The Journal of Medical Economics - Special Issue
About this Special Issue
The Six Delta platform for outcome-based contracting for pharmaceuticals
This series of articles outlines the benefits of outcome-based contracting for pharmaceuticals. Owing to the high increase in drug prices and the need to reduce overall medical costs in the United States and Europe, payers and drug manufacturers are adopting value-based approaches for drug pricing. This considers the clinical value of a treatment in determining the payback guarantee if the drug fails to achieve the outcomes demonstrated by a manufacturer, but also reward the manufacturer if the drug achieves exceptional outcomes.
Learn more about the Six Delta platform for outcome-based contracting for pharmaceuticals in the authors' editorial here or access the individual articles below.
Pricing methods in outcome-based contracting: δ1: cost effectiveness analysis and cost-utility analysis-based pricing
Six Delta is a six-dimensional independent platform for outcome-based pricing/contracting. The first dimension (δ1) estimates prices on the basis of cost-effectiveness (CEA) and cost-utility analysis (CUA). The authors describe this dimension’s methodology and present a proof-of-concept application to the treatment of non-small cell lung cancer (NSCLC) with EGFR mutation with osimertinib.
Pricing methods in outcome-based contracting: δ2: willingness-to-pay-based pricing
Pricing methods in outcome-based contracting: δ3: reference-based pricing
Pricing methods in outcome-based contracting: δ4: safety-based pricing
Pricing methods in outcome-based contracting: δ5: risk of efficacy failure-based pricing
Pricing methods in outcome-based contracting: δ6: adherence-based pricing
The sixth dimension (δ6) estimates prices on the basis of adherence to the prescribed regimen, whereby manufacturers provide payers with adherence-enhancing programs and whereby payers implement these programs and provide adherence data to the manufacturer.
Pricing methods in outcome-based contracting: integration analysis of the six dimensions (6 δs)
The six dimensions have been described separately: (δ1) cost-effectiveness analysis and cost-utility analysis-based pricing; (δ2) willingness-to-pay-based pricing; (δ3) reference-based pricing; (δ4) safety-based pricing; (δ5) risk of efficacy failure-based pricing; and (δ6) adherence-based pricing. The final step is to integrate the various dimension-specific pricing estimates into a composite estimate termed the All-Dimensional Price (ADP).