did not document patient outcomes but added it demonstrated t tely put into an ED bed for treatment, which improved time to bed (TTB) relative to the overall mean. The applicant stated that this study did not document patient outcomes but added it demonstrated that patients with Band 3 scores had a 94 percent rate of infection and a 54 percent rate of sepsis based upon discharge, while patients with Band 1 scores had a 1.6 percent rate of sepsis. The applicant asserted that because the IntelliSep® Test results led to faster TTB for patients with Band 3 scores, the test resulted in faster treatment times for high-risk patients. The applicant also stated that while Jagneaux et al. (2024) did not document patient outcomes, Thomas et al. (2025) included these same patients and observed significant decreases in sepsis-associated mortality. The applicant further asserted that given the known association between care timeliness and mortality as well as the known waiting time decrease, it follows that some of the IntelliSep® Test’s documented mortality improvement is likely attributable to the advancement in sepsis care it enabled. The applicant concluded that the application of the IntelliSep® Test in clinical practice provides evidence for its subs mprovement is likely attributable to the advancement in sepsis care it enabled. The applicant concluded that the application of the IntelliSep® Test in clinical practice provides evidence for its substantial clinical improvement and the approval of its new technology add-on payment application. A commenter who employed the IntelliSep® Test at several facilities submitted a comment and an unpublished abstract to show how the test’s adoption impacted patient outcomes at the facilities. The commenter stated that it tracked patient discharge and return rates following the introduction of the IntelliSep® Test, and documented a significant increase (from 14 percent to 24.9 percent) in the patient discharge rate from EDs in the first 4 months following the IntelliSep® Test’s implementation. The commenter further stated that the EDs achieved this increase without an increase in the rate of patient returns. The commenter asserted that, taken together with other admission and clinical data, it observed a significant increase (26 days to 27 days) in the return-adjusted hospital free days experienced by patients. The commenter stated that the IntelliSep® Test adoption resulted in a significant bserved a significant increase (26 days to 27 days) in the return-adjusted hospital free days experienced by patients. The commenter stated that the IntelliSep® Test adoption resulted in a significant clinical impact for its patients. The commenter provided an abstract describing the impact of the IntelliSep® Test use in the ED within their submission. Response: We thank the applicant and other commenters for their comments regarding the substantial clinical improvement criterion. Based on the additional information received and all data received to date, we continue to have concerns as to whether the IntelliSep® Test represents a substantial clinical improvement over existing technologies. Specifically, we disagree with the applicant that the evidence provided is sufficient to establish that the IntelliSep® Test offers the ability to diagnose a medical condition in a patient population where the medical condition is currently undetectable or offers the ability to diagnose a medical condition earlier in a patient population than allowed by currently available methods. Additionally, it remains unclear that the IntelliSep® Test significantly improves clinical outcomes relative to ser ndition earlier in a patient population than allowed by currently available methods. Additionally, it remains unclear that the IntelliSep® Test significantly improves clinical outcomes relative to services or technologies previously available. Regarding the applicant’s assertion that the IntelliSep® Test provides a substantial clinical improvement in detecting and diagnosing sepsis compared to all other available tests, we note the recently published and submitted Thomas et al. (2025) study did not compare the IntelliSep® Test to other available sepsis diagnostic technologies, such as the Early Sepsis Indicator and Sepsis ImmunoScoreTM. Furthermore, the applicant stated that Sarani et al. (2024) showed that the IntelliSep® Test demonstrated improved sepsis detection capability relative to MDW. However, the Sarani et al. (2024) study was conducted in a single medical center with a small sample size (n = 44), and we therefore question the generalizability of the results. We maintain our concern that Sarani et al. (2024) does not compare the IntelliSep® Test and MDW with respect to the ability to diagnose sepsis earlier, and the study does not define a patient population where sepsis concern that Sarani et al. (2024) does not compare the IntelliSep® Test and MDW with respect to the ability to diagnose sepsis earlier, and the study does not define a patient population where sepsis is currently undetectable in which the IntelliSep® Test can detect sepsis. The applicant asserted that the O’Neal et al. (2024) study demonstrates that the IntelliSep® Test shows faster time to diagnosis against current standards of care including SIRS, lactate, and blood cultures. However, the applicant stated that the turnaround time of the IntelliSep® Test is comparable with that of MDW (that is, Early Sepsis Indicator) and Sepsis ImmunoScore,TM which both may also have the capability to provide a faster diagnosis of sepsis compared to SIRS, lactate, and blood cultures. Although the applicant stated that the Sepsis ImmunoScoreTM, SeptiCyte® RAPID, and the Early Sepsis Indicator are not in widespread use, the substantial clinical improvement criterion requires that a technology demonstrate its diagnostic ability relative to currently available methods or technology. The applicant also stated that the sensitivity of the IntelliSep® Test allows it to identify these patients at an earli te its diagnostic ability relative to currently available methods or technology. The applicant also stated that the sensitivity of the IntelliSep® Test allows it to identify these patients at an earlier point in the patient’s course of sepsis than other available tests, but the applicant did not provide evidence demonstrating sepsis identification earlier in the disease process than other diagnostic tools. In addition, the applicant cited the Jagneaux et al. (2024) study, stating that the test led to faster treatment for patients who were ultimately shown to have been at high risk, based on the rate of higher infection in the high risk band. We continue to be concerned that the Jagneaux, et al. (2024) study does not demonstrate how the IntelliSep® Test compares to other currently available diagnostic methods in TTB. Also, while the applicant concluded that because the patients from the Jagneaux, et al. (2024) study were included in the Thomas et al. (2025) patient cohort, some of the mortality improvement documented with the IntelliSep® Test in the Thomas et al. (2025) study is likely attributable to the advancement in sepsis care enabled by the IntelliSep® Test, neither the applic ortality improvement documented with the IntelliSep® Test in the Thomas et al. (2025) study is likely attributable to the advancement in sepsis care enabled by the IntelliSep® Test, neither the applicant nor the Jagneaux, et al. (2024) study identify or measure the asserted advancements. It is unclear if TTB resulted in changes in patient management, and if so what those changes were. Our concerns for evidence of differences in the management of patients remain. We also continue to be concerned with the lack of data comparing the IntelliSep® Test to other available sepsis diagnostics, or evidence of a patient population where sepsis is currently undetectable, in which the IntelliSep® Test can detect sepsis. We remain unclear how the IntelliSep® Test compares to other available sepsis diagnostic technology in detecting and diagnosing sepsis. Regarding the applicant’s assertion that the IntelliSep® Test significantly improves clinical outcomes relative to services or technologies previously available, we remain unclear how the IntelliSep® Test compares to other sepsis diagnostic technologies. While the applicant submitted the Thomas et al. (2025) study to show that the IntelliSep® Te sly available, we remain unclear how the IntelliSep® Test compares to other sepsis diagnostic technologies. While the applicant submitted the Thomas et al. (2025) study to show that the IntelliSep® Test demonstrated a significant reduction in mortality, LOS, and blood culture utilization, we remain concerned about the continued lack of VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00202 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36737 comparative data. We remain unclear how the IntelliSep® Test’s clinical outcomes compare to those of other existing sepsis detection tests. After consideration of all the information received from the applicant as well as the public comments, we are unable to determine that the IntelliSep® Test represents a substantial clinical improvement over existing technologies for the reasons discussed in the proposed rule and in this final rule, and therefore, we are not approving new technology add-on payments for the IntelliSep® Test for FY 2026. i. Neuroguard IEP® 3-in-1 Carotid Stent and Po sed in the proposed rule and in this final rule, and therefore, we are not approving new technology add-on payments for the IntelliSep® Test for FY 2026. i. Neuroguard IEP® 3-in-1 Carotid Stent and Post-Dilation Balloon System With Integrated Embolic Protection Contego Medical, Inc. submitted an application for new technology add-on payments for the Neuroguard IEP® 