IDC Perspective: Real-World Evidence and Drug Pricing in 2022
Description
IDC Perspective: Real-World Evidence and Drug Pricing in 2022
This IDC Perspective discusses real-world evidence and drug pricing in 2022. Prescription drug pricing, especially in the United States, has become a widely discussed issue for patients, private and government healthcare payers, life science companies, and society at large. "As life science companies, private and public healthcare payers, and healthcare providers learn to use RWE to discover the true value of prescription drug therapies, drug prices will increasingly be based on actual outcomes for patients. In the long run, this will benefit all stakeholders in the healthcare ecosystem in the United States and around the world," says Michael Townsend, research director for Life Science Commercial Strategies at IDC Health Insights."While one transitions from a commoditized pricing model to a value-based, pay-for-performance model that typically applies to very expensive drugs, one needs to remember that this is still creating value for only a limited few, as this would be cost prohibitive for the rest. True value will be realized when there exist pricing models that enable access to all. Value can be perceived as quantitative improvement in clinical outcomes for a patient, as quality-of-life improvements for both patients and their caregivers, and as the reduction in health burden or the eradication of disease, at a population health level. Real-world data is a crucial asset to assess this value, and pharma companies need to engage in early dialog with payers to determine what data they need to provide to support pricing decisions," says Dr. Nimita Limaye, research vice president, Life Sciences R&D Strategy and Technology, IDC.
Please Note: Extended description available upon request.
This IDC Perspective discusses real-world evidence and drug pricing in 2022. Prescription drug pricing, especially in the United States, has become a widely discussed issue for patients, private and government healthcare payers, life science companies, and society at large. "As life science companies, private and public healthcare payers, and healthcare providers learn to use RWE to discover the true value of prescription drug therapies, drug prices will increasingly be based on actual outcomes for patients. In the long run, this will benefit all stakeholders in the healthcare ecosystem in the United States and around the world," says Michael Townsend, research director for Life Science Commercial Strategies at IDC Health Insights."While one transitions from a commoditized pricing model to a value-based, pay-for-performance model that typically applies to very expensive drugs, one needs to remember that this is still creating value for only a limited few, as this would be cost prohibitive for the rest. True value will be realized when there exist pricing models that enable access to all. Value can be perceived as quantitative improvement in clinical outcomes for a patient, as quality-of-life improvements for both patients and their caregivers, and as the reduction in health burden or the eradication of disease, at a population health level. Real-world data is a crucial asset to assess this value, and pharma companies need to engage in early dialog with payers to determine what data they need to provide to support pricing decisions," says Dr. Nimita Limaye, research vice president, Life Sciences R&D Strategy and Technology, IDC.
Please Note: Extended description available upon request.
Table of Contents
6 Pages
- Executive Snapshot
- Situation Overview
- Examples of Innovative Value-Based Pricing Strategies
- Challenges Associated with Value-Based Pricing
- Conclusion
- Advice for the Technology Buyer
- Learn More
- Related Research
- Synopsis
Pricing
Currency Rates
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