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Price Models for Multi-indication Drugs: A Systematic Review.

Carlos Campillo-Artero1,2, Jaume Puig-Junoy3, José Luis Segú-Tolsa4

  • 1Center for Research in Health and Economics, Barcelona School of Management, Universitat Pompeu Fabra, Barcelona, Spain. carlos.campillo@upf.edu.

Applied Health Economics and Health Policy
|September 17, 2019
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Summary
This summary is machine-generated.

Indication-based pricing (IBP) for drugs is complex. While theoretically valuable, pure IBP systems lack real-world application, with confidential risk-sharing agreements being the closest approximation.

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Area of Science:

  • Health economics
  • Pharmaceutical policy
  • Drug pricing

Background:

  • Increasing marketing of new and existing drugs with new indications.
  • Need to evaluate drug pricing strategies for multi-indication drugs.

Purpose of the Study:

  • To identify advantages and disadvantages of indication-based pricing (IBP) systems.
  • Evaluate IBP from economic theory, practical applications, and international perspectives.

Main Methods:

  • Systematic review of 26 studies from six bibliographic databases and gray literature.
  • Searched for articles and reports from January 2000 to September 2018.

Main Results:

  • Three IBP types identified: differentiated pricing, averaged pricing, and single price with discounts.
  • IBP aims to align drug prices with value and R&D investment per indication.
  • No pure IBP applications found; confidential risk-sharing agreements are the closest model.

Conclusions:

  • Pure indication-based pricing systems have no practical applications, and consequences remain unknown.
  • Further economic theory-based assessments are needed to understand IBP intricacies.
  • Current drug pricing predominantly uses single pricing models.