Understanding the options for pricing curative therapies

Matthew Majewski, vice president at Charles River Associates' Life Sciences Practice, considers the need for new pricing models in an Expert View column.

As pharma and life sciences companies continue to make progress in the development of many potentially curative therapies including cell and gene treatments, stakeholder groups including manufacturers, patient advocates and payers are working to identify the new pricing models that will be necessary to support patient access. Most experts agree that current reimbursement models will need to be reconfigured to accommodate these therapies, and that the clock is ticking.

High-cost curative therapies introduce many new considerations related to pricing and reimbursement. Many will have narrow treatment windows and small patient populations that could restrict the opportunity for manufacturers to maximize commercial success. There may be significant costs for hospital procedures and protocols associated with administration of these therapies. In addition, the introduction of many new high-cost therapies in a condensed period could lead to a major spike in overall healthcare costs.