Pricing and Reimbursement

OHE’s Dr Jorge Mestre-Ferrandiz is a visiting lecturer in the Department of Economics at City University London. As part of his 2013 activities, he recently gave a comprehensive lecture on the economics of the market for medicines in the UK. His presentation covers the key issues, from drug development through health technology assessment and market access.

19 March: Jon Sussex will be at BioWales 2013 speaking on the health and wider economic benefits of life sciences research. 21 March: Jorge Mestre-Ferrandiz will give his updated annual presentation on the economics of the market for medicines at City College in London. 21/22 March: Nancy Devlin will be in Singapore with EuroQol colleagues. Until 12 April, OHE is accepting applications for a fixed-term position for an economist. Keep up with the latest!

The reasons for discontinuation of R&D projects in the biopharmaceutical industry are often a matter of conjecture. In a recent presentation to the 25th Annual EuroMeeting of the Drug Information Association (DIA), OHE's Jorge Mestre-Ferrandiz presented the results of OHE research into R&D discontinuations.

Just out in the International Journal of Technology Assessment in Health Care is an important new study that reviews appraisals of breast cancer and colorectal cancer medicines by HTA agencies in a selection of industrialised countries: Australia, Canada, France, Scotland, and the United Kingdom (England and Wales). The aims of the study are to identify the key determinants of decisions and understand the similarities and differences in the requirements of the five agencies.

New requirements for health technology assessment in Europe have important implications for markets and for access to new medicines. At a recent conference, OHE’s Jorge Mestre-Ferrandiz summarised changes implemented or being discussed in pricing and reimbursement/HTA systems in France, Germany and the UK.

OHE has just published a Seminar Briefing by Ulf Persson, head of the Swedish Institute of Health Economics, which reviews experience with the Swedish value based pricing (VBP) system. Prof Persson is a member of the board of the TLV, which is the health technology assessment (HTA) agency in Sweden.

In July, OHE released projections for medicines spending in the UK NHS for 2012‒2015. We have now completed further projections, also for the ABPI, for each of the four UK nations (England, Northern Ireland, Scotland and Wales).

Since 1996, in its yearly PPRS Report to Parliament, the Department of Health in England has published international price comparisons of branded medicines used in the primary care setting. The most recent PPRS Report contains comparisons for 2010. In a report just out, OHE Consulting updates these comparisons for the UK through 2011, using the same methodology as the Department of Health uses in its PPRS reports.

To celebrate its 50th Anniversary, OHE held a conference this week, The Challenges and Economics of Drug Development in 2022, which explored the likely evolution of the key aspects of drug development over the next ten years. The conference was attended by over 100 participants from the public and private sectors; speakers and panellists included leaders from drug regulatory agencies, health technology assessment (HTA) groups, payers, the pharmaceutical industry, private foundations, and academia.

The Economics of Drug Development in 2022 On 8 October, 2012, in celebration of its 50th anniversary, OHE will be holding an important conference to consider what drug development may look like ten years hence, in 2022. The conference will be held in London on Monday, 8 October 2012.

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