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Original Issue Date (Created): May 1, 2010 Most Recent Review Date (Revised): March 25, 2014 Effective Date: June 1, 2014 I. POLICY Preauthorization is required for injectable Canakinumab (Ilaris ): Note: Requests for injectable Canakinumab (Ilaris ) to treat Cryopyrin-Associated Periodic Syndromes (CAPS) and Systemic Juvenile Idiopathic Arthritis (SJIA) must be accompanied by a completed preauthorization form prior to treatment, at 12 weeks, and every 6 months during treatment. There should be supporting documentation showing improvement for continuation of treatment. Initial Therapy Canakinumab (Ilaris ) may be considered medically necessary for treatment of Cryopyrin- Associated Periodic Syndromes (CAPS) when the following criteria are met: Consulting rheumatologist or immunologist recommends treatment with canakinumab (Ilaris ); Adult patient or a child 4 years of age or older; Laboratory evidence of a genetic mutation in the Cold-Induced Auto Inflammatory Syndrome 1 (sometimes referred NLRP3); and Patient is diagnosed with Familial Cold Autoinflammatory Syndrome (FCAS); or Patient is diagnosed with Muckels-Wells Syndrome (MWS); and Documentation that the patient has significant functional impairment resulting in limitations of activities of daily living; and Patient is not using a tumor necrosis factor or Anakinra (Interleukin-1 receptor antagonist) or Rilonacept (IL-1 trap) ; and The patient does not have an active or chronic infection such as tuberculosis, HIV, or Hepatitis B or Hepatitis C. Canakinumab (Ilaris ) may be considered medically necessary for treatment of Systemic Juvenile Idiopathic Arthritis (SJIA) in patients aged 2 years and older when the following criteria are met. The patient does not have an active or chronic infection such as tuberculosis, HIV, or Hepatitis B or Hepatitis C. Note: Prior to initiating immunomodulatory therapies, including ILARIS, patients should be evaluated for active and latent tuberculosis infection. Appropriate screening tests should be performed in all patients. ILARIS has not been studied in patients with a positive tuberculosis screen, and the safety of Page 1

ILARIS in individuals with latent tuberculosis infection is unknown. Patients testing positive in tuberculosis screening should be treated according to standard medical practice prior to therapy with ILARIS. Maintenance Therapy Canakinumab (Ilaris ) maintenance therapy may be considered medically necessary when therapy has demonstrated efficacy as evidenced by an improvement in disease activity at 12 weeks and maintenance of at least that improvement at each six month re-evaluation. Canakinumab (Ilaris ) is considered investigational for the treatment of all other indications, as there is insufficient evidence to support a conclusion concerning the health outcomes or benefits associated with this procedure. Cross-reference MP-2.103 Off-Label Use of Prescription Drugs and Medical Devices II. PRODUCT VARIATIONS [N] = No product variation, policy applies as stated [Y] = Standard product coverage varies from application of this policy, see below [N] Capital Cares 4 Kids [N] PPO [N] HMO [N] SeniorBlue HMO [N] SeniorBlue PPO [N] Indemnity [N] SpecialCare [N] POS [Y] FEP PPO* **Refer to FEP Medical Policy Manual MP-5.02.09 Ilaris (Canakinumab). The FEP Medical Policy manual can be found at: www.fepblue.org III. DESCRIPTION/BACKGROUND Canakinumab (Ilaris ) is an interleukin-1β blocker which is FDA approved for the treatment of cryopyrin-associated periodic syndromes (CAPS) in adults and children 4 years of age and older and for active Systemic Juvenile Idiopathic Arthritis (SJIA) in patients aged 2 years and older. CAPS refers to a group of rare inflammatory diseases arising from a single mutation in the NLRP-3 gene which encodes for a protein, cryopyrin. The mutation promotes aberrant Page 2

