Annuity payments for costly one-off drugs is no magic bullet

April 11, 2019

Annuity payment models are increasingly being considered in certain markets as a means of financing high priced, potentially curative treatments like cell or gene therapies. However,  such models fail to address systemic pricing and reimbursement problems and could threaten the financial viability of some biotech companies. The number of game-changing treatments set to come to the market is increasing and payers are facing the growing challenge of how to pay for them. These products include cell and gene therapies that treat rare diseases and come with very high prices. The issue is becoming ever more pressing, with some 34 gene therapies currently in pivotal trials, for example. The idea of funding these one-off therapies through a series of scheduled payments, rather than one large lump sum at the time of administration, is increasingly being explored by payers and companies, Walter Colasante said in an interview with the Pink Sheet
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