A Rapid Review of the Literature
How do countries balance drug prices and innovation? This latest article via Value-in-Health examines how eight countries around the world factor innovation and 'value' into prescription drug pricing.
The paper reviews the experiences of value-based pricing policies across the United Kingdom, the United States, Canada, Germany, Sweden and France, as well as experiences in Latin America (Brazil and Colombia) - reviewing regulations, strategies, models, and policies implemented.
Researchers identified 929 references by country, with 56 documents meeting the study's inclusion criteria in-relation to entities involved, establishing therapeutic value categories, and drug pricing.
The authors conclude that within the identified literature, there currently exists no methodological guideline or handbook for the implementation of value-based pricing. Each country's experience consists of its own individual approach and exercise.
A critical challenge facing the drug industry when developing balanced pricing strategies is the fact that is there is no single arbiter of product value.