The Price of Global Health

The Benefits and Misconceptions of Indication-Based Pricing

Posted by Ed Schoonveld on Fri, Jul 21, 2017

A recent Wall Street Journal article raised the challenge related to Novartis’ high-cost orphan drug Ilaris, which may have clinical potential in a broader use as a cardiovascular drug. For the cardiovascular use, the company would have to charge a significantly lower price to gain adoption in the market. It’s a fairly extreme example of a common situation where drugs with potential uses in different indications, different population sizes and different competitive price levels are posing a tough dilemma for the drug company. Indication-based pricing, allowing for a different price across diseases treated, would provide a solution to this problem and would, in some cases, allow for earlier and broader patient availability of new prescription drug treatments.

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Topics: Pharma, Market Access & Pricing, Drug pricing, Pharmaceutical Pricing, pharmaceuticals, regulations, multiple indications, 2017 Fair Pricing Forum, fair pricing, indication-based pricing

2017 Fair Pricing Forum: The Message for Pharma CEOs

Posted by Ed Schoonveld on Tue, Jul 18, 2017

This article was originally published in the June 2017 issue of In Vivo.

Drug pricing continues to be a social and political dilemma that forms a divide between the drug industry on one side and medical community, governments and patients on the other side. Frustrations over the high cost of prescription drugs have resulted in a groundswell of government and private initiatives to increase transparency, analyze value through various frameworks or directly control pricing.

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Topics: pharmaceutical industry, Pharma, R&D, 2017 Fair Pricing Forum, World Health Organization, WHO, value-based pricing, fair pricing, price transparency

Five Observations From the 2017 Fair Pricing Forum

Posted by Ed Schoonveld on Mon, May 15, 2017

In May, I joined various members of governmental organizations, patient organizations and the life sciences industry at the 2017 Fair Pricing Forum, an invitation-only meeting to discuss “fair pricing” for medications in Amsterdam. Organized by the World Health Organization and the Dutch Ministry of Health, the meeting prompted a productive dialogue among stakeholders but also revealed a worrisome gap in the overall perception of the drug pricing discussion. The pharmaceutical industry’s viewpoint was widely underrepresented, with attendance heavily weighted toward governments and activists, and only a small industry delegation.

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Topics: ZS Associates, generics, ZS, Pharma, Ed Schoonveld, R&D, 2017 Fair Pricing Forum, World Health Organization, WHO, value-based pricing, fair pricing, price transparency, antimicrobial drugs

Is the FDA Stepping Into the 21st Century?

Posted by Ed Schoonveld on Wed, Mar 22, 2017

Until recently, the pharmaceutical industry has been severely limited in its ability to communicate with customers regarding the economic impact of new drug treatments. Under the 21st Century Cures Act, which was approved with broad bipartisan support and signed by then-President Barack Obama in December 2016, the pharmaceutical industry has a much broader mandate to discuss healthcare economic information with payers and formulary decision makerswith some fairly reasonable requirements.

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Topics: ZS Associates, ZS, Ed Schoonveld, pharmaceuticals, FDA, 21st Century Cures Act, clinical trials

US Drug Pricing: Pushing Beyond Soundbites to Offer Real Solutions

Posted by Ed Schoonveld on Wed, Mar 15, 2017

Drug pricing is a recurring topic amongst U.S. politicians and the media, and it experiences the occasional erratic peak in attention when President Trump aims his early morning tweets at pharma. It’s a much more complex topic than can be discussed in 140 characters, however, and unfortunately, the pharmaceutical industry thus far hasn’t been able to provide compelling answers to politicians and the public. Some bad actors, such as Turings’s ex-CEO Martin Shkreli, have seriously harmed the industry’s reputation, and pharmaceutical companies now need to act.

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Topics: ZS Associates, ZS, pharmaceutical industry, Drug pricing, Ed Schoonveld

Obamacare’s Repeal: What to Expect

Posted by Ed Schoonveld on Mon, Jan 16, 2017

It has been difficult to predict what repealing and replacing the Affordable Care Act (ACA), the signature legislation from President Barack Obama, will mean for the public and for the insurance and pharmaceutical industries. The lack of Republican consensus behind a single alternative plan and the uncertainty of President-elect Donald Trump’s actions have turned any projection into mere speculation. However, recent Republican steps and political reality are now starting to help clarify what the likely outcome of “repeal and replace” may be.

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Topics: ZS Associates, Medicare, insurance, ZS, Ed Schoonveld, health plans, Affordable Care Act, healthcare, Medicaid, prescription drugs

Brexit’s Impact on the EU’s Drug-Pricing Climate

Posted by Ed Schoonveld on Thu, Jun 30, 2016

Surprised and stunned by the U.K’s vote last Friday to exit the European Union, the world is experiencing a collective panic. However, currency and stock devaluations have mainly been driven by uncertainty rather than solid projections of corporate performance gaps, all of which has been further enhanced and inflamed by the media in their constant quest for better ratings.

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Topics: ZS Associates, ZS, Market Access & Pricing, Drug pricing, Ed Schoonveld, health technology assessment, prescription drugs, Brexit, parallel trade

The UK's Pay-or-Play Solution: A Horribly Flawed Idea

Posted by Ed Schoonveld on Fri, May 20, 2016

We desperately need new anti-infective drugs to avoid life threatening infections! Let’s make that happen by punishing companies who don’t invest in R&D for these specific drugs.

No, this is not a bad joke, but rather a slightly paraphrased recommendation of a U.K. government-commissioned Review of Antimicrobial Resistance (AMR). Let’s look at the details.

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Topics: ZS Associates, Innovation, ZS, Ed Schoonveld, pay or play, R&D, invention, Review of Antimicrobial Resistance, UK, tax solution, AMR

Paper on Drug Costs From American College of Physicians Ignores Economic Reality

Posted by Ed Schoonveld on Wed, Apr 06, 2016

Providing a view of the issue of rising drug costs, plus specific positions and recommendations for government action, the American College of Physicians (ACP) published a position paper on March 29, 2016, titled “Stemming the Escalating Cost of Prescription Drugs: A Position Paper of the College of the American College of Physicians.”

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Topics: ZS Associates, ZS, pharmaceutical industry, Drug pricing, Ed Schoonveld

Re-Pricing Rules in Japan Slash Prices for “Huge Sales” Drugs

Posted by Ed Schoonveld on Mon, Feb 01, 2016

At a recent meeting of the Japanese Central Social Insurance Medical Council (Chuikyo), substantial price cuts for drugs with “huge sales” were discussed. These cuts are to be implemented in April and will impact four brands:

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Topics: ZS Associates, ZS, pharmaceutical industry, Drug pricing, Ed Schoonveld, Pharmaceutical Pricing

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