activation of the protein which leasds to inappropriate production of interleukin-1 beta which causes an exuberant systemic inflammatory response. CAPS comprises three syndromes to include: familial cold auto-inflammatory syndrome (FCAS), Muckle-Wells syndrome (MWS) and neonatal-onset multisystem inflammatory disease (NOMID). Familial cold autoinflammatory syndrome Familial cold autoinflammatory syndrome (FCAS), formerly called familial cold urticaria, is the mildest of the cryopyrin-associated disorders. It is an unusual condition in which exposure to generalized cold, such as an air-conditioned room, results in a stereotyped systemic inflammatory response including fever, an urticarial rash, conjunctival injection, and substantial arthralgias. Symptoms usually develop in the first year of life, occasionally in the newborn period upon exposure to cold in the delivery room. Attacks usually resolve within 24 hours, though considerable variability is observed between individuals and also depending on the extent and duration of cold exposure. Muckle-Wells syndrome Muckle-Wells syndrome (MWS) is a rare condition characterized by the following triad: Intermittent episodes of fever, urticarial rash, and joint pain (arthralgias or arthritis) Progressive sensorineural hearing loss Secondary (AA) amyloidosis with nephropathy. Febrile episodes occur at irregular intervals every few weeks, lasting 12 to 36 hours before resolving spontaneously. Age of onset is variable. Precipitating factors vary are cannot always be identified, but may include both heat and cold. Complications include sensorineural hearing loss and amyloidosis. Neonatal onset multisystem inflammatory disease Abnormalities in cryopyrin are responsible for some, but not all, cases of neonatal-onset multisystem inflammatory disease (NOMID), which is also known as chronic infantile neurological cutaneous and articular (CINCA) syndrome. It is the most serious of the autoinflammatory cryopyrinopathies. Clinical features, including a migratory, erythematous rash resembling urticaria, fever, impaired growth, abnormal facies with frontal bossing, protruding eyes, and saddle-shaped nose, are characteristic and generally develop at or near the time of birth. Active systemic juvenile idiopathic arthritis (SJIA) US Food and Drug Administration (FDA) approved Ilaris (canakinumab) in May 2013 for the treatment of active systemic juvenile idiopathic arthritis (SJIA) in patients aged 2 years and older. Ilaris is the first interleukin-1 beta (IL-1 beta) inhibitor approved for SJIA and the only Page 3

treatment approved specifically for SJIA that is given as a once-monthly subcutaneous injection. SJIA is a rare and disabling form of childhood arthritis characterized by spiking fever, rash and arthritis that can affect children as young as 2 years old and can continue into adulthood. This approval was based on two Phase III trials in SJIA patients, aged 2-19, showing significant improvement in the majority of Ilaris-treated patients. Study 1 showed that 84% of patients treated with one subcutaneous dose of Ilaris achieved the primary endpoint of the adapted pediatric American College of Rheumatology 30 (ACR30), compared to 10% achievement of ACR30 for placebo at Day 15. In the open-label part of Study 2, 92 of 128 patients attempted "corticosteroid tapering". Of those 92 patients, 62% were able to substantially reduce their use of corticosteroids, and 46% completely discontinued corticosteroids. In the controlled portion of Study 2, there was a 64% relative reduction in the risk of flare for patients in the Ilaris group as compared to those in the placebo group (hazard ratio of 0.36; 95% CI: 0.17 to 0.75). General administration information Medications that affect interleukin-1 (IL-1) a protein involved in inflammation may be helpful in controlling the symptoms of CAPS. Canakinumab (Ilaris ) blocks the activity of IL-1. For treatment of CAPS, Canakinumab is administered every eight weeks as a single dose via subcutaneous injection by a healthcare provider. The recommended dose of canakinumab is 150 mg. for CAPS patients with body weight great than 40 kg and 2 mg/kg for CAPS patients with body weight greater than or equal to 15 kg and less than or equal to 40 kg. For children 15 to 40 kg with an inadequate response, the dose can be increased to 3 mg/kg. The recommended dose of ILARIS ) for SJIA patients with a body weight greater than or equal to 7.5kg is 4mg/kg (with a maximum of 300mg) administered every four weeks via subcutaneous injection. IV. RATIONALE Treatment of CAPS The efficacy and safety of ILARIS for the treatment of CAPS was demonstrated in CAPS Study 1, a 3- part trial in patients 9 to 74 years of age with the MWS phenotype of CAPS. Throughout the trial, patients weighing more than 40 kg received ILARIS 150 mg and patients weighing 15 to 40 kg received 2 mg/kg. Part 1 was an 8-week open-label, single-dose period where all patients received ILARIS. Patients who achieved a complete clinical response and did not relapse by Week 8 were randomized into Part 2, a 24-week randomized, double-blind, placebo-controlled withdrawal period. Patients who completed Part 2 or experienced a disease flare entered Part 3, a 16-week open-label active treatment phase. A complete response was defined as ratings of minimal or better for physician s assessment of disease activity (PHY) and assessment of skin disease (SKD) and had serum levels of C-Reactive Page 4

