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Value based pricing: data analysis and presentation at ISPOR 2018

Value HEMAR Publication
07 june 2019

There is increasing debate over price and value of innovative medicines, in particular for orphan medicinal products (OMP). We conducted a descriptive exploratory analysis of OMP prices, costs and their driving attributes.

Project Highlights

  • Customer: Own project
  • Main Goal: Value based pricing: Data analysis on OMP prices, costs and their driving attributes
  • Main Result: Poster presentation at ISPOR 2018

Approach

We selected 15 high-cost (>100k€ annual treatment cost per patient), ultrarare (<15/100,000) OMPs, excluding oncology products, reimbursed in France, Italy, UK, Germany or Spain in the last 10 years. We investigated:

  • ex-factory price (price) and annual treatment cost (cost) elasticity
  • the relationship between price, cost and estimated total budget impact (budget)
  • Impact of disease (prevalence) and product (first in class, existence of a comparator, pharmaceutical form, incremental QALY) attributes on price, cost and budget


Results

Our preliminary findings suggest OMP value drivers that are implicitly and consistently taken into consideration by authorities and companies, with financial considerations acting as limiting factor to price and cost premiums. Further research should focus on extending the dataset for comparable OMPs as per our methodology, as the heterogeneity of OMPs as well as time-related factors explain the lack of results in previous studies.

ISPOR poster

DRIVERS OF ORPHAN MEDICINAL PRODUCT VALUE, PRICE AND COSTS - A PRACTICAL EXPLORATORY ANALYSIS

See poster