The Gaps In Drug Pricing

Does a drug’s price reflect what the drug costs, what the drug is worth, some combination of the two, or something completely different? “The work that’s being done in the space of drug pricing, particularly some of the value-based pricing, indication-specific pricing, some of the novel ideas that are now being considered, are really important steps forward,” suggests Dr. Sean Tunis, Founder and Chief Executive Officer of the Center for Medical Technology Policy, former Chief Medical Officer at the US Centers for Medicare and Medicaid Services, and DIA Global Forum Value & Access Content Editor. “To what degree is that value-based price in any way supposed to be close to or related to what is an economically-viable price from a drug developer perspective, or from an industry perspective? There’s a big gap between, ‘What’s the value-based price’ and what the healthcare system ought to actually pay for something.”