Protein (CRP) and Serum Amyloid A (SAA) less than 10 mg/l. A disease flare was defined as a CRP and/or SAA values greater than 30 mg/l and either a score of mild or worse for PHY or a score of minimal or worse for PHY and SKD. In Part 1, a complete clinical response was observed in 71% of patients one week following initiation of treatment and in 97% of patients by Week 8 (see Figure 1 and Table 2). In the randomized withdrawal period, a total of 81% of the patients randomized to placebo flared as compared to none (0%) of the patients randomized to ILARIS. The 95% confidence interval for treatment difference in the proportion of flares was 53% to 96%. At the end of Part 2, all 15 patients treated with ILARIS had absent or minimal disease activity and skin disease (see Table 3). In a second trial, patients 4 to 74 years of age with both MWS and FCAS phenotypes of CAPS were treated in an open-label manner. Treatment with ILARIS resulted in clinically significant improvement of signs and symptoms and in normalization of high CRP and SAA in a majority of patients within 1 week. Markers of inflammation CRP and SAA normalized within 8 days of treatment in the majority of patients. Normal mean CRP (Figure 1) and SAA values were sustained throughout CAPS Study 1 in patients continuously treated with canakinumab. After withdrawal of canakinumab in Part 2 CRP (figure 1) and SAA values again returned to abnormal values and subsequently normalized after reintroduction of canakinumab in Part 3. The pattern of normalization of CRP and SAA was similar. Page 5

Treatment of SJIA The efficacy of ILARIS for the treatment of active SJIA was assessed in two phase 3 studies (SJIA Study 1 and SJIA Study 2). Patients enrolled were aged 2 to less than 20 years (mean age at baseline: 8.5 years) with a confirmed diagnosis of SJIA at least 2 months before enrollment (mean disease duration at baseline: 3.5 years). Patients had active disease defined as greater than or equal to 2 joints with active arthritis (mean number of active joints at baseline: 15.4), documented spiking, intermittent fever (body temperature greater than 38 C) for at least 1 day within 1 week before study drug administration, and CRP greater than 30 mg/l (normal range less than 10 mg/l) (mean CRP at baseline: 200.5mg/L). Patients were allowed to continue their stable dose of methotrexate, corticosteroids, and/or NSAIDs without change, except for tapering of the corticosteroid dose as per study design in SJIA Study 2 (see below). SJIA Study 1 was a randomized, double-blind, placebo-controlled, single-dose 4-week study assessing the short term efficacy of ILARIS in 84 patients randomized to receive a single subcutaneous dose of 4 mg/kg ILARIS or placebo (43 patients received ILARIS and 41 patients received placebo). The primary objective of this study was to demonstrate the superiority of ILARIS versus placebo in the proportion of patients who achieved at least 30% improvement in an adapted pediatric American College of Rheumatology (ACR) response criterion which included both the pediatric ACR core set (ACR30 response) and absence of fever (temperature less than or equal to 38 C in the preceding 7 days) at Day 15. Pediatric ACR responses are defined by achieving levels of percentage improvement (30%, 50%, and 70%) from baseline in at least 3 of the 6 core outcome variables, with worsening of greater than or equal to 30% in no more than one of the remaining variables. Core outcome variables included a physician global assessment of disease activity, parent or patient global assessment of wellbeing, number of joints with active arthritis, number of joints with limited range of motion, CRP, and functional ability (Childhood Health Assessment Questionnaire - CHAQ). Page 6

Percentages of patients by pediatric ACR response are presented in Table 4. Results for the components of the pediatric ACR core set were consistent with the overall ACR response results, for systemic and arthritic components including the reduction in the total number of active joints and joints with limited range of motion. Among the patients who returned for a Day 15 visit, the mean change in patient pain score (0-100 mm visual analogue scale) was -50.0 mm on ILARIS (N=43), as compared to +4.5 mm on placebo (N=25). The mean change in pain score among ILARIS treated patients was consistent through Day 29. All patients treated with ILARIS had no fever at Day 3 compared to 87% of patients treated with placebo. SJIA Study 2 was a randomized, double-blind, placebo controlled, withdrawal study of flare prevention by ILARIS in patients with active SJIA. Flare was defined by worsening of greater than or equal to 30% in at least 3 of the 6 core Pediatric ACR response variables combined with improvement of greater than or equal to 30% in no more than 1 of the 6 variables, or reappearance of fever not due to infection for at least 2 consecutive days. The study consisted of two major parts. 177 patients were enrolled in the study and received 4mg/kg ILARIS subcutaneously every 4 weeks in Part I and 100 of these patients continued into Part II to receive either ILARIS 4mg/kg or placebo subcutaneously every 4 weeks. Corticosteroid dose tapering Of the total 128 patients who entered the open-label portion of Study 2 taking corticosteroids, 92 attempted corticosteroid tapering. Fifty-seven (62%) of the 92 patients who attempted to taper were able to successfully taper their corticosteroid dose and 42 (46%) discontinued corticosteroids. Time to Flare Part II was a randomized withdrawal design to demonstrate that the time to flare was longer with ILARIS than with placebo. Follow-up stopped when 37 events had been observed resulting in patients being followed for different lengths of time. The probability of experiencing a flare over time in Part II was statistically lower for the ILARIS treatment group than for the placebo group (Figure 2). This Page 7

