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European pharma considering medicine pricing shakeup

EFPIA will later this month discuss proposals for a value-based pricing system

Medicines pricing 

The European pharmaceutical industry will later this month discuss proposals for a major shakeup of the way companies price their medicines.

The plans could see the wholesale adoption of a new results-based approach in return for relief from existing drug pricing mechanisms, according to a leaked EFPIA report seen by Reuters.

The trade association's 'roadmap for change towards outcomes-based reward systems' also says external price referencing should be removed and tender processes for patented medicines abolished.

The paper reportedly calls too for curbs on parallel imports, a long-standing bugbear for the pharmaceutical industry.

Noting that the proposals came from a discussion paper drawn up by a working group made up of members from across its membership, EFPIA said it was intended to form 'a conversation about the future'.

Director general Richard Bergstrom said: "As an industry, we acknowledge the affordability challenges faced by healthcare systems, under pressure from rising healthcare demand. Our industry wants to be part of the solution in making medicines more accessible and healthcare more sustainable.

“In the future, we believe we can contribute to more sustainable healthcare systems by developing new pricing models, such as outcomes-based, or value-based contracts.”

He added that this process has already started in a number of countries, but said it was an “evolution not [a] revolution”.

The leaking of the proposals comes as the issue of pharmaceutical prices assumes ever greater importance, driven in part by a wave of innovative, but costly, new drugs and cost-constrained healthcare systems.

Oncology has been under particular focus, with IMS Health warning just last week than rising spending on cancer drugs would lead to tensions between the industry and healthcare payers.

Meanwhile, Germany could soon table unveil a drug pricing shakeup of its own, with discounts on drugs that cross a sales threshold and the replacement of its current 12-month full price policy with a €250m threshold.

Article by
Dominic Tyer

10th June 2016

From: Sales

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