Value-based pricing in pharmaceuticals

The industry is under the public and political microscope, with demands for an alternative to the traditional, sales-led approach to marketing. One payment model receiving increasing attention is value-based pricing (VBP).

Within a VBP arrangement, risk is shared between pharmaceutical companies and payers, which should focus all parties on appropriateness of use and on outcomes.

In this article, we outline the challenges facing VBP implementation, notably the need to define and measure outcomes, and overcome any regulatory and legal barriers. We discuss how to overcome these challenges, and feature a case study.