corresponded to a 64% relative reduction in the risk of flare for patients in the ILARIS group as compared to those in the placebo group (hazard ratio of 0.36; 95% CI: 0.17 to 0.75). V. DEFINITIONS N/A VI. BENEFIT VARIATIONS The existence of this medical policy does not mean that this service is a covered benefit under the member's contract. Benefit determinations should be based in all cases on the applicable contract language. Medical policies do not constitute a description of benefits. A member s individual or group customer benefits govern which services are covered, which are excluded, and which are subject to benefit limits and which require preauthorization. Members and providers should consult the member s benefit information or contact Capital for benefit information. VII. DISCLAIMER Capital s medical policies are developed to assist in administering a member s benefits, do not constitute medical advice and are subject to change. Treating providers are solely responsible for medical advice and treatment of members. Members should discuss any medical policy related to their coverage or condition with their provider and consult their benefit information to determine if the service is covered. If there is a discrepancy between this medical policy and a member s benefit information, the benefit information will govern. Capital considers the Page 8

information contained in this medical policy to be proprietary and it may only be disseminated as permitted by law. VIII. REFERENCES BCBSA Specialty Pharmacy Combined Capacity (SPCC) Report #5 Cryopyrin- Associated Periodic Syndromes (CAPS) June 2010. Centers for Medicare and Medicaid Services (CMS) Medicare Benefit Policy Manual Publication 100-02 Chapter 15 Section 50 Drugs and Biologicals, Section 50.4.1 Approved Use of Drug, Section 50.4.2 Unlabeled Use of Drug, Section 50.4.3 Examples of Not Reasonable and Necessary Effective 10/01/03 [Website]: http://www.cms.gov. Accessed December 26, 2013. Dewitt EM, Kimura Y, Beukelman T, et al. Consensus Treatment Plans for New-Onset Systemic Juvenile Idiopathic Arthritis. Arthritis Care & Research 2012; 64(7):1001-1010. Ilaris prescribing information Novartis Pharmaceuticals Corporation East Hanover, NJ. May 2013. [Website]: http://www.pharma.us.novartis.com Accessed December 26, 2013. Lachmann HJ, Kone-Paut I, et al Use of Canakinumab in the Cryopyrin-Associated Periodic Syndrome N Engl J Med 2009:360:2416-25 Nigrovic P. Cryopyrin-associated periodic syndromes and related disorders In: UpToDate Online Journal [serial online]. Waltham, MA: UpToDate; updated August 8, 2012. [Website]: http://www.uptodate.com/home/index.html Accessed December 26, 2013. IX. CODING INFORMATION Note: This list of codes may not be all-inclusive, and codes are subject to change at any time. The identification of a code in this section does not denote coverage as coverage is determined by the terms of member benefit information. In addition, not all covered services are eligible for separate reimbursement. Covered when medically necessary: CPT Codes Current Procedural Terminology (CPT) copyrighted by American Medical Association. All Rights Reserved. Covered when medically necessary: HCPCS Code Description J0638 Injection, Canakinumab, 1mg Page 9

ICD-9-CM Diagnosis Description Code* 279.49 Autoimmune disease, not elsewhere classified 708.2 Urticaria due to cold and heat 714.30 Polyarticular juvenile rheumatoid arthritis, chronic or unspecified *If applicable, please see Medicare LCD or NCD for additional covered diagnoses. The following ICD-10 diagnosis codes will be effective October 1, 2015 ICD-10-CM Diagnosis Description Code* D89.89 Other specified disorders involving the immune mechanism, not elsewhere classified L50.2 Urticaria due to cold and heat M08.00- Juvenile arthritis code range M08.99 *If applicable, please see Medicare LCD or NCD for additional covered diagnoses. X. POLICY HISTORY CAC 3/30/10 New policy. CAC 4/26/11 Minor revision. Prescribing information reviewed for any updates. Information added that this is approved for an adult patient or a child 4 years of age or older. CAC 6/26/12 Consensus review; no changes, references updated. CAC 7/30/13. Minor revision. Added new FDA indication for Active Systemic Juvenile Idiopathic Arthritis (SJIA) in patients aged 2 years and older. Policy coded. CAC 3/25/14 Consensus review. References updated; no changes to the policy statements. Rationale added. Medicare variation removed. Coding reviewed. Health care benefit programs issued or administered by Capital BlueCross and/or its subsidiaries, Capital Advantage Insurance Company, Capital Advantage Assurance Company and Keystone Health Plan Central. Independent licensees of the BlueCross BlueShield Association. Communications issued by Capital BlueCross in its capacity as administrator of programs and provider relations for all companies Page 10