3-in- 1 Carotid Stent and Post-Dilation Balloon System with Integrated Embolic Protection (Neuroguard IEP® System) for FY 2026. According to the applicant, the Neuroguard IEP® System combines a carotid stent with an integrated 40 mm embolic protection filter and post-dilation balloon. Per the applicant, the Neuroguard IEP® System restores and maintains vessel patency while stabilizing plaque, and by capturing small emboli during critical phases, it reduces the risk of stroke during the procedure and helps prevent future stroke. Please refer to the online application posting for the Neuroguard IEP® System, available at https:// mearis.cms.gov/public/publications/ ntap/NTP241004CNKB9, for additional detail describing the technology and carotid artery disease. With respect to the newness criterion, according to the applican // mearis.cms.gov/public/publications/ ntap/NTP241004CNKB9, for additional detail describing the technology and carotid artery disease. With respect to the newness criterion, according to the applicant, the Neuroguard IEP® System was granted premarket approval (PMA) from FDA on October 11, 2024 for improving the carotid luminal diameter in subjects at high risk for adverse events from a carotid endarterectomy who require carotid revascularization and meet the criteria outlined: patients with symptomatic stenosis of the common or internal carotid artery with 50 percent as determined by angiography using North American Symptomatic Carotid Endarterectomy Trial (NASCET) methodology or patients with asymptomatic stenosis of the common or internal carotid artery with 80 percent as determined by angiography using NASCET methodology; and patients with reference vessel diameters 4.0 mm to 8.0 mm. The applicant and FDA approval letter stated that this technology is also indicated for post- dilation of the stent component with simultaneous capture and removal of embolic material. According to the applicant, the Neuroguard IEP® System is used in conjunction with an available primary distal emb ion of the stent component with simultaneous capture and removal of embolic material. According to the applicant, the Neuroguard IEP® System is used in conjunction with an available primary distal embolic protection device as described in the Instructions for Use. According to the applicant, the Neuroguard IEP® System was commercially available immediately after its FDA approval. Per the applicant, one Neuroguard IEP® System typically is used per inpatient stay. The applicant submitted a request for approval for unique ICD–10–PCS procedure codes for the Neuroguard IEP® System and was granted approval to use the following procedure codes effective October 1, 2025: X2AH34B (Right common carotid artery cerebral embolic filtration, single integrated distal filter, percutaneous approach, new technology group 11), X2AJ34B (Left common carotid artery cerebral embolic filtration, single integrated distal filter, percutaneous approach, new technology group 11), X2AK34B (Right internal carotid artery cerebral embolic filtration, single integrated distal filter, percutaneous approach, new technology group 11), and X2AL34B (Left internal carotid artery cerebral embolic filtration, single integ rtery cerebral embolic filtration, single integrated distal filter, percutaneous approach, new technology group 11), and X2AL34B (Left internal carotid artery cerebral embolic filtration, single integrated distal filter, percutaneous approach, new technology group 11). The applicant stated that codes I65.21 (Occlusion and stenosis of right carotid artery), I65.22 (Occlusion and stenosis of left carotid artery), I65.23 (Occlusion and stenosis of bilateral carotid arteries), or I65.29 (Occlusion and stenosis of unspecified carotid artery) may be used to currently identify the indication for the Neuroguard IEP® System under the ICD–10–CM coding system. As previously discussed, if a technology meets all three of the substantial similarity criteria under the newness criterion, it would be considered substantially similar to an existing technology and would not be considered ‘‘new’’ for the purpose of new technology add-on payments. With respect to the substantial similarity criteria, the applicant asserted that the Neuroguard IEP® System is not substantially similar to other currently available technologies because it is a first-in-class, novel device that uses a different mechanism of plicant asserted that the Neuroguard IEP® System is not substantially similar to other currently available technologies because it is a first-in-class, novel device that uses a different mechanism of action compared to existing technologies by integrating a stent with a 40 mm (3 to 4 times smaller than pores of traditional filters) embolic protection filter and a post-dilation balloon, aiming to streamline the procedure and increase the effectiveness of embolic protection during carotid stenting, and that no other similar device is currently available in the U.S., and therefore, the technology meets the newness criterion. The following table summarizes the applicant’s assertions regarding the substantial similarity criteria. Please see the online application posting for the Neuroguard IEP® System for the applicant’s complete statements in support of its assertion that the Neuroguard IEP® System is not substantially similar to other currently available technologies. 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00203 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 36738 Federal Register / Vol. 90, No. 14 D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00203 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 36738 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations In the FY 2026 IPPS/LTCH PPS proposed rule (90 FR 18135), we stated we had the following concerns with regard to the newness criterion. While the applicant asserted that the Neuroguard IEP® System is novel in that it uses a new mechanism of action because its 40 mm embolic protection filter has pores 3–4 times smaller than traditional filters used in CAS, we questioned whether this represents a new mechanism of action as both Neuroguard’s filter and existing filters use a porous membrane to capture and remove embolic material while performing angioplasty and stenting procedures in carotid arteries. We noted that the applicant asserted that this change in filter size may impact clinical outcomes, however, this is not relevant to mechanism of action. Furthermore, the Neuroguard IEP® System should always be used in conjunction with an available primary distal embolic protection device as described in the IFU,96 which suggests that its fil f action. Furthermore, the Neuroguard IEP® System should always be used in conjunction with an available primary distal embolic protection device as described in the IFU,96 which suggests that its filter would not impact the mechanism of action of the device. We also noted that there are other existing embolic protection filters used during CAS procedures that have the same 40- micron pore size, such as the Paladin® 96 Neuroguard IEP® 3-in-1 Carotid Stent, Post- Dilation Balloon System with Integrated Embolic Protection (https://www.accessdata.fda.gov/cdrh_ docs/pdf24/P240009A.pdf). Carotid Post-Dilation Balloon System with Integrated Embolic Protection (Paladin® System with IEP) from the same manufacturer, which received FDA 510(k) clearance on September 6, 2018.97 In addition, while the applicant asserted that the Neuroguard IEP® System has a new mechanism of action because it integrates a stent with an embolic protection filter that opens during stent deployment and balloon 97 FDA. Section 510(k) premarket notification. Paladin Carotid Post-Dilation Balloon System with Integrated Embolic Protection. K181128. September 6, 2018 (https://www.accessdata.fda.gov/scripts/ cdrh/cfdocs/ Section 510(k) premarket notification. Paladin Carotid Post-Dilation Balloon System with Integrated Embolic Protection. K181128. September 6, 2018 (https://www.accessdata.fda.gov/scripts/ cdrh/cfdocs/cfpmn/pmn.cfm?id=K181128, accessed 2/5/2025). VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00204 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00205 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36740 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations System’s mechanism of action. According to the applicant, because CMS recognized that EluviaTM’s long- term drug release profile constituted a unique mechanism of action although the device used paclitaxel like other peripheral drug-eluting stents, it asserted that CMS was stating that integrating a novel distinction to existing technology to address a critical treatment limitation such as sustained drug delivery constituted a novel mechanism of action. The applicant stated that similarly, the Neurog l distinction to existing technology to address a critical treatment limitation such as sustained drug delivery constituted a novel mechanism of action. The applicant stated that similarly, the Neuroguard IEP® System integrates a critical function that fundamentally alters treatment for carotid stenting because it uniquely addresses the lack of micro- embolic protection during stent deployment and post-dilation. In response to CMS’s question about whether the requirement that the Neuroguard IEP® System must always be used in conjunction with an available primary distal embolic protection device suggests that its filter would not impact the mechanism of action of the device, the applicant stated that this requirement does not diminish its novel mechanism of action, but rather underscores its innovative complementary approach to solving a critical clinical limitation in carotid stenting procedures. The applicant explained that the Neuroguard IEP® System offers complementary, not