Indications of value

Express Scripts Holding Co. is working with companies to test not only an indication-based pricing model for drugs approved to treat more than one cancer, but also a handful of new tools that tie clinical performance to the price the pharmacy benefit manager will pay.

Under a pilot, Express Scripts will pay different prices for a single drug depending on how it performs in different tumor types. The pilot will apply to a select group of oral and self-injectable cancer drugs on its National Preferred Formulary for plan year 2016...