Understanding the options for pricing curative therapies

April 9, 2018

In this article, published in The Pharma Letter’s Expert View column, Matthew Majewski considers the need for new pricing models. CRA recently reached out to a range of medical and pharmacy directors in the payer community for their perspectives on the impact of high-cost curative therapies. These discussions identified several rapidly emerging concerns:

  • The impact of these therapies on healthcare costs tend to be “front loaded,” with the highest impact felt in the first year following launch. Costs will typically diminish over time as appropriate patients complete treatment
  • Manufacturers may be unable to provide the level of long-term safety and efficacy data needed to position payers to assess the cost effectiveness of a curative therapy over many years
  • The potential budget impact will likely require entirely new and previously untried payment models

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