Posted by Michael Wonder on 29 May 2019
Executives grapple with new realities in drug pricing
28 May 2019 - Key biopharmaceutical markets outside the United States are focusing on drug prices, and the increased use of biosimilars is a key part of their strategy, according to a report from the PwC Health Research Institute.
In addition, pricing models for drugs are changing, reflecting the realities of trying to balance access and affordability for innovative and even curative therapies while setting pricing decisions that create stability and future development.
The report says 6 pricing models are being used to account for these changes. Two of them—financial risk-based contracts and health outcomes contracts—are examples of value-based contracts. These types of contracts are being aided by new technology for monitoring patients and gathering health data so that payment can be guided by real-world evidence, as opposed to results from clinical trials.
The other 4 models are mortgage models, subscription or “Netflix” models, indication-specific pricing, and volume-based purchasing.