redundant, protection by pairing a standard filter that protects against large emboli (>100 microns) throughout the procedure with its integrated 40-micron pore filter, which captures microemboli during the h t, protection by pairing a standard filter that protects against large emboli (>100 microns) throughout the procedure with its integrated 40-micron pore filter, which captures microemboli during the highest-risk phases of the procedure. Per the applicant, traditional filters must maintain minimum pore sizes of 100 microns to avoid filter thrombosis during prolonged use throughout the carotid stenting procedure, but that approximately 69 percent to 90 percent of embolic particles released during carotid artery stenting procedures are less than 100 microns in size, and thus may reach the cerebral circulation despite the use of these large pore distal filters. The applicant stated that the Neuroguard IEP® System’s unique mechanism of action is not possible with other commercially available technologies, including first-generation embolic protection devices and FDA-approved dual-layer stents. The applicant asserted that the Neuroguard IEP® System’s clinical outcomes reflect a distinct function that cannot be explained by simply combining existing technologies. In response to CMS’s question about similarity to other existing embolic protection filters used during CAS procedures that hav tion that cannot be explained by simply combining existing technologies. In response to CMS’s question about similarity to other existing embolic protection filters used during CAS procedures that have the same 40- micron pore size, such as the Paladin® System with IEP from the same manufacturer, the applicant stated that the Neuroguard IEP® System fundamentally differs from the Paladin® System with IEP in mechanism of action and clinical utility, despite both featuring a 40-micron pore filter. The applicant explained that the key differences are related to procedural coverage and device integration, both of which set the two technologies apart and are critical for understanding why the Neuroguard IEP® System represents a novel therapeutic approach. In terms of procedural coverage differences, the applicant stated that the Paladin® System with IEP’s balloon is a separate balloon catheter with integrated embolic protection (without a stent) that can provide small-pore coverage only during balloon dilation before or after a traditional carotid stent placement. According to the applicant, the Paladin® System with IEP’s 2018 and 2022 510(k) clearances were limited to balloon angioplast ng balloon dilation before or after a traditional carotid stent placement. According to the applicant, the Paladin® System with IEP’s 2018 and 2022 510(k) clearances were limited to balloon angioplasty and post-dilation of a deployed self-expanding stent. Thus, per the applicant, the Paladin® System with IEP cannot be used with a stent during stent deployment, leaving patients unprotected during the high- risk stent deployment phase of the procedure. The applicant stated that the Neuroguard IEP® System’s integrated design, in contrast, provides 40-micron pore protection during both the stent deployment and post-dilation phases. In terms of device integration and impact, the applicant stated that the Paladin® System with IEP’s balloon must be used with separate stenting systems, which requires additional catheter exchanges and therefore increases embolic risk, whereas the Neuroguard IEP® System consists of a stent, balloon, and filter on a single platform, providing comprehensive protection and eliminating exchanges that increase the risk of microemboli. The applicant also stated that the Neuroguard IEP® System received FDA PMA approval as a novel device with no predicate, and that tion and eliminating exchanges that increase the risk of microemboli. The applicant also stated that the Neuroguard IEP® System received FDA PMA approval as a novel device with no predicate, and that its comprehensive integrated solution not only enhances protection but also improves procedural efficiency, which was validated by the more rigorous PMA process. The applicant also added that the Paladin® System with IEP’s balloon was not widely commercialized in the U.S., as company records show no to minimal sales from 2021 to 2024. Response: We appreciate the additional information from the applicant and commenters with respect to whether the Neuroguard IEP® System is substantially similar to existing technologies. However, we remain unclear that the Neuroguard IEP® System does not use the same or a similar mechanism of action as existing technologies. While the applicant and commenters describe differences between the Neuroguard IEP® System and other technologies that require a separate EPD, stent, and post-dilation balloon, we believe that the mechanisms of action for the Neuroguard IEP® System to perform individual tasks, like capturing debris, dilating a vessel, and expanding a e EPD, stent, and post-dilation balloon, we believe that the mechanisms of action for the Neuroguard IEP® System to perform individual tasks, like capturing debris, dilating a vessel, and expanding a stent against vessel walls, remain similar to that of existing EPDs, carotid stents, and post-dilation balloons. The applicant asserted that the Neuroguard IEP® System’s integrated design, which allows for simultaneous deployment, is absent in other technologies, and that this design in addition to the smaller pore size captures more microemboli. However, the amount of microembolic material captured between EPD types refers to how well each technology performs that task. Thus, the difference in pore size between the EPD of Neuroguard IEP® System and other EPDs, their differential capabilities in capturing microemboli, and the potential impact on clinical outcomes are related to performance differences rather than differences in mechanism of action. Similarly, while the applicant states that by capturing more microemboli, the Neuroguard IEP® System will likely protect patients from strokes post- procedure, this relates to the assessment of substantial clinical improvement rather than th t by capturing more microemboli, the Neuroguard IEP® System will likely protect patients from strokes post- procedure, this relates to the assessment of substantial clinical improvement rather than the newness criterion. We also note that while, according to the applicant, the Neuroguard IEP® System’s integrated design enables the EPD to be deployed during both the stenting and post-dilation phases, reducing the risks for thrombosis, this also relates to assessment of substantial clinical improvement rather than the newness criterion. In addition, while commenters described potential benefits in terms of the Neuroguard IEP® System’s closed-cell design, vessel conformability, potential applications for treating complex patients, ease of use, or improving workflow efficiency, these do not describe a new mechanism of action. Since the stent of the Neuroguard IEP® System expands the carotid luminal diameter by propping open a narrow blood vessel physically and providing structural support to the vessel walls, its mechanism of action is similar to that of existing carotid stents. By the same token, the mechanism of action by which existing EPDs and the EPD in the Neuroguard IEP® System to the vessel walls, its mechanism of action is similar to that of existing carotid stents. By the same token, the mechanism of action by which existing EPDs and the EPD in the Neuroguard IEP® System capture debris is fundamentally similar. Similarly, regarding the Paladin® VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00206 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36741 System with IEP, the mechanism of action by which the EPD of the Paladin® System with IEP captures and removes microemboli appears to be the same as that of the EPD of the Neuroguard IEP® System, as well as existing stents and EPDs. We note that we do not believe that the volume of sales is a relevant consideration for making the determination as to whether a product is considered ‘‘new’’ for the purposes of new technology add-on payments. Consistent with the statute and our implementing regulations, a technology is no longer considered ‘‘new’’ once it is more than 2 to 3 years old, and the costs of the procedures are considered to be included in with the statute and our implementing regulations, a technology is no longer considered ‘‘new’’ once it is more than 2 to 3 years old, and the costs of the procedures are considered to be included in the relative weights irrespective of how frequently the technology has been used in the Medicare population (89 FR 69126). With regard to the applicant’s comment about EluviaTM, we determined in the FY 2021 IPPS/LTCH PPS final rule that the EluviaTM Drug- Eluting Stent uses a unique mechanism of action because the sustained release of paclitaxel combats restenosis for 12 to 15 months as compared to other drug- coated balloons or drug-coated stents that deliver drug to the artery for about two months (85 FR 58649). We disagree with the applicant’s conclusions that our determination of a new mechanism of action for EluviaTM means that addressing a treatment limitation constitutes a new mechanism of action. We note that EluviaTM allowed for gradual degradation of the polymer to control the release of paclitaxel into the bloodstream, while stents that were commercially available before EluviaTM lacked any mechanism of sustained and controlled release of paclitaxel. Like all EPDs in the ma elease of paclitaxel into the bloodstream, while stents that were commercially available before EluviaTM lacked any mechanism of sustained and controlled release of paclitaxel. Like all EPDs in the market, the EPD of the Neuroguard