What could be in store for the value and access landscape?

Posted by Richard Secker-Johnson on Tue, Apr 07, 2020

While the immediate impact of coronavirus on the pharmaceutical industry is evident, one area of uncertainty is how the virus will alter the landscape for the pricing and access of medicines in the longer term. Much of this impact will likely be linked to the macroeconomic effects of coronavirus, where we can speculate that changes in the size of economies as well as reprioritization of healthcare spending may alter payers’ ability and willingness to pay for medicines overall, and also for certain diseases and classes of medicine. However, another significant factor could be the impact of the virus on the value and access policy landscape. While there’s still uncertainty around how these policy changes could develop, we can look to some of the immediate global reactions to coronavirus that may serve as leading indicators of potential mid- to longer-term policy change.


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The WHO Report and Access to Cancer Medicines

Posted by Ed Schoonveld on Tue, Feb 05, 2019

The World Health Organization’s recently published report, “Pricing of Cancer Medicines and its Impacts,” has elevated the issue to the agenda of the WHO’s executive board and is likely to ignite a lot of debate and some potential actions. While the report raises some very legitimate concerns related to access to anti-cancer drugs for patients, it also falls short of understanding the pharmaceutical industry environment. Rather than simply blaming the industry, it would be more productive to understand what’s standing in the way of collaboration to address patient needs and then jointly try to develop realistic programs to resolve it.


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Paying for Gene Therapy

Posted by Ed Schoonveld on Wed, Jun 27, 2018

Recent advancements in gene and cell therapies have raised both excitement and anxiety in the global medical community. Luxterna (voretigene neparvovec-rzyl) and CAR-T therapies Kymria (tisagenlecleucel) and Yescarta (axicabtagene ciloleucel) have provided potential cures for a significant share of patients with just a single treatment. However, that single treatment, with amazing patient value delivered over years or even decades, also requires a single payment under our current healthcare funding mechanisms. This is causing some additional complexities in an already complex and sensitive prescription drug pricing environment.


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European Drug Pricing Alliances: Force or Farce?

Posted by Ed Schoonveld on Thu, Mar 01, 2018

Affordability of health care for an aging population, the emergence of innovative drugs with promising impact on patient lives and the continuing concerns over prescription drug costs have resulted in a deluge of political attention to drug pricing around the world. Immediately following the launch of Gilead’s Sovaldi, European governments declared an intent to more intensely collaborate on drug price negotiations. The Netherlands, Belgium and Luxembourg (later joined by Austria) created an alliance to jointly negotiate with the pharmaceutical industry. Today, the landscape has evolved further. What are the implications of pricing alliances for pharma companies? Will this evolve to one European price negotiation? Or will it disintegrate as countries fail to agree on common standards? Let’s analyze.


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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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