The impact of Value-Based Pricing (VBP) vs International Reference Pricing (IRP) on innovative drugs in the US

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 topics, and took part in a live panel discussion ‘What Is the Preferred Approach to US Drug Pricing Reforms: International Reference Pricing or Value Based Pricing?‘. The panel discussion was based on the collaborative abstract poster, looking at the impact of value-based pricing (VBP) vs International Reference Pricing (IRP).

Background & Objective

The “free market” policy for price setting in the US contrasts with the highly regulated markets of other developed countries where price is determined through defined processes like health technology assessment frameworks that generally support value-based pricing (VBP).

Both Republican and Democrat administrations have campaigned to lower prescription drug costs, including proposals to allow Medicare to negotiate drug prices, reimportation of drugs from Canada, and international reference pricing (IRP), whereby drug prices are tied to those set in foreign markets, among others.

While studies have examined the potential impact of broad reforms, few have assessed how certain proposed policies would compare to each other with regards to reducing drug prices in the US.

Research Details

Conference: ISPOR

Focus Topics: Value Based Pricing (VBP), International Reference Pricing (IRP), US Drug Pricing, Market Access

Resources: GPI pulse™ Data Analytics Platform, GPI consulting, Price & Market Access Specialists, Partners and external sources.

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This research, and all of our research, utilise data from our analytics platform, GPI pulse™.

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