IEP® System is designed with a filter basket that captures and traps microembolic materials. In this way, its mechanism of action is the same as that of existing EPDs. While existing EPDs are deployed alone and remain open during the entire procedure, and the EPD of the Neuroguard IEP® System is deployed selectively, they all use a basket-like component to catch microembolic materials. Similarly, despite the differences in the pore size of this basket-like component in the Neuroguard IEP® System and existing EPDs, they use the same method to stop microembolic materials from escaping into the bloodstream. Thus, the Neuroguard IEP® System’s mechanism of action is the same as that of existing technologies because the mechanism by which each of its components performs a specific task is the same as that of existing technologies. After consideration of the comments received, and for the reasons discussed, we believe that that the Neuroguard IEP® System uses a rforms a specific task is the same as that of existing technologies. After consideration of the comments received, and for the reasons discussed, we believe that that the Neuroguard IEP® System uses a similar mechanism of action as existing technologies by using a balloon to dilate blood vessels physically, using a stent to support the vessel wall and keep the vessels open, and using an EPD to capture embolic materials. Furthermore, as discussed previously, the Neuroguard IEP® System and existing technologies map to the same MS–DRGs and treat the same disease, carotid artery stenosis, in the same patient population as existing carotid stent technologies and EPDs. Accordingly, because the Neuroguard IEP® System meets all three of the substantial similarity criteria, we believe that the Neuroguard IEP® System is substantially similar to existing carotid artery stents. In accordance with our policy, because these technologies are substantially similar to each other, we use the earliest market availability date as the beginning of the newness period. Because carotid artery stents and EPDs have been on the market for many years, the 3-year anniversary for the Neuroguard IEP® System occu rket availability date as the beginning of the newness period. Because carotid artery stents and EPDs have been on the market for many years, the 3-year anniversary for the Neuroguard IEP® System occurred prior to FY 2026. Therefore, the Neuroguard IEP® System does not meet the newness criterion and is not eligible for new technology add- on payments for FY 2026. We note that we received public comments with regard to the cost and substantial clinical improvement criteria for this technology, but because we have determined that the technology does not meet the newness criterion and therefore is not eligible for approval for new technology add-on payments for FY 2026, we are not summarizing comments received or making a determination on those criteria in this final rule. j. RYSTIGGO® (Rozanolixizumab-Noli) UCB, Inc. submitted an application for new technology add-on payments for RYSTIGGO® for FY 2026. According to the applicant, RYSTIGGO® is a neonatal Fc receptor (FcRn) blocker indicated for the treatment of generalized myasthenia gravis (gMG) in adult patients who are anti-acetylcholine receptor (AChR) or anti-muscle-specific tyrosine kinase (MuSK) antibody positive (ab+). The app ed for the treatment of generalized myasthenia gravis (gMG) in adult patients who are anti-acetylcholine receptor (AChR) or anti-muscle-specific tyrosine kinase (MuSK) antibody positive (ab+). The applicant stated that gMG is a rare chronic autoimmune disorder in which antibodies destroy the communication between nerves and muscle, resulting in weakness of the skeletal muscles, particularly the eyes, mouth, throat, and limbs. Per the applicant, some gMG patients have MuSK ab+, a subtype of gMG that may lead to more severe symptoms and limited treatment options. Please refer to the online application , available at posting for RYSTIGGO® https://mearis.cms.gov/public/ publications/ntap/NTP2410073H0PQ, for additional detail describing the technology and the disease treated by the technology. With respect to the newness criterion, according to the applicant, RYSTIGGO® was granted BLA approval from FDA on June 26, 2023, for the treatment of gMG in adult patients who are AChR ab+ or MuSK ab+. According to the applicant, RYSTIGGO® was not available for sale until July 20, 2023, the date on which the product was released from U.S. Customs after being shipped from an overseas manufacturing . According to the applicant, RYSTIGGO® was not available for sale until July 20, 2023, the date on which the product was released from U.S. Customs after being shipped from an overseas manufacturing facility. Per the applicant, RYSTIGGO® is administered as a subcutaneous infusion once each week for 6 weeks. Per the applicant, RYSTIGGO® is available in single-dose vials that contain 280 mg, 420 mg, 560 mg, or 840 mg of RYSTIGGO® at a concentration of 140 mg/mL. The applicant noted it used the following equation to calculate the weighted average cost per inpatient stay: [(percent of patients whose weight aligns to the 3mL vial × cost of the 3mL vial) + (percent of patients whose weight aligns to the 4mL vial × cost of the 4mL vial) + (percent of patients whose weight aligns to the 6mL vial × cost of the 6mL vial/100%] × 2 doses. The applicant stated that the typical inpatient stay for patients with gMG is 11 to 13 days, and thus, 2 doses would usually be administered during a typical inpatient stay. The applicant submitted a request for approval for a unique ICD–10–PCS procedure code for RYSTIGGO® and was granted approval to use the following procedure code effective October 1, 2025 patient stay. The applicant submitted a request for approval for a unique ICD–10–PCS procedure code for RYSTIGGO® and was granted approval to use the following procedure code effective October 1, 2025: XW013TB (Introduction of rozanolixizumab-noli monoclonal antibody into subcutaneous tissue, percutaneous approach, new technology group 11). The applicant stated that G70.00 (Myasthenia gravis without (acute) exacerbation) and G70.01 (Myasthenia gravis with (acute) exacerbation) may be used to currently identify the indication for RYSTIGGO® under the ICD–10–CM coding system. As previously discussed, if a technology meets all three of the substantial similarity criteria under the newness criterion, it would be considered substantially similar to an existing technology and would not be considered ‘‘new’’ for the purpose of new technology add-on payments. With respect to the substantial similarity criteria, the applicant asserted VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00207 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36742 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Re 0207 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36742 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations is not substantially that RYSTIGGO® similar to other currently available technologies because, while other treatments are available for gMG, about 40 percent of patients continue to experience exacerbations, and that RYSTIGGO® is the only treatment for In the FY 2026 IPPS/LTCH PPS proposed rule (90 FR 18139), with respect to the substantial similarity criteria, while the applicant stated that RYSTIGGO® does not use the same or a similar mechanism of action as compared to existing technologies because there are specific differences in FcRn affinities between RYSTIGGO® and other FcRn inhibitors, we stated that we were unclear as to what the specific differences are and whether they rise to the level of a new mechanism of action. We noted that VYVGART® approved for use in patients with gMG, and per FDA prescribing information, both technologies bind to the FcRn resulting in the reduction of circulating IgG.105 106 We welcomed additional information about how the mechanism of act ith gMG, and per FDA prescribing information, both technologies bind to the FcRn resulting in the reduction of circulating IgG.105 106 We welcomed additional information about how the mechanism of action for RYSTIGGO® differs from other existing FDA-approved therapies, including FcRn inhibitors such as VYVGART® applicant also stated that RYSTIGGO® does not involve the treatment of the is also an FcRn inhibitor . We noted that the 105 argenx US, Inc. VYVGART® (efgartigimod alfa-fcab) injection [Package Insert]. (Revised 8/ 2024). Available at: https:// www.accessdata.fda.gov/drugsatfda_docs/label/ 2024/761195s004,761304s003lbl.pdf. 106 UCB, Inc. RYSTIGGO® (rozanolixizumab-noli) injection, for subcutaneous use [Package Insert]. (Revised 6/2024). Available at: https:// www.accessdata.fda.gov/spl/data/c6e71126-50c1- 4ae2-9d82-b053d605b9cb/c6e71126-50c1-4ae2- 9d82-b053d605b9cb.xml. patients with gMG who are AChR or MuSK ab+, and that therefore, the technology meets the newness criterion. The following table summarizes the applicant’s assertions regarding the substantial similarity criteria. Please see the online application posting for same or similar type of disease and the same or sim e following table summarizes the applicant’s assertions regarding the substantial similarity criteria. Please see the online application posting for same or similar type of disease and the same or similar patient population when compared to an existing technology because, while there are other treatments for gMG, about 40 percent of patients continue to experience gMG exacerbation, suggesting an inadequate response to existing treatment and RYSTIGGO® is the only FDA-approved treatment for patients with gMG that are MuSK ab+. However, we noted there are other standard of care treatment options for patients with AChR ab+ and MuSK ab+ gMG, such as pyridostigmine, glucocorticoid