Drug pricing is complex, and its impact on healthcare systems varied. Absent a competitive market, a drug’s price and value may differ.While the Drug Abacus is a good first step as a gauge to align price and value, it will rely on the generation of significantly more safety and effectiveness evidence than currently exists, not only at launch but also post-launch. Moreover, the evaluation of evidence will have to take place in a dynamic setting, i.e., over time, in order to better align price and value. In this respect, pay-for-performance arrangements may be an option in cases in which there is great uncertainty at launch. Here, payers collect real-world data on a drug’s safety and effectiveness post-launch and price is linked to outcomes.
- Why is pricing in the U.S. different?
- How are drugs priced in the US?
- What about R&D and its relation to price?
- Then what?
- But does price = value?
- What are the alternatives?
Read Knowns and unknowns of US drug pricing, medicalxpress, November 11, 2015.
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