Value-based pricing: the wrong medicine for the nation?

Julia Manning & Barbara Arzymanow

This paper explores the potential impact of introducing an additional pricing scheme for new medicines on patients, who are usually blissfully unaware of pricing negotiations. It takes the approach of asking what concerns would the public still have if a new system of “value-based pricing” were introduced, despite the negotiations and new promises to include patients further in deliberations.

In no way do we seek to disparage the hard work undertaken by researchers, health economists and civil servants who have been tasked with trying to make ‘value- based pricing’ (VBP) work. Our purpose is twofold: to ensure that people have as rapid access as possible to new medicines in the UK, and to give the UK the best possible environment to continue to attract research and development across all life sciences.

This publication was not sponsored by any external organisation. The views expressed are those of the authors and they are responsible for the accuracy of the content.   

Impact:

• Feature in Financial Times
• Built on our previous VBP publications with LSE (London School of Economics)
• In July 2013 it was announced that NICE would oversee pricing of medicines but no details of what aspects of VBP thinking will be included as yet available.
• In October 2013 the government announced the extension of the cancer drugs fund (CDF) [see also Cancer Networks report] which has improved access to drugs but is another temporary measure. Notably, all new cancer drugs assessed by NICE this year have been turned down and can only be accessed via an appeal to the CDF.