therapy, and plasmapheresis. In addition, , ULTOMIRIS® VYVGART® , ZILBRYSQ® , and SOLIRIS® are also treatment options for patients with AChR ab+ gMG. Therefore, we questioned the assertion that RYSTIGGO® does not involve the treatment of the same or similar type of disease and the same or similar patient population when compared to existing technology. We invited public comments on whether RYSTIGGO® similar to existing technologies and whether RYSTIGGO® meets the newness criterion. is substantially Comment: The when compared to existing technology. We invited public comments on whether RYSTIGGO® similar to existing technologies and whether RYSTIGGO® meets the newness criterion. is substantially Comment: The applicant submitted a public comment regarding the newness criterion. The applicant stated that RYSTIGGO® meets the newness criterion for new technology add-on for the applicant’s RYSTIGGO® complete statements in support of its assertion that RYSTIGGO® substantially similar to other currently available technologies. is not payment status because it was just recently approved by FDA on June 26, 2023, and was not available for sale until July 20, 2023 and there are no other treatments for the disease or condition that RYSTIGGO® treats or diagnoses. The applicant noted that RYSTIGGO® is the first treatment approved by FDA specifically for patients with either AChR ab+ or MuSK ab+ gMG. The applicant also reiterated information from its application regarding its claim that RYSTIGGO® does not use the same or a similar mechanism of action compared to existing technologies to achieve a therapeutic outcome and does not treat the same or similar type of disease or patient population compared to se the same or a similar mechanism of action compared to existing technologies to achieve a therapeutic outcome and does not treat the same or similar type of disease or patient population compared to existing therapies. In response to CMS’s request for additional information about how the mechanism of action for RYSTIGGO® differs from existing FDA-approved therapies, including FcRn inhibitors such as VYVGART® , the applicant stated that while technically, both RYSTIGGO® and VYVGART® are FcRn blockers, RYSTIGGO® was specifically studied for the MuSK ab+ patient population, and FDA granted an expedited review of the product for this subset of gMG patients, for which there was previously no other indicated product. The applicant also commented that RYSTIGGO® differs from IMAAVY® in that IMAAVY® is VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00208 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00209 Fmt 4701 Sfmt 4725 E:\FR\FM\04AUR2.SGM 04AUR2 / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00210 Fmt 4701 Sfmt 4725 E:\FR\FM\04AUR2.SGM 4 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00209 Fmt 4701 Sfmt 4725 E:\FR\FM\04AUR2.SGM 04AUR2 / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00210 Fmt 4701 Sfmt 4725 E:\FR\FM\04AUR2.SGM 04AUR2 / > H P G 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00211 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36746 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations that in its Town Hall comment, the applicant emphasized that gMG, particularly MuSK positive gMG, is a rare disease and the number of patients in the study is consistent with other rare disease treatment clinical trials and was acceptable to FDA. However, we questioned if the results are generalizable to the Medicare population since only 2 patients treated with RYSTIGGO® were from the U.S. and only 1 patient treated was 65 years or older.108 We also noted that not all efficacy outcomes were statistically significant within the MuSK ab+ population. Specifically, the LSM difference in QMG between RYSTIGGO® and placebo was not statistically significant for either the RLZ 7 mg/kg group (97.5 percent confidence interva ithin the MuSK ab+ population. Specifically, the LSM difference in QMG between RYSTIGGO® and placebo was not statistically significant for either the RLZ 7 mg/kg group (97.5 percent confidence interval ¥14.24, 0.41) nor the RLZ 10 mg/kg group (97.5 percent confidence interval ¥9.73, 3.45). Further, we noted there appears to be a difference in the disease severity between the MuSK ab+ patients in the placebo and treatment arms. For example, results from Habib et al. (2024a) indicated that among the MuSK ab+ population of the MycarinG study, all patients with severe (Class IV) disease at baseline, per the Myasthenia Gravis Foundation of America (MGFA) classification system, were in the placebo arm (3⁄8), while individuals in the treatment groups all had mild or moderate (Class II or Class III) disease at baseline. We questioned how this difference may have impacted the placebo group’s outcomes relative to those of the treatment groups. Additionally, a higher percentage of patients were taking corticosteroids in the RYSTIGGO® groups (80 percent in 7 mg/kg group and 87.5 percent in 10 mg/kg group) compared to placebo (62.5 percent) and we questioned if this difference in background the aking corticosteroids in the RYSTIGGO® groups (80 percent in 7 mg/kg group and 87.5 percent in 10 mg/kg group) compared to placebo (62.5 percent) and we questioned if this difference in background therapy could have affected the outcomes, since oral corticosteroids were a permitted concomitant medication in the trial. We also noted that the trial excluded individuals with severe oropharyngeal or respiratory weakness, and we questioned whether this exclusion would affect the generalizability of the results for this MuSK ab+ subpopulation, as the applicant indicated that patients with MuSK ab+ gMG tend to have more severe disease with a potential unmet need for treatment options. We stated that the applicant also provided a meta-analysis comparing innovative therapies in MG, stating that it demonstrated that anti-FcRn treatments such as RYSTIGGO® showed greater effects on QMG, MGC, and MG- QoL15 compared to complement inhibitors, with VYVGART® and RYSTIGGO® having the highest probabilities of being the most effective treatment for MG–ADL and QMG. However, we noted that the same article indicated no significant difference in MG–ADL between complement inhibitors and anti-FcRn treatment es of being the most effective treatment for MG–ADL and QMG. However, we noted that the same article indicated no significant difference in MG–ADL between complement inhibitors and anti-FcRn treatments. Additionally, we noted that the analysis found that VYVGART® had the highest probability of being the best treatment, followed by RYSTIGGO® .109 We noted that we did not receive any other evidence comparing complement inhibitors or anti-FcRn treatments with RYSTIGGO® to demonstrate improved outcomes. Therefore, we requested additional information comparing RYSTIGGO® order to inform our assessment of whether RYSTIGGO® demonstrates a substantial clinical improvement over existing technologies. In addition, we noted that the meta-analysis included seven clinical trials, only two of which included patients positive for MuSK ab+, MycarinG and ADAPT, a trial studying VYVGART® analysis did not include trials studying other standard of care therapies in patients with MuSK ab+ gMG. Since the meta-analysis did not include a comparison of current therapies in patients with MuSK ab+ gMG, we questioned how this analysis demonstrates RYSTIGGO® clinical outcomes relative to previously available th a-analysis did not include a comparison of current therapies in patients with MuSK ab+ gMG, we questioned how this analysis demonstrates RYSTIGGO® clinical outcomes relative to previously available therapy for patients with MuSK ab+ gMG. to these other therapies in . The meta- improves We also noted that, while the applicant stated that RYSTIGGO® meets patient preferences for convenience by its ability to be administered via a subcutaneous infusion by a healthcare provider, either at an infusion clinic or at home with nurse assistance, the applicant did not provide a comparison of administration to other available therapies. We stated that we would further appreciate additional information on how the administration method for RYSTIGGO® demonstrates that the technology significantly improves one or more of the clinical outcomes described under the regulations at § 412.87(b)(1)(ii)(C). We invited public comments on whether RYSTIGGO® meets the substantial clinical improvement criterion. Comment: A few commenters expressed general support for RYSTIGGO® ’s eligibility for new technology add-on payments. A commenter stated its belief that use of 108 U.S. FDA CDER, 2023, op. cit. 109 Sacc omment: A few commenters expressed general support for RYSTIGGO® ’s eligibility for new technology add-on payments. A commenter stated its belief that use of 108 U.S. FDA CDER, 2023, op. cit. 109 Sacca`, 2023, op. cit. for the FDA-labeled RYSTIGGO® indications would require hospitals to incur costs that, without a new technology add-on payment, would have to be fully absorbed by the treating hospital. The commenter stated that the new technology add-on payment mechanism was created to eliminate the limitations in access to new therapies due to lack of reimbursement in the inpatient setting. Response: We thank the commenters for their input. Comment: The applicant submitted a public comment regarding the substantial clinical improvement criterion and provided responses to CMS’s concerns from the proposed rule. The applicant also reiterated information from its application regarding the claim that RYSTIGGO® meets the substantial clinical improvement criterion because it offers a treatment option for gMG patients unresponsive to, or ineligible for, currently available treatments, and that, RYSTIGGO® offers further clinical improvement in addition to standard