9 June 2016 - The pharmaceutical industry is considering a radical shift in the way it prices drugs in Europe so companies are rewarded for the clinical benefit of treatments rather than the number of pills sold, according to an internal report.

The high price of drugs is straining Europe's cash-strapped health systems and depriving some patients of the latest products, to the concern of manufacturers who argue they can save costs in the long run by keeping people out of hospital.

As a result, companies are looking at a fundamentally different way of getting paid for their innovations, according to the internal report, a copy of which was seen by Reuters.

Its proposed "roadmap for change towards outcomes-based reward systems" will be discussed by the board of the European Federation of Pharmaceutical Industries and Associations (Efpia) on June 16, which groups the world's top drugmakers and national trade associations.

The report is the clearest sign yet that the drug industry is ready to negotiate a new pricing framework with governments and insurers.

For more details, go to: http://www.reuters.com/article/us-pharmaceuticals-europe-idUSKCN0YV0V5