U.S. Presidential Mandate on Value-based Drug Pricing: Moonshot or Wormhole?

What’s old is new again, and value-based drug pricing is anticipated to be the cornerstone of a soon-to-be-released U.S. presidential executive order on drug pricing. Building on consultation with industry and government experts, the executive order is the policy follow-up to statements from President Trump’s Jan. 11 press conference promising to “create new bidding procedures for the drug industry because they’re getting away with murder” that will “save billions of dollars over a period of time.” Simply by placing the terms value and pricing in proximity, the initiative generates hope that drugs will become a better value for patients and that recent examples of exploitive pricing (e.g., Daraprim, EpiPen) don’t become a regular occurrence. But is valuebased pricing really a prescription for large-scale savings?

Click here to read the full white paper by Evidera’s Cheryl Ball.