European Biopharmaceutical Review, January 2014
Payers worldwide are under increasing pressure to reign in continuously rising healthcare costs. In this article, we will discuss a methodology that pragmatically integrates payer needs into R&D decision-making, and highlights a project’s future sales-at-risk within various payer scenarios. This then allows for the cost-benefit evaluation of various options which can mitigate this risk. Furthermore, the methodology can be used to answer important practical questions such as; what is the estimated maximum sales value of a particular patient segment in the seven major markets? How would this change upon introducing a value-based pricing system into a particular market? This article follows on from part one of the series which outlines the drivers of a payer dominated world.