If you have not done so already can you please complete the survey below? I plan to publish it online and send it the EMA and NICE at the appropriate time.
Thank you.
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Effects of Uniform Pricing versus Indication-Based Pricing.
In scenario 1, the value of the treatment is relatively retained across indications; in scenario 2, the value is low for indication C,
which affects a relatively large population. |
Chandra & Garthwaite.
The Economics of Indication-Based Drug Pricing. N Engl J Med 2017; 377:103-106.
Excerpts:
...... Pharmaceutical treatments and medical devices often have varying effectiveness depending on the indication for which they’re used: in oncology, for instance, response to a treatment varies with the type of tumor and stage of disease. The advent and proliferation of precision medicine in which biomarkers — whether genomic, proteomic, or structural — identify patients likely to receive greater treatment benefits only increase the range of variability in the effectiveness of the same product.
...... Yet manufacturers traditionally charge the same price for all indications. Recently, there have been calls for “indication-based” pricing systems, in which manufacturers are paid more when treatments are used for indications for which they have higher value (“high-value indications”) and less for indications for which they confer less benefit (“low-value indications”). Supporters hope that such a system will reduce prices for low-value indications but that prices for high-value indications will not increase. This expectation arises from a belief that manufacturers currently set uniform prices according to the value generated for high-benefit indications and somehow get patients who receive lower value to pay the same price.