Value-based pricing at the time of COVID-19
Consideration Of Value-Based Pricing For Treatments And Vaccines Is Important, Even In The COVID-19 Pandemic...Another insightful analysis by Peter Neumann, Dan Ollendorf and Colleagues...
...Who try to resolve the apparent catch-22 situation of ensuring a reasonably balanced negotiation, one that preserves the public interest as well as its purse, under exceptional circumstances: at the time of a pandemic, when time matters more than ever and the balance of power does not seem to tip in favour of health stewards. As summarised by