Biogen over the course of a year developed a framework aimed at forecasting patient outcomes for certain populations using its drugs. The framework sought better value-based pricing deals with payers.
The drugmaker created the framework with the help of historical claims data to establish benchmarks geared toward helping discussions with payers when negotiating deals, Biogen Vice President of Market Access Jen Norton told MM&M.
“When we came to the table, we had a practical solution in place,” Norton said.
According to MM&M, Biogen has four value-based agreements with payers.
Merck, whose involvement with value-based contracts dates back to 2009, has also taken steps to use predictive modeling to develop different value-based contracts.
“This is not a new and emerging field, but we still don’t feel like we had a really good handle on what the optimal ways to structure these contracts were [so that] we’re improving patient outcomes with rational resource optimization,” Susan Shiff, Merck Center for Observational and Real-World Evidence said.