New cost-effectiveness model aims to better capture value of medicines to society
No Patient Left Behind’s updated methodology accounts for disease severity, loss of market exclusivity and social value
A biopharma industry-backed organization, No Patient Left Behind, is advocating for adoption of a methodology for assessing pharmaceutical cost-effectiveness that it believes more accurately captures the value of medicines to society than traditional methods. Acceptance of the methodology, which accounts for disease severity, price declines due to the loss of market exclusivity and the social value that accrues as a drug is used to treat successive cohorts of patients, could help calm the furor over drug pricing and preserve incentives for innovation, according to NPLB.
Published on Sept. 6 by NPLB, a non-profit organization comprising biotech investors, researchers, physicians and patient advocates, the report calls out traditional cost-effectiveness analysis methods such as those used by Institute for Clinical and Economic Review (ICER), for failing to capture “important components of social value.” It illustrates the difference between its proposed approach and ICER’s methodology by recomputing the cost-effectiveness of 20 drugs previously assessed by the Institute. ...