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Value-based Pricing for Pharmaceuticals

Implications of the shift from volume to value


New Issue Brief examines post-reform supply and demand challenges

Health care reform and industry trends are driving pharmaceutical (pharma) companies to rethink strategy in their U.S. pursuits. Value-based pricing—the alignment of incentives between purchasers and manufacturers—is a paradigm shift that calls for companies to provide pharmaceuticals that demonstrate real, measurable value, and to innovate in their approaches to commercialization and pricing.

Value-based pricing for pharmaceuticals: Implications of the shift from volume to value, an Issue Brief from the Deloitte Center for Health Solutions, summarizes what is known to date about value-based pricing and identifies opportunities for additional exploration. The study’s topics include:

  • The impetus for value-based pricing for pharmaceuticals
  • Examples of previous value-based agreements
  • Barriers to implementing value-based pricing for pharmaceuticals
  • Possible benefits of value-based pricing for pharmaceuticals
  • Considerations for stakeholders: pharma companies, health plans (private and public), employers, PBMs, prescribers/health care providers, consumers, and policy-makers (state and federal government)

Successful, widespread implementation of a value-based pricing system is dependent on key actions such as developing and adopting useful and workable value metrics, providing adequate reward for value, and establishing electronic exchange of health information to capture data from the entire consumer experience. All stakeholders must collaboratively work together to help ensure these key actions are achieved.

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