Bernstein Analysts Say Value-Based Pricing System Feasible; ICER Assessments Could Lower Pharma Revenue by 15%

One proposed method that could reduce drug prices is the use of a value-based system. A recent report by Bernstein analysts argues that using value assessments, such as those developed by the Institute for Clinical and Economic Review (ICER), would lower costs while ensuring the success of pharmaceutical companies. The report notes that such a policy would lower pharma revenue by 15%.

“We are not sure adoption of [ICER value-based pricing] would be such a terrible outcome for pharma… We would argue that price setting based on some determination of value would have to be part of any long-term solution to US drug pricing.” Read more here.

(Source: John Wilkerson, Inside Health Policy, 5/20/21)