Researchers’ Work from University of Pompeu Fabra Focuses on Health Economics and Policy (Price Models for Multi-indication Drugs: A Systematic Review)

2019 SEP 30 (NewsRx) -- By a News Reporter-Staff News Editor at Cancer Vaccine Daily -- Current study results on Health Economics and Policy have been published. According to news reporting originating in Barcelona, Spain, by NewsRx journalists, research stated, “Marketing of new and existing drugs with new indications used alone or in combination is increasing. To identify the advantages and disadvantages of indication-based pricing (IBP) systems for such drugs from the standpoint of economic theory, practical applications and international experiences.”

Financial support for this research came from F. Hoffmann-La Roche.

The news reporters obtained a quote from the research from the University of Pompeu Fabra, “We conducted a systematic review of published articles and reports using six bibliographic databases: PubMed, ASCO, Scopus, DARE, HTA and NHS EED. We also conducted a search of gray literature in Google Scholar. The same search terms were used as in Towse et al. (The debate on indication-based pricing in the U.S. and five major European countries. OHE Consulting Report, London, 2018). Articles and reports published from 1 January 2000 to 30 September 2018 were included. A total of 26 studies met the inclusion criteria. There are three main types of IBP: different brands with different prices for each indication, an averaged single price for all indications and a single price with differential discounts. The studies indicate that IBP systems are premised on the idea that charging a different price for different indications reflects the differences in their value and in social willingness to pay for each one and for the investment in R&D based on the indication’s incremental clinical benefit. Some argue that a uniform price reduces access and increases the price for lower-value indications, while others contend that if IBP sets prices at the maximum threshold of social willingness to pay for each indication, all surplus is transferred to the producer and consumer surplus is reduced to zero. No practical applications of pure IBP were found. Single pricing for drugs is the most prevalent approach. The system that most closely approximates an IBP model consists of agreements that are generally confidential and linked to risk-sharing agreements. There are no applications of pure IBP systems and their practical consequences are therefore unknown.”

According to the news reporters, the research concluded: “More economic theory-based assessments of the pros and cons of IBP and studies different from reviews are needed to capture their intricacies and specificities.”

For more information on this research see: Price Models for Multi-indication Drugs: A Systematic Review. Applied Health Economics and Health Policy, 2019;():. Applied Health Economics and Health Policy can be contacted at: Adis International LTD, 41 Centorian Dr, Private Bag 65901, Mairangi Bay, Auckland 10, New Zealand.

Our news correspondents report that additional information may be obtained by contacting C. Campillo-Artero, Center for Research in Health and Economics, Barcelona School of Management, University Pompeu Fabra, Barcelona, Spain. Additional authors for this research include J. Puig-Junoy, J.L. Segu-Tolsa and M. Trapero-Bertran.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s40258-019-00517-z. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

The publisher of the journal Applied Health Economics and Health Policy can be contacted at: Adis International LTD, 41 Centorian Dr, Private Bag 65901, Mairangi Bay, Auckland 10, New Zealand.

(Our reports deliver fact-based news of research and discoveries from around the world.)