Evidence-Based Valuation of Pharmaceuticals: Proving a Price in Oncology
Increasingly, payers around the world are making decisions on healthcare products and services based on the value they deliver in the real-world. Yet, the healthcare community is undecided on how to convert health benefits to monetary value. This is particularly troubling in oncology as the price of innovative therapies are generating media coverage and public outcry.
IQVIA has developed what is proving to be a robust, reliable pricing model that optimizes price for the healthcare system. This evidence-based valuation (EBV) model estimates the price of a drug based on its perceived value by various stakeholders, and is fortified by proof points that quantify the differentiation of the new agent from a selected comparator.
The EBV model not only estimates the value-based price range for the new medicine, but it also identifies the key product attributes that drive value at the product-level and market-level. Finally, it elucidates the evidence required to support those value claims. This framework can thus inform the evidence generation from early clinical development through late-phase research such that studies can be designed around the endpoints that are valued the most by stakeholders. The EBV model can also underpin an evidence platform that is designed to generate real-world, real-time, longitudinal data and insights to optimize shared value across stakeholders over the lifetime of the asset.
Our EBV model has been used across a variety of therapy areas – including oncology - Therapeutic Innovation & Regulatory Science - and has the potential to support value-based healthcare systems more broadly as we seek a more transparent, evidence-based, and consistent method for determining value in healthcare.