of care therapies for adul t option for gMG patients unresponsive to, or ineligible for, currently available treatments, and that, RYSTIGGO® offers further clinical improvement in addition to standard of care therapies for adult patients with gMG. In response to CMS’s note that there is the first are other therapy options for patients with MuSK ab+ gMG, the applicant reiterated RYSTIGGO® approved treatment for gMG in adult patients who are MuSK ab+, and all other treatments are used off-label. In addition, the applicant discussed a case report of an adult patient with MuSK ab+ gMG that illustrated that the patient was responsive to and tolerant of 3,4- diaminopyridine (DAP). According to the applicant, the case report qualifies as Class IV evidence and is a single observational study without controls. The applicant further stated that, while in the abstract it would be ideal if the safety and efficacy of 3,4-DAP in patients with MuSK ab+ gMG were confirmed in randomized trials, the evidence to-date, along with real world data and patient reports, supports the conclusion that RYSTIGGO® is unique in being the first drug to treat the gMG MuSK ab+ population. In response to CMS’s question whether the evidence pr eal world data and patient reports, supports the conclusion that RYSTIGGO® is unique in being the first drug to treat the gMG MuSK ab+ population. In response to CMS’s question whether the evidence provided demonstrates that there is a population of patients with gMG with no other treatment options, which refers to the 10 to 20 percent of patients with gMG whose disease was not responsive to and not treated by conventional therapies due to inadequate response or intolerable side effects, the applicant stated that the 10 to 20 percent of patients with gMG referenced are those patients who are MuSK ab+, and thus did not have effective treatments VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00212 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36747 available until the approval of RYSTIGGO® . In response to CMS’s question if is the only treatment , ULTOMIRIS® , the RYSTIGGO® option for patients with gMG who have failed conventional therapy, given that some standard of care treatment options for patients were excluded from is the only treatment , ULTOMIRIS® , the RYSTIGGO® option for patients with gMG who have failed conventional therapy, given that some standard of care treatment options for patients were excluded from the MycarinG study, including rituximab products, VYVGART® , ZILBRYSQ® , and SOLIRIS® applicant restated that RYSTIGGO® was the first treatment option approved for the MuSK ab+ patient population and noted rituximab is not indicated for the treatment of MG even if it is sometimes used off-label in the MuSK ab+ patient population. According to the applicant, rituximab, an anti-CD20 mAb, is reserved for patients who are refractory to conventional oral immunosuppressants and used as part of an escalation therapy, which is supported in the International Consensus guidance. The applicant stated that safety concerns related to the risk of virus-related progressive multifocal leukoencephalopathy remain. Per the applicant, biologics have added to the more targeted treatment options for gMG, with SOLIRIS® being a first-in- class humanized mAb targeting the terminal complement complex, blocking the enzymatic cleaving of complement 5 (C5), and thereby preventing the activation of the complement SOLIRIS® being a first-in- class humanized mAb targeting the terminal complement complex, blocking the enzymatic cleaving of complement 5 (C5), and thereby preventing the activation of the complement complex. The applicant further stated that due to lack of complement involvement in the pathophysiology of MuSK ab+ patients with gMG, this difficult-to-treat subgroup of patients does not benefit from C5 inhibitor treatment. The applicant commented that immunosuppressive treatment of gMG is dominated by untargeted treatments, such as steroids and nonsteroidal immunosuppressants, and that both steroids and nonsteroidal immunosuppressants target the immune system non-specifically with the goal of reducing autoimmune reactivity in MG. The applicant stated that the treatments with these agents are associated with well-documented short-term as well as long-term toxicities, and that the delayed beneficial effect combined with early onset of tolerability issues frequently discourages patients from continuing therapy. The applicant further commented that both plasma exchange (PLEX) and IVIg are considered for patients with gMG who have exhausted all of their other treatment options, and whose om continuing therapy. The applicant further commented that both plasma exchange (PLEX) and IVIg are considered for patients with gMG who have exhausted all of their other treatment options, and whose clinical status is deteriorating despite ongoing immunosuppressive and acetylcholinesterase inhibitors (AChEI) therapies. According to the applicant, although treatment with PLEX or IVIg is mentioned in the International Consensus guidance for management of MG, neither treatment is approved in the U.S. for gMG. The applicant stated that the availability of IVIg (including shortages and increasing demand over supply) and repetitive cycles of IVIg and PLEX administered in a hospital setting are burdensome and time consuming for patients, caregivers, and healthcare professionals, and are not considered a viable long-term treatment option for the majority of patients with MG. In response to CMS’s question on how a subgroup analysis of the MycarinG study, in the Vu et al. (2023) abstract, provides evidence that RYSTIGGO® is the only treatment option for patients unresponsive to the prior standard of care, the applicant stated that MycarinG is a pivotal Phase III trial that led to the appro ides evidence that RYSTIGGO® is the only treatment option for patients unresponsive to the prior standard of care, the applicant stated that MycarinG is a pivotal Phase III trial that led to the approval of RYSTIGGO® , and Phase III trials typically don’t include head-to- head analyses. The applicant stated that the MycarinG study demonstrates that RLZ is a possible option for patients who have had or have not had prior therapies. In response to CMS’s further concern about why AChEIs were excluded from this subgroup analysis even though they are part of the standard of care for MG, the applicant stated that ‘‘prior therapies (0 1, 2 prior MG therapies excluding AChEI)’’ refers to patients who had been on two therapies that did not include AChEIs, not that the patient had not received AChEIs. The applicant clarified that this includes patients who might have received three prior therapies (for example AChEI, corticosteroids, and non-steroidal immunosuppressive therapies). According to the applicant, patients in the zero prior therapy group could have received AChEI but no other treatment and 86 percent of patients in MycarinG were on AChEIs. With regards to the concern that two post he applicant, patients in the zero prior therapy group could have received AChEI but no other treatment and 86 percent of patients in MycarinG were on AChEIs. With regards to the concern that two poster presentations (Bril et al., 2023b and Habib et al., 2024b) do not report statistically significant results, the applicant stated that the Bril et al. (2023b) poster did not report statistical significance because the poster included pooled extension data, so there was no placebo group to compare against, and therefore, no statistical test. Similarly, the applicant stated that the Habib et al. (2024b) poster did not report statistical significance given the reported significant change from baseline at day 43 in muscle weakness fatigability and physical fatigue, confirming the Bril et al. (2023b) study. Per the applicant, the Habib et al. (2024b) poster further shows the clinical meaningfulness for those data by applying the meaningful change thresholds that were determined post , . In response hoc. However, according to the applicant, because of the novel nature of the Myasthenia Gravis Symptoms Patient Reported Outcome (MGSPRO), the threshold of responder is a range, as described in sponse hoc. However, according to the applicant, because of the novel nature of the Myasthenia Gravis Symptoms Patient Reported Outcome (MGSPRO), the threshold of responder is a range, as described in the poster. The applicant stated that because both ends of the range of the threshold were applied, statistical significance does not apply here. The applicant stated that CMS posed several questions about the MycarinG study, which allowed trial participants to remain on standard of care therapies such as non-steroidal immunosuppressive therapy, steroids, and pyridostigmine, but not on other treatments, such as rituximab products, , ULTOMIRIS® VYVGART® ZILBRYSQ® , and SOLIRIS® to CMS’s questions about the lack of comparison to other treatments, the applicant stated it appreciates that it would be ideal if all study designs were identical, allowing for both head-to- head comparative results between different therapies and dose-response results in tests of identical duration. Per the applicant, there was a clearing out period for some of these therapies because, while no head-to-head studies have been conducted, continued use would potentially lead to immunosuppression that would be mor ant, there was a clearing out period for some of these therapies because, while no head-to-head studies have been conducted, continued use would potentially lead to immunosuppression that would be more severe and lead to other major side effects. In response to CMS’s questions about the 6-week trial duration given patient symptom variability, the applicant stated that the reason the study included 6 weeks