21 November 2016 - Note to drugmakers negotiating with payers: it’s not the price tag that’s the problem, or at least not by itself.
So said Amgen’s Tony Hooper, EVP of commercial operations for the Big Biotech, in a recent meeting with Leerink Partners analysts. The number payers are really interested in is budget impact, or how much they’ll have to shell out every year to treat the patients they cover.
What does this mean for Amgen and partner Novartis, which are getting ready to launch a prospective migraine drug, erenumab? The company is talking with payers about contracts that would cap that budget impact, by committing to a per-member, per-month spending level, Hooper said, as cited by the analysts in a Monday report to investors.