Will pay-for-performance boom in U.K.?

Can we look for more risk-sharing discounts for pricey drugs in the U.K.? If the government's new pharma pricing scheme is any indication, yes we can. In the wake of several high-profile arrangements--think Johnson & Johnson's pay-for-performance Velcade deal, under which the company rebates the drug's cost if a patient doesn't respond; or Roche's rebate on Tarceva, which brings its cost in line with rival Taxotere, made by Sanofi-Aventis--the PPRS is codifying risk-sharing deals.

Since the PPRS was released a few months ago, the U.K. health authorities have been in talks with several companies about new pricing schemes for their costly drugs, In Vivo reports.

Thing is, the risk-sharing schemes to date were spawned by a "No" from the National Institute of Clinical Excellence. NICE said Velcade wasn't worth the cost, so J&J offered the rebate for patients who don't respond. And so on. Now, NICE says it wants drugmakers to propose those sorts of deals up front, rather than as a last resort.

Obstacles? It's already complicated to administer rebates and track outcomes, as In Vivo notes. If every high-priced drug has different terms and conditions around it, then how will NHS and drugmakers keep track. NICE may have to come up with a few standardized deal templates to get a sizable number of pharma companies to play.

- read the In Vivo story

Suggested Articles

Post-Tesaro buyout, don’t expect GlaxoSmithKline to spring for more commercial-stage oncology products anytime soon.

Already a fast-growing blockbuster, Novo Nordisk's injectable Ozempic won a major heart-helping FDA nod that could bode well for its oral sibling.

Bayer's new Vitrakvi for tumors with NTRK gene fusions is meeting skepticism in England and Germany, where cost watchdogs on Friday rejected it.