Economics of innovation

Market-Driven, Value-Based Advanced Commitment (MVAC) is a new mechanism to help re-direct private-sector R&D investments where they’re needed most. We propose to use MVAC to encourage investments in tuberculosis (TB), which affects 10 million people worldwide. In this blog post, we reflect on the first round of feedback on our consultation draft on MVAC.

OHE Lunchtime Seminar with Pedro Pita Barros on ‘Incentives for R&D, Competition and Intertemporal Effects of Payment Rules for Cures’. To be held on 6 June 2019 from 12 p.m. to 2 p.m.

Current payment and pricing rules for pharmaceutical products do not account for...

Increasingly, scientific advances are delivering new medicines that deliver improved survival and quality of life across multiple treatment indications. Indication-Based Pricing (IBP) has been proposed as a way to better link price with value. In this short Discussion Paper, we outline the major issues including the potential benefits of IBP, potential drawbacks, and considerations for implementation. We then ask for your views. To submit your thoughts, please access the survey which accompanies the Discussion Paper. Consultation closing date: Monday 24th June 2019.

Cole, A., Towse, A. and Zamora, B.

Briefing
May 2019

Increasingly, scientific advances are delivering new medicines that deliver improved survival and quality of life across multiple treatment indications. Indication-Based Pricing (IBP) has been proposed as a way to better link price with value. In this short Discussion Paper, we outline the major issues including the potential benefits of IBP, potential draw-backs, and considerations for implementation. We then ask for your views.

To submit your thoughts, please access the survey which accompanies the Discussion Paper.

Consultation closing date: Monday 24th June 2019.

Meet some of the OHE team at the International Society for Pharmacoeconomics and Outcomes Research (ISPOR) 2019 conference in New Orleans, 18-22 May.

Economics of Innovation

The development of innovative health technologies is essential for improving the quality and efficiency of health care provision. The marketing of innovative medicines, diagnostics and other medical technologies is required to address public health priorities and to tackle patients’ unmet medical needs, while expediting patients’ access to innovation helps to maximise societal health gains and value.

Brassel, S., Rozanova, O. and Towse, A.

Research Paper
April 2019

The WHO Technical Report: Pricing of cancer medicines and its impacts (“the Report”) was published in order to address requests made in a resolution adopted by the 2018 Seventieth World Health Assembly WHA70.12 on Cancer prevention and control in the context of an integrated approach.

Value-based pricing (VBP) is an efficient method for pricing new drugs. Rate of return pricing could, however, be useful in two cases: treatments for ultra-rare diseases, and ‘cures’ for conditions currently being treated at great expense. Rate of return pricing gives rise to challenges. Two are (i) finding proxy estimates of development costs including failures, and (ii) driving future research towards discovering high-value treatments.

The combination of rising drug costs in the US and increasing financial stress for individual patients has triggered intense national concern. One target has come under particular scrutiny: rebates. A new report published by ICER and the OHE describes how alternatives to the current rebate system offer potential disadvantages as well as potential benefits. It outlines evidence presented to date and key questions that still need to be answered.

Cole, A., Towse, A., Segal, C.S., Henshall, C. and Pearson, S.D.

Research Paper
March 2019

OHE Research Paper 19/02: The combination of rising drug costs in the US and increasing financial stress for individual patients has triggered intense national concern. One target has come under particular scrutiny: rebates. This paper describes how alternatives to the current US rebate system offer potential risks or disadvantages as well as potential benefits. It outlines the evidence presented to date, and the key questions that still need to be answered.

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