of administration was that IgG levels were tracked and showed a 70 percent reduction at 6 weeks. In response to CMS’s questions about the difficulty in comparing results with 8-week studies (such as MycarinG and MG0004) or 16- week studies (MG0007), the applicant stated that the reason for the 8 weeks of observation in the pivotal trial and then 16 weeks in the open-label extension study is that patients were only reinitiated with therapy based on emerging symptoms, which speaks to the long-lasting durability of the product. In response to CMS’s question about whether there is a dose-response effect and the definition of a clinically meaningful improvement, the applicant stated the study considered a two-point difference in MG–ADL as a clinically meaningful improvement. The applic response effect and the definition of a clinically meaningful improvement, the applicant stated the study considered a two-point difference in MG–ADL as a clinically meaningful improvement. The applicant reiterated that more patients achieved meaningful symptom expression (MSE) in both rozanolixizumab groups than in the placebo group, and the change from baseline to day 43 in MGII was greater in both rozanolixizumab groups than in the placebo group. VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00213 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36748 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations A commenter provided a response to CMS’s concern on the validity of the endpoints used in the RYSTIGGO® study, including the rationale for using MG–ADL as the primary endpoint. The commenter stated that the choice of endpoints is largely driven by FDA preferences, and while sponsors may choose to select endpoints other than those outlined as acceptable within a review toward approval, few would assume the risk in doing so. The commenter stated that it is aware that FDA’s sponsors may choose to select endpoints other than those outlined as acceptable within a review toward approval, few would assume the risk in doing so. The commenter stated that it is aware that FDA’s preferences on specific endpoints evolves over time and could change while a study incorporating an older endpoint is in progress. The commenter asserted that, while it believes there are often flaws in FDA’s determination on endpoints for specific rare and ultra-rare conditions, once a study has started (and certainly after FDA has granted approval based on that endpoint), CMS should not make an independent decision impacting access based on choice of endpoints. The commenter further stated that CMS’s analyses related to RYSTIGGO® focused primarily on whether there is a particular subpopulation for which the treatment under review offers a significant improvement over other treatments. The commenter stated that these inquiries appeared to examine whether other products existed and the extent to which there was a direct comparison between those therapies and the product under review. The commenter stated the time from approval to expiration of any new technology add-on payment period tent to which there was a direct comparison between those therapies and the product under review. The commenter stated the time from approval to expiration of any new technology add-on payment period is 3 years, far too short for any comparative effectiveness study. The commenter stated its belief that the expectation of data that unequivocally demonstrates superiority of a newly approved treatment over existing branded therapies is simply not realistic. In response to CMS’s question with respect to the discrepancy in numbers between 21 MuSK ab+ patients included in the MycarinG study submitted by the applicant and 16 patients tested positive for the MuSK ab+ in the FDA Integrated Review for RYSTIGGO® , the applicant clarified that the 21 MuSK ab+ patients is the number of historical MG-specific autoantibody status patients, and the baseline MG-specific autoantibody status was 16 patients. In response to CMS’s question if the results of the MycarinG study are generalizable to the Medicare population due to the small sample size,110 the applicant commented that MuSK ab+ gMG is a rare disease, and limited U.S. enrollment is not unusual 110 U.S. FDA CDER, 2023, op. cit. in global tria are population due to the small sample size,110 the applicant commented that MuSK ab+ gMG is a rare disease, and limited U.S. enrollment is not unusual 110 U.S. FDA CDER, 2023, op. cit. in global trials for rare conditions. The applicant commented that FDA’s acceptance of the sample size and international enrollment is consistent with rare disease norms. Additionally, a commenter stated that it urges CMS to accept the manufacturers assertion that small study samples are not only common to rare disease studies but that they are accepted by FDA to support approval. The commenter stated that with respect to generalizability to the Medicare population, it urges CMS to recognize that recruitment of patients over age 65 has been a challenge for researchers regardless of patient population size, and additionally, Medicare’s beneficiary population extends beyond those over age 65 to include disabled individuals. Per the commenter, approximately 10 percent of individuals qualifying for SSDI payments (and subsequently eligible for Medicare benefits) are disabled due to a condition of nervous system and sense organs such as MG. In response to CMS’s concern that in the MycarinG study not all e ments (and subsequently eligible for Medicare benefits) are disabled due to a condition of nervous system and sense organs such as MG. In response to CMS’s concern that in the MycarinG study not all efficacy outcomes were statistically significant within the MuSK ab+ population, the applicant stated that as a rare disease with a small patient population in the pivotal study, it is not unusual that some endpoints may not demonstrate statistical significance. The applicant acknowledged that the QMG score difference between RYSTIGGO® and placebo in the MuSK ab+ subgroup did not reach statistical significance, as the 97.5 percent CIs crossed zero. The applicant stated that the MG–ADL and MGC endpoints were statistically significant or numerically favored RYSTIGGO® applicant, the small size of the MuSK ab+ subgroup (n=21) results in limited power, but multiple endpoints consistently showed improvement. The applicant stated that this trend across endpoints supports clinical benefit, notwithstanding the absence of ideal statistical uncertainty. The applicant reiterated that as with many rare disease indications, the limited power of the studies necessarily will constrain the nature of the tanding the absence of ideal statistical uncertainty. The applicant reiterated that as with many rare disease indications, the limited power of the studies necessarily will constrain the nature of the data, and FDA was comfortable approving the biologic and found the available statistical evidence sufficient. . According to the In response to CMS’s concern that in the MycarinG study there was a difference in the disease severity between the MuSK ab+ patients in the placebo and treatment arms, the applicant stated that patients were randomized. The applicant also stated that consistent improvements across MG–ADL, QMG, and MGC (in the context of randomization) suggest efficacy notwithstanding baseline severity differences. In response to CMS’s question on whether the difference in corticosteroid use between treatment and placebo groups in the clinical trial could have impacted the trial results, the applicant commented that this variability is inevitable in rare disease clinical trials that necessarily involve relatively small numbers of patients. The applicant further stated that the extensive data analysis that followed the trial did not produce any suggestion that corticosteroid u hat necessarily involve relatively small numbers of patients. The applicant further stated that the extensive data analysis that followed the trial did not produce any suggestion that corticosteroid use influenced trial results. The applicant commented that, whether or not corticosteroids could enhance response and amplify the treatment effect, RYSTIGGO® still demonstrated a benefit over placebo despite corticosteroids being allowed across arms. In response to CMS’s question on the choice of the clinical study design to exclude individuals with severe oropharyngeal or respiratory weakness, and whether the trial results would apply to such patients, the applicant commented that while additional data or trials including this subgroup would enhance relevance for the Medicare population with more severe disease, the clinical trial design that was accepted by FDA did not require the inclusion of these patients to demonstrate efficacy. , are among the The applicant commented in response to CMS’s concerns about a meta-analysis comparing innovative therapies in MG. In response to CMS’s question why there was no significant difference in MG–ADL between complement inhibitors and anti-FcRn tr MS’s concerns about a meta-analysis comparing innovative therapies in MG. In response to CMS’s question why there was no significant difference in MG–ADL between complement inhibitors and anti-FcRn treatments, the applicant stated that the meta-analysis suggests that anti-FcRn therapies, including RYSTIGGO® most promising emerging treatments for gMG based on multiple outcome measures, with statistically superior results to complement inhibitors in QMG, MG-QoL15, and a trend toward improved MGC. In response to CMS’s requested additional information comparing RYSTIGGO® to other therapies, the applicant stated that, notwithstanding the conclusions of the meta-analysis, the totality of available evidence for RYSTIGGO® —the meta- analysis by Sacca` et al. (2023), differentiation