Diagnosis Confirmation Model: A Value-Based Pricing Model for Inpatient Novel Antibiotics

Lum, Ka; Bhatti, Taimur; Holland, Silas; Guthrie, Mark R.; Sassman, Stephanie

doi:10.1177/1073110518782917

Cited by 6 publications

(2 citation statements)

References 10 publications

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“…This requires serious consideration of the implications of personalized medicine on drug repositioning. While the classical drug pricing model follows a shotgun approach with a wider customer base [4], the emergence of highly-targeted drug therapies will require new pricing strategies to address the case for drug repositioning, such that a highly-targeted drug in a small eligible patient population will carry a much higher probability of being effective. Given the power of regulatory agencies and the role of reimbursement mechanisms to control drug pricing, it is important to redefine and quantify the value of these seemingly new emerging and redesigned therapies, especially, in the context of the probable absence of reference price points.…”

Section: Personalized Medicinementioning

confidence: 99%

Impact of Precision Medicine on Drug Repositioning and Pricing: A Too Small to Thrive Crisis

Tiriveedhi

2018

JPM

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The pricing of targeted medicines continues to be a major area of contention in healthcare economics. This issue is further complicated by redefining the role of molecular testing in precision medicine. Currently, whilst pricing of clinical laboratory diagnostics is cost-based, drug pricing is value-based. The pricing for molecular testing is under pressure to change the traditional business model, for it has a critical subsidiary role in determining the final value of targeted medicines. The market size for drugs is reduced by molecular testing when patients with the same disease are stratified based on their genetics, it is critical to determine the value of this new enhanced drug specificity to realize its full pricing potential. However, these value-based pricing strategies require a careful understanding of changing market conditions, especially, in the context of stratified patient segments made possible by precision medicine. In this article, we discuss the various factors impacting pricing decisions, and consider evolving economic trends in precision medicine.

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Section: Personalized Medicinementioning

confidence: 99%

Impact of Precision Medicine on Drug Repositioning and Pricing: A Too Small to Thrive Crisis

Tiriveedhi

2018

JPM

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“…This would also create flexibility to take into account the different implementation challenges created by the global diversity in health systems. In this view and as an example, Lum et al 15 present another pull incentive called the diagnosis confirmation model (DCM), which incorporates value-based pricing and could be implemented for new antibiotics addressing hospital-acquired resistant infections in markets of high-income countries.…”

Section: Pull Incentives: How Would Successful Antibiotic Innovation mentioning

confidence: 99%

Stimulating Research and Development of New Antibiotics While Ensuring Sustainable Use and Access: Further Insights from the DRIVE-AB Project and Others

Bettiol¹,

Hackett²,

Harbarth³

2018

J. Law. Med. Ethics

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Global discussions are ongoing on how to stimulate antibiotic research and development in order to provide patients with new antibiotics able to address the challenges of antimicrobial resistance. In this supplement, we present nine articles derived from the research performed as part of the Innovative Medicine Initiative-funded DRIVE-AB project and others. These publications provide new evidence and arguments in the debate around economic incentives to stimulate antibiotic innovation, including characteristics, implementation and governance.

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Drug pricing models, no ‘one-size-fits-all’ approach: a systematic review and critical evaluation of pricing models in an evolving pharmaceutical landscape

Manders,

van den Berg,

de Visser

et al. 2024

Eur J Health Econ

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Access to new medicines is crucial for patients but increasingly sparks discussion due to high prices. Simultaneously, the growing emphasis on specialized products and uncertainty surrounding the long-term effectiveness of new drug classes brought to the market underscore the need for innovative pricing approaches. A systematic literature review of pharmaceutical pricing models, accompanied by a critical appraisal, was conducted to offer insights contributing to novel approaches balancing sustainable pharmaceutical innovation with affordability and accessibility for patients. Six different pricing models are identified: value based pricing, basic cost-based pricing, and four more comprehensive pricing models incorporating numerous elements: the cancer-drug-pricing model, AIM model, (Nuijtens) discounted cash flow, and the real-option rate of return method. Although there are many similarities among the models, each has unique assumptions for implementation. For instance, all models except for the standard incremental cost-effectiveness ratio and basic cost-based pricing consider the number of eligible patients and the remaining patent period. Only the AIM model and the Nuijtens discounted cash flow model use lump sums. Both the latter and the real-option rate of return method explicitly include the cost of capital as a major cost-based component. Recognizing the diverse applications of each model highlights the need for more differential and dynamic pricing tailored to the characteristics and therapeutic areas of each drug. Additionally, the study underscores the importance of cost transparency in achieving this goal. Consequently, these findings can help stakeholders develop sustainable and affordable drug pricing mechanisms that address the complexities of the ever-changing pharmaceutical landscape.

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Diagnosis Confirmation Model: A Value-Based Pricing Model for Inpatient Novel Antibiotics

Cited by 6 publications

References 10 publications

Impact of Precision Medicine on Drug Repositioning and Pricing: A Too Small to Thrive Crisis

Impact of Precision Medicine on Drug Repositioning and Pricing: A Too Small to Thrive Crisis

Stimulating Research and Development of New Antibiotics While Ensuring Sustainable Use and Access: Further Insights from the DRIVE-AB Project and Others

Drug pricing models, no ‘one-size-fits-all’ approach: a systematic review and critical evaluation of pricing models in an evolving pharmaceutical landscape

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