Pricing and Reimbursement

The extended analysis is outlined in the slide presentation in this post.

PharmacoEconomics recently published OHE’s study projecting medicines expenditure in the UK to 2015. The PPRS 2014 Heads of Agreement was announced on 6 November 2013, which outlines the terms of the five-year deal between the pharmaceuctical industry and the government in the UK.

This research varies from other analyses in using a product-level, rather than a macro, approach.

PharmacoEconomics has just published OHE’s study projecting medicines expenditure in the UK to 2015. ( The methodology for this research varies from earlier approaches in using a product-level, or “bottom-up”, approach, rather than a top-down, macro perspective.

Best practices for performance-based risk-sharing arrangements in health care are described in detail in this new ISPOR report, developed by a task force co-chaired by Professor Lou Garrison, University of Washington and Visiting Senior Research Fellow at the OHE, and Professor Adrian Towse, Director of the OHE. The report appeared in late August in Value in Health. The idea of paying only for health interventions that work at least as well as expected is intuitively attractive.

OHE was involved in several sessions at the 9th World Congress of the International Heath Economics Association (iHEA). Prof Adrian Towse, OHE’s Director, and Prof Lou Garrison, OHE Visiting Senior Research Fellow for 2012-13 and a professor at the University of Washington, took part in a session focusing on barriers to utilisation and delivery of health service in developing countries.

A new publication from the Office of Health Economics captures the views of thought leaders from around the world about the scientific and economic climate for drug development by 2022. Based on OHE’s 50th anniversary conference, it reflects the perspectives of payers, regulatory and HTA agencies, academia, the non-profit sector and the biopharmaceutical industry.

In June, OHE’s Jorge Mestre-Ferrandiz participated as a speaker at the Summer Course on the Evaluation of Medicines at the University of Alcalá in Spain. His presentation discussed the nature of innovation in general and the incremental nature of pharmaceutical innovation in particular.

OHE’s participation at the 33rd Meeting of the Spanish Health Economics Association (AES) last week reported the results of four research projects. Jorge Mestre-Ferrandiz, OHE’s Director of Consulting, presented OHE’s recent research on projecting medicines expenditures in the NHS using a bottom-up, rather than a top-down, approach.

Dr Jorge Mestre-Ferrandiz, OHE's Director of Consulting, was a recent guest lecturer at Imperial College London. His comprehensive presentation covered the gamut of issues that influence the rate and direction of R&D for medicines, including regulatory approval requirements, the patent system, the economics of R&D, the roles of the public and private sectors, “push” and “pull” incentives, and the influence of capital markets.

Performance-based risk sharing arrangements for prescription medicines and other treatments are attractive to payers because they promise to base what is paid for a treatment on whether/how well it actually works. Programmes typically include data collection and either implicitly or explicitly link pricing, reimbursement and/or revenue to what the data show.

Medicines account for less than 10% of total NHS expenditure in the UK. Because spending on medicines is easy to separate out, however, this sector continues to come under particular scrutiny in efforts to manage costs. Forecasting spending on medicines can be useful in planning NHS resource allocation.


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