The Office of Health Economics (OHE) and Professor Richard Sullivan from King’s College London have published a new research paper on the “Economics of Innovative Payment Models Compared to Single Pricing of Pharmaceuticals.” This research was supported by an unrestricted educational grant from IQVIA.
The paper explores and critiques existing academic research on the benefits and challenges of setting different value-based prices for the same medicine. It also presents an economic analysis of the introduction of a multi-price model. The authors go beyond the assessment of a single product to explore the impact of competition, including the longer-term impact on patient access, R&D incentives and the implications of increased competition at the indication level. The paper concludes that the longer-term effects of indication based pricing offer optimised incentives for R&D and the potential for increased price competition at the indication-level, ultimately delivering better value to the health system.
Dr Ashley Woolmore, CODE Lead and Senior Vice President IQVIA (formerly QuintilesIMS) said, “This is a thought provoking piece of research that analyses the potential economic benefits of adopting innovative payment models. One of the key objectives of the CODE initiative is to help enable such agreements. We welcome this robust research as an important contribution to the ongoing policy debate. We look forward to playing our part in facilitating the implementation of these new payment models, which are designed to help the healthcare system address the challenges of financial sustainability of cancer treatment.”