Summary
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.
Related posts from Medical Xpress
- Oncologists reveal reasons for high cost of cancer drugs in the US, recommend solutions, medicalxpress, March 16, 2015.
- Mayo Clinic physicians ID reasons for high cost of cancer drugs, prescribe solutions, medicalxpress, October 1, 2012.
- FDA panel backs Pfizer drug for kidney cancer, medicalxpress, December 7, 2011.
More information
- US healthcare spending will reach 20% of GDP by 2024, says report, BMJ 2015;351:h4204, 03 August 2015.
- National Health Expenditure Projections, 2014–24: Spending Growth Faster Than Recent Trends, healthaffairs, August 2015.