Breakout Session II: Pricing in Pharma and Biotech
Speaker Notes:
· Drivers of cost: drug costs, research and development, pharma cost, etc.
· Patients only pay portion of biological therapies and drugs
·
Pricing and reimbursements for each drug differs – different pricing strategies
· Unrealistic to use a simple model – e.g. Cost-Plus pricing model – because each drug is unique (i.e. patent time period, marginal cost of productions, R&D, insurance, etc.).
· The Fear Chamber dvdrip Pricing is affected by the market and stakeholders and patients receiving drugs
· The current issues facing price structure: A big gray area. Policies and decisions are constantly changing.
· Patient’s greatest asset is information. Patients should leverage resources – domestic and global.
· Another factor that plays into pricing models – currency changes. A common strategy is to assign countries to certain pricing bands (i.e. Country A: US/Europe… Country D: Africa).
· The King and I dvdrip Value of drug is NOT correlated with the price of drugs (this is a bad assumption)
· Orphan Drug Act (1983): Develop drugs for disease that affect fewer than 200,000 people
· In the big scheme – the total expenditure of biotech is small. The benefits are huge for patients with rare diseases (both cost and life).
· The current pricing models cannot be sustained.
o No one has built in control/evaluation
o Everyone will face budget shortfall
o Wider disparities
·
A system change is needed. Torn Curtain psp
· At the end – the bottom line is – this is all for patients. And the question that everyone should be asking is: Does the product work for that patient’s disease?
Audience Notes:
· Question: How does international pricing models such as UK and Asia compare with US?
· Answer: US: Not just cost-effectiveness but also clinical effectiveness. UK’s program such as NICE is based on cost comparison. Canada’s care is universal for health but not for drugs.
· Comment: Very important to know the history of pricing to understand the existence of price disparities.
· Comment: Difficulty of pricing insurance and drugs – the same drug may treat multiple conditions.