in patient populations treated (particularly MuSK ab+), subcutaneous route with home administration, rapid onset of effect, and favorable safety profile without the need for complement blockade monitoring—supports the conclusion that RYSTIGGO® substantial clinical improvement over existing therapies for appropriate patients with gMG. In response to represents a VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 0 he conclusion that RYSTIGGO® substantial clinical improvement over existing therapies for appropriate patients with gMG. In response to represents a VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00214 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations 36749 CMS’s question of how the meta- analysis demonstrates improved clinical outcomes without a comparison to current therapies in patients with MuSK ab+ gMG, the applicant stated its view that the clinical trial data in both the pivotal studies and from the meta- analysis contain sufficient evidence to conclude that RYSTIGGO® offers clinical superiority over the existing standard of care for the MuSK ab+ patients at the time of approval. Further, the applicant commented that the meta- analysis included two clinical trials with MusK ab+ patient data, MycarinG and ADAPT, while the remaining five trials primarily enrolled patients with AChR ab+ gMG. The applicant stated that it agrees that the meta-analysis, as published, does not allow for a subgroup-level indirect comparison e remaining five trials primarily enrolled patients with AChR ab+ gMG. The applicant stated that it agrees that the meta-analysis, as published, does not allow for a subgroup-level indirect comparison of RYSTIGGO® with standard of care therapies specifically in the MuSK ab+ population. According to the applicant, the meta-analysis did not include trials assessing standard of care therapies (for example, corticosteroids, cholinesterase inhibitors, or non-steroidal immunosuppressants) in MuSK ab+ gMG. The applicant stated that this gap reflects a broader evidence limitation in the field but does not detract from the conclusions of the literature and clinical results demonstrating that RYSTIGGO® was the first FDA-approved treatment specifically indicated for MuSK ab+ gMG in adult patients. The applicant also stated that the evidence demonstrates that patients with MuSK Ab+ gMG often do not respond to cholinesterase inhibitors and may have intolerances or inadequate responses to corticosteroids and immunosuppressants. The applicant further stated the MycarinG study included a subgroup of 21 patients with MuSK ab+ gMG, representing a rare disease cohort. The applicant noted that these p roids and immunosuppressants. The applicant further stated the MycarinG study included a subgroup of 21 patients with MuSK ab+ gMG, representing a rare disease cohort. The applicant noted that these patients demonstrated rapid onset of clinical improvement in MG–ADL and MGC scores by Day 8, numerically greater improvements versus placebo across multiple endpoints (MG–ADL, MGC, QMG, PRO measures), and an MG–ADL responder rate of 100 percent in both RYSTIGGO® compared to 14 percent in placebo. Per the applicant, these results were achieved in the context of a randomized, placebo-controlled, double-blind phase 3 trial, representing the highest level of evidence currently available for this subgroup. The applicant stated that in summary, the clinical trials reflect the clinical benefits of RYSTIGGO® disease population notwithstanding the for the MuSK ab+ rare treatment arms absence of standard of care-controlled RCTs. ’s administration method to In response to CMS’s request for additional information comparing RYSTIGGO® other therapies and regarding how the administration method for RYSTIGGO® demonstrates that the technology significantly improves one or more of the clinical outcomes d information comparing RYSTIGGO® other therapies and regarding how the administration method for RYSTIGGO® demonstrates that the technology significantly improves one or more of the clinical outcomes described under the regulations at § 412.87(b)(1)(ii)(C), the applicant commented that patient preference is directly related to an improvement in the quality of the patient’s life when on therapy, § 412.87(b)(1)(ii)(C)(6), and patient preference is directly related to greater medication adherence. The applicant stated that patient preference is implicated by the regulatory factors that CMS must consider in evaluating clinical superiority. The applicant commented that RYSTIGGO® subcutaneous delivery with optional home administration offers potential convenience over IV therapies like IVIg or PLEX, which require clinic settings. ’s Response: We thank the applicant and the commenters for their comments regarding the substantial clinical improvement criterion. Based on the additional information received, we continue to have concerns as to whether RYSTIGGO® for the treatment of MuSK ab+ gMG meets the substantial clinical improvement criterion to be approved for new technology add-on paymen on received, we continue to have concerns as to whether RYSTIGGO® for the treatment of MuSK ab+ gMG meets the substantial clinical improvement criterion to be approved for new technology add-on payments. We note that whether a particular treatment improves outcomes does not demonstrate that the treatment offers an option for patients with no other options. We also note that being the first treatment with a specific (narrower) indication, does not singularly demonstrate substantial clinical improvement, particularly when there are other treatments available which are considered the standard of care, and which have broader indications. Therefore, we continue to question that the evidence provided demonstrates both that there is a population of patients with MuSK ab+ gMG with no other treatment options, and that RYSTIGGO® offers further clinical improvement over currently available standard of care therapies for adult patients with MuSK ab+ gMG. We also did not receive data to indicate that potential confounders such as differences in disease severity and other therapies received among the treatment groups in MycarinG could not have impacted the study results. We also continue to ques at potential confounders such as differences in disease severity and other therapies received among the treatment groups in MycarinG could not have impacted the study results. We also continue to question the assertion of improved clinical outcomes with RYSTIGGO® compared to other therapies without adequate comparison data to other therapies in the MuSK ab+ patient population. In addition, we question whether the clinical outcome results provided by the applicant adequately distinguish the effect of RYSTIGGO® symptoms. from natural changes in The applicant and another commenter highlighted that the study design, including endpoints, sample size, and international enrollment, was accepted by FDA. As previously stated, while FDA has regulatory responsibility for decisions related to marketing authorization, we do not rely upon FDA criteria in our evaluation of substantial clinical improvement for purposes of determining what services and technologies qualify for new technology add-on payments under Medicare. This criterion does not depend on the standard of safety and efficacy on which FDA relies but on a demonstration of substantial clinical improvement in the Medicare population. I ments under Medicare. This criterion does not depend on the standard of safety and efficacy on which FDA relies but on a demonstration of substantial clinical improvement in the Medicare population. In addition, with regard to the generalizability of the MycarinG study results to the Medicare population, while we acknowledge that Medicare does include beneficiaries under the age of 65 years who are disabled, we are unclear that the MycarinG study included any patients generalizable to disabled Medicare patients since it excluded patients with more severe disease (severe oropharyngeal or respiratory weakness). Also, as stated previously, all MuSK ab+ patients in the treatment arms of the MycarinG study had mild or moderate disease. Given this, and that only one patient who received RYSTIGGO® was 65 years or older, the age of the majority of the Medicare population, we remain unclear that the patient population of the MycarinG trial represented the Medicare population that is eligible for this technology. Finally, we note the applicant did not provide any evidence linking patient preference to greater medication adherence or greater quality of life for patients treated with RYSTIGGO® r this technology. Finally, we note the applicant did not provide any evidence linking patient preference to greater medication adherence or greater quality of life for patients treated with RYSTIGGO® , nor any comparison of these outcomes to other treatment options. Therefore, we disagree that the administration method for RYSTIGGO® for patients with MuSK ab+ gMG demonstrates that the technology significantly improves clinical outcomes over other available treatments. After consideration of all the information received from the applicant, as well as the public comments we received, we are unable to determine that RYSTIGGO® MuSK ab+ gMG represents a substantial clinical improvement over existing technologies for the reasons discussed in the proposed rule and in this final rule, and therefore, we are not for patients with VerDate Sep 2014 00:36 Aug 02, 2025 Jkt 265001 PO 00000 Frm 00215 Fmt 4701 Sfmt 4700 E:\FR\FM\04AUR2.SGM 04AUR2 2 S E L U R h t i w D O R P 4 4 1 S 7 W 9 K S D n o d n o m m a h k 36750 Federal Register / Vol. 90, No. 147 / Monday, August 4, 2025 / Rules and Regulations approving new technology add-on payments for RYSTIGGO® for FY 2026. k. SYMVESSTM (Acellular Tiss