Michael Pace, Senior Principal, Pricing and Market Access, Commercialisation and Outcomes, ICON
Launching a new drug often requires a compromise between the manufacturer and payer’s objectives and priorities. While ensuring patient access to new drugs is an objective for both parties, payers also need to make certain that new therapies comply with budgetary constraints and that any associated risks of uncertainty are minimised. In this context, contracting represents mutually valuable agreements that address the needs of both the manufacturer and the payer.
Traditional contracting agreements have focused purely on price negotiations. These simple agreements such as, price discounting/rebates, caps and free goods, in themselves are not novel; however, their combination or inclusion in the context of a more complex agreement can be considered in the design of innovative contracting agreements.
When designing a contract, the aim is to find a cohesive solution that meets the needs of the payer while still achieving manufacturer objectives. Sometimes, “traditional” contracting is not sufficient to achieve this compromise, necessitating the adoption of more advanced, and sometimes complex, innovative contracting agreements.
Speakers: Michael Pace, Senior Principal, Pricing and Market Access, Commercialisation and Outcomes, ICON & Guy Sherwin, Lead Consultant, EU Pricing and Market Access, Commercialisation and Outcomes, ICON