Bernstein Analyst Considers Impact of ICER Analytics in Lowering Prescription Drug Prices

Analyst Ronny Gal of Bernstein put forth an investor note where he discussed methods that could bring down high prescription drug prices. He noted that the two main methods by which prices could be controlled are value-based pricing and using an international pricing index. He also noted that the Institute for Clinical and Economic Review (ICER)’s Analytics database could offer a quantitative measure of a drug’s value.

Gal remarked, “When it comes to the biopharma industry, the main industry-specific issue is drug prices in the US… In looking at the ICER database, we realized the data set can be used as an in-depth, independent, objective, and transparent, systematic analysis of how fairly individual companies set US prices. Further, the database offers quantitative targets to what prices should be. Thus, it offers an actionable decision-making tool for ESG investors and offers an alternative way to legislation to pressure the industry to control their prices (boards and CEOs care about their stock prices).” Read more here.

(Source: David Whitrap, ICER Weekly View Newsletter, 5/14/21)