Posted by Michael Wonder on 19 Nov 2020
Consideration of value-based pricing for treatments and vaccines is important, even in the COVID-19 pandemic
19 November 2020 - Prices send signals about consumer preferences and thus stimulate producers to make more of what people want. Pricing in a pandemic is complicated and fraught.
The policy puzzle involves balancing lower prices to ensure access to essential medications, vaccines, and tests, and adequate revenue streams to provide manufacturers incentives to make the substantial, risky investments needed to develop products in the first place.
We review alternative pricing strategies (cost-recovery models, monetary prizes, advanced market commitments) for coronavirus disease 2019 (COVID-19) drugs, vaccines, and diagnostics.
