Overview
With intense pressure on drug prices the pharmaceutical industry is turning to value-based contracts – which link the price of a prescription drug to its clinical or economic performance – to ease the tension. But the use of these new drug pricing models with insurers remains limited, despite an active minority of enthusiastic participants.
Pharmaceutical and life sciences organizations that want to expand the use of value-based payment models will need a higher tolerance for financial risk, regulatory change, and the willingness and flexibility to work in close collaboration with payers, health systems, pharmacy benefits managers and patients.