Creating Win-Win Solutions from the Ongoing Drug Cost and Price Debate

Decision Resources
July 24, 2007
31 Pages - SKU: DECR1539959
License type:
Table of Contents Related Reports
In 2007, we are approaching a tipping point in the standoff between drug customers/payers and drug producers, each striving to achieve an advantage in the struggle between drug cost versus drug price. The solution to this struggle between closely aligned yet combative industry forces lies in the creation of win-win solutions that benefi t not only payers and industry but, more importantly, society as a whole.

Questions Answered in This Spectrum Report
  • In today's complex pharmaceutical marketplace and prescription decision-making process, monetary issues
    • now reign supreme. How has the cost/price issue infl uenced the decision-making process of drug customers and health care providers? Of drug manufacturers?
  • A paradox has evolved in today's health care industry: treatment is growing more expensive, but more and
    • more people are demanding to be treated. How is the desire for universal health care coverage confl icting with the reality of the market? What sort of middle ground will emerge with regard to coverage that will satisfy both parties?
  • The advent of knowledgeable and fi nancially motivated customers has irrevocably changed the way in which
    • buyers perceive drug price. What is the perception of drug price in the context of health care costs? How can the pharmaceutical industry infl uence or alter this perception?
  • The path to success in the dynamic between the health care customer and pharmaceutical industry is not
    • through a decisive victory of one side over the other. What changes in the customer/industry relationship will ensure future success for pharmaceutical companies? What new stratagems could be adopted to yield winning solutions for both parties?
Scope
  • Drug cost/price criticisms: critics' emotional and economic positions against perceived high drug costs.
  • The battle lines: entrenched customer positions about health care costs and pharmaceutical industry positions on price.
  • Current cost/price stratagems: strategies used by customers and the industry to manage costs and prices.
  • Value/price concessions: select industry pricing strategies that refl ect a more value-based approach to pricing.
  • Market outlook: methods for creating a win-win pricing environment and our forecast for future customer/industry
    • dynamics.
Please note, the PDF e-mail from publisher version of this report is for a global site license.



Additional Information

List of Key Tactics and Players
Key Tactics and Concepts:
  • Acquisitions and mergers
  • Annuity drugs
  • Authorized generic licenses
  • Best-in-class
  • Biogenerics/biosimilars
  • Brand market life
  • Catastrophic care
  • Compromise and concession
  • Consolidation
  • Cost-containment
  • Cost-effectiveness
  • Cost of time
  • Counterfeit drugs
  • Covert rationing
  • Credibility
  • Customer activism
  • Demand-side controls
  • Direct-to-consumer (DTC)
  • promotion
  • Disease management
  • Drug formularies
  • Drug substitution
  • Effective compromise
  • Evidence-based medicine
  • Exclusive distribution
  • Experience curve
  • First-in-class
  • Generic competition
  • Gold standards
  • Good-faith cooperation
  • Health technology
  • assessment
  • Holistic evaluation system
  • Human rights legislation
  • Indication-based drug
  • reformulation
  • Internet pharmacies
  • Judicial review
  • Legal review process
  • Lifestyle drugs
  • Litigation
  • Lobbying pressure
  • Money-back guarantee
  • Monopsonies
  • Orphan drugs
  • Parallel imports
  • Patent expiry
  • Patent litigation settlement
  • Pediatric formulations
  • Periods of exclusivity
  • Pharmacy benefi t managers
  • Physician prescribing
  • behavior
  • Point-of-care distribution
  • Postcode prescribing
  • Postlaunch cost-
  • effectiveness evaluations
  • Preapproval requirements
  • Price and profi t controls
  • Price premiums
  • Price regulation
  • Primary care trusts (PCTs)
  • Product differentiation
  • Public mass media
  • Reference pricing
  • Reimbursement
  • Reimportation
  • Restructuring
  • Risk-sharing agreements
  • Roll-back legislation
  • Root and branch examination
  • Sliding payment scale
  • Supply-side controls
  • Surrogate markers
  • Tax breaks
  • Transparency
  • Universal health care
  • Value-added products
  • Value for money
  • Value-price concessions
  • Value proposition pricing
Key Players:
  • AAH Pharmaceuticals
  • Alliance Boots
  • Amgen
  • AstraZeneca
  • Bayer
  • Biogen
  • Ciba-Geigy
  • Comparative Effectiveness
  • Board (U.S.)
  • Genentech
  • Genzyme
  • Eisai
  • European Network for
  • HTA
  • Eyetech
  • International Society of
  • Drug Bulletins
  • Institute for Quality and
  • Effi ciency in Health Care
  • (Germany)
  • Johnson & Johnson
  • Medicaid
  • Medicare
  • Merck
  • National Health Service
  • (U.K.)
  • National Institute for
  • Health and Clinical
  • Excellence (NICE)
  • Novartis
  • Offi ce of Fair Trading
  • (U.K.)
  • Pfi zer
  • Procter & Gamble
  • Roche
  • Royal National Institute of
  • Blind People (U.K.)
  • Schering
  • Scottish Medicines
  • Consortium
  • Serono
  • Teva
  • Veterans Affairs
  • Department
 

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