Former Pfizer global research and development president John LaMattina writes in a column published on Forbes value-based pricing contracts in the pharmaceutical and biopharmaceutical industries should become the new norm.
LaMattina points to recent value-based agreements implemented by Amgen and Novartis which make payment by the patient contingent upon their drugs’ effectiveness. The contracts involve Amgen’s cholesterol-lowering drug Repatha, and Novartis’ Kymriah, a cure for childhood acute lymphoblastic leukemia
“Right now, actions like these by Amgen and Novartis are exceptions,” LaMattina writes. “That should be changed.
“New drugs and gene therapies designed to treat cancer, rare diseases, etc. are justifiably demanding high prices,” he added. “However, if they don’t work, payments shouldn’t be required.”