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Rising-up Part 1 – The rise of a payer dominated market

European Biopharmaceutical Review, October 2013 Across the globe it has become essential for payers to gain control over dramatically rising healthcare costs. This trend, in combination with three other key drivers, is resulting in the decline of the ‘free-pricing’ of pharmaceuticals and the rise of value-based pricing, particularly in the European Union (EU). In this article we discuss each of these factors and highlight how recent developments suggest that value-based pricing is coming to the US, the world’s largest pharmaceutical market. Part two of the series focuses on a practical methodology for integrating payer needs into R&D decision making.