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Value-based pricing in pharmaceuticals


Value-based pricing (VBP) of pharma products has exciting potential to help improve patient outcomes – at an affordable cost. The concept of VBP has been around for some time, but healthcare stakeholders are still grappling with what it means from a practical implementation perspective.

Or hope?

We believe that, by following these three key tips below, pharma companies and payers can unlock the "value" component of VBP: 1. Keep it simple: VBP can be highly complex, so an emphasis on simplicity should help all parties more accurately measure the effectiveness of this approach. 2. Focus on appropriateness of care: Choose the right drugs for the right patients at the right time, to give a better chance of positive outcomes. 3. Keep transaction costs at reasonable levels: Both pharma companies and payers may have to invest significantly in VBP, so robust cost management can help deliver an affordable cost of treatment. In this paper, we look at the barriers to implementation and discuss pragmatic ways to achieve successful and widespread adoption.


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