Although outcomes-based pricing remains in its infancy, the Institute for Policy Innovation’s Merrill Matthews writes in an article published on The Hill, it remains a promising solution to combating high drug prices.
Matthews says the payment model could help address concerns about high-cost gene therapies which look to cure rare and debilitating diseases.
“Accounting firm KMPG reports that some 25 branded drugs are currently in some form of value-based contract in the U.S.,” he writes. “Drug innovator Novartis was one of the early adopters but Amgen, Sanofi and AstraZeneca are also engaged.”
Avalere has said the three key areas prime for outcomes-based deals so far are cardiovascular disease, infectious disease and oncology, according to the article.