Spotlight on OHE: Value Based Pricing and New Technologies
The OHE has been very active in conceptualising approaches incorporating a broader assessment of the elements of value (often called “value based pricing” or “VBP”), as its publications to date illustrate. During the last quarter of 2012, OHE has been…
The OHE has been very active in conceptualising approaches incorporating a broader assessment of the elements of value (often called “value based pricing” or “VBP”), as its publications to date illustrate. During the last quarter of 2012, OHE has been active in discussions of VBP in a variety of forums.
The OHE has been very active in conceptualising approaches incorporating a broader assessment of the elements of value (often called “value based pricing” or “VBP”), as itspublications to dateillustrate. The OHE Research Paper on operationalising VBP, for example, identifies and analyses the various options for instituting such a system, drawing from examples around the world. The OHE Seminar Briefing on Sweden’s approach to VBP illustrates the effects of particular options in one country.
During the last quarter of 2012, OHE has been active in discussions of VBP in a variety of forums. In October, Jon Sussex participated in a half-day webinar. His presentations outlined the essential elements of any approach to “value based pricing”, including the possible elements of “value” and options for aggregating these elements. The discussion also included how VBP might treat medicines with multiple indications of different “value”.
Adrian Towse was invited by the English Department of Health to chair two workshops on aspects of VBP. In October, he chaired “Wider Societal Benefits (WSBs) for Value-Based Pricing: Technical Workshop,” which discussed methodological issues in incorporating WSB’s into VBP. A November workshop, “QALY Weightings For Value-Based Pricing: Technical Workshop”, focused on evidence relating to society’s differential valuation of health gains based on the particular circumstances in which they are provided.
As gene-based technologies become more common in clinical practice, an aspect of VBP that will become increasingly important is pricing and reimbursement for “co-dependent” technologies. These may include, for example, diagnostic tests that monitor a patient’s response to treatment or “smart” devices that transmit a patient’s data to the GP or other health professional. In April 2012, OHE published a Research Paper reviewing the challenges. More recently, OHE has participated in several discussions about the interplay between VBP and companion technologies.
In September, Adrian Towse participated in a workshop organised by The Centre for Innovation in Regulatory Science (CIRS) that focused on companion diagnostics. His session focused on whether companion diagnostics will become the norm for “personalised” medicine. The discussion centred on what the reimbursement challenges may be for both drug developers and coverage bodies, particularly in the case of new and expensive drug-diagnostic combination therapies that target subpopulations.
In November, at the ISPOR 15th Annual European Congress, Adrian chaired a panel on assessing the value of co-dependent technologies that included OHE’s Martina Garau. Her presentation (see below) discussed methods and processes for coordinating the assessment of diagnostics and treatments and urged that a consistent approach be developed and implemented. This was based in part on an OHE studyfunded by Novartis Molecular Diagnostics.
Access to OHE publications is available free of charge to registered users on this website. OHE’s slide presentations are available at http://www.slideshare.net/OHENews.
 This Research Paper appeared recently, with some modifications, as Sussex, J., Towse, A. and Devlin, N. (2012) Operationalising value based pricing of medicines: A taxonomy of approaches. Pharmacoeconomics. Published ahead-of-print. doi: 10.1007/s40273-012-0001-x. (subscription required)
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