Forecasting Drug Price for Reimbursement By Utilizing a Value-Price Relationship, a Case Study in Hormone-Relapsed Prostate Cancer

GPI attended ISPOR last month, in Washington D.C, and had the opportunity to present three research abstracts, including our drug price forecasting study, utilizing a value-price relationship

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GPI attended and presented research at ISPOR, held at the Gaylord Resort & Convention Center, Washington D.C, United States on 15-18 May 2022. GPI presented three research posters, including ‘Forecasting Drug Price for Reimbursement By Utilizing a Value-Price Relationship, a Case Study in Hormone-Relapsed Prostate Cancer‘. The abstract was nominated in the top 5% for the ISPOR research awards, recognising the scientific merit of our oncology research.

ISPOR award

Background & Objective

Due to the different evidence requirements and archetypes of HTA bodies, forecasting the value of a new product is a challenge. Value and price are correlated and can be applied to determine the price of new products. The aim of this study, focused within oncology, was to forecast and validate the price of darolutamide in England, France and Germany using a value framework approach.

  • Health Technology Assessment (HTA) bodies have different evidence requirements to appraise a new product.
  • In England, National Institute for Health and Care Excellence (NICE) utilizes Quality-Adjusted Life Years (QALYs) to determine a cost-effectiveness threshold and support the price setting mechanism.
  • In France, reimbursed price is set by the Haute Autorité de santé (HAS) following rating by the Commission de la Transparence (TC) of
    actual benefit (SMR) and improvement in actual benefit (ASMR) of the product.
  • In Germany, the Gemeinsamer Bundesausschuss (G-BA) assesses additional clinical benefit of the product, which informs price setting
    following a one year free-pricing period.
  • These inherent differences across markets provide a challenge for forecasting the value of a new product using a single methodology. Value and price are correlated and can be applied to determine the price of new products.

Research Details

Conference: ISPOR

Focus Topics: Forecasting Drug Price, Reimbursement, Value-Price Relationship, Drug Pricing, Market Access

Resources: GPI pulse™ Data Analytics Platform, GPI horizon, Price & Market Access Specialists

Poster cover - Forecasting Drug price for reimbursement by utilising a value-price relationship, a case study in hormone-relapsed prostate cancer

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