technetium generator pricing: For a given generator producer, the incremental cost of a technetium generator curie of Mo-99 is approximately the same regardless of the size of the generator, and there is also a fixed-price component that is independent of generator size. This observation led the committee to conclude that it should develop estimates for the technetium generators rather than the Mo-99 that is contained within them.

The committee used two sources of information to estimate technetium generator prices. First, Bio-Tech Systems (2006) reported that average prices for Mallinckrodt and BMS (now Lantheus) generators in 2005 were $1,400 and $2,080, respectively. Bio-Tech Systems (2006) also reported that the average Mallinckrodt generator size was 10 Ci, and the average BMS generator size was 16 Ci (see Table 3.3).12

Second, the committee obtained the radiopharmaceutical price list for Fraser Health, a large health authority in British Columbia, which contains technetium generator prices for two companies.13 This price list was negotiated in 2005, the same year covered by the Bio-Tech Systems report described previously, and is valid for purchases during the period 2005–2008. The prices were quoted in Canadian dollars (C$). In 2005, a Canadian dollar was worth about US$0.83.14 The low and high prices for each generator size are C$1,800 (US$1,490 in 2005) and C$2,300 (US$1,910 in 2005), respectively, for a 7.5 Ci generator and C$2,300 (US$1,910 in 2005) and C$2,800 (US$2,320 in 2005), respectively, for a 10 Ci generator. The price variations reflect different bundles for different numbers of generator purchases.

The cost variation for technetium generators sold to Fraser Health is about 12 percent for the 7.5 Ci generator and 10 percent for the 10 Ci generator. It is interesting to note the prices for 10 Ci generators sold to Fraser Health generator are much higher than the average price of a BMS generator. Of course, the latter price is an average and the former represents prospective prices for generators to be sold over a 3-year period. This dataset is too sparse to develop quantitative distributions of generator costs.

Costs for Tc-99m

Tc-99m is produced from technetium generators as a sodium pertechnetate solution (NaTcO4); the quantity of Tc-99m contained in the solution

12

As noted in Table 3.3 the sizes of Mallinckrodt and BMS generators are incorrectly transposed in the Bio-Tech Systems (2006) report.

13

Fraser Health requested that the committee not name the companies. Fraser Health is a large health care company that can obtain competitive prices based on the numbers of generators it purchases.

14

This exchange rate is based on the average daily interbank exchange rate for 2005 listed on the Bank of Canada website. As of December 2008, C$1.00 was approximately equal to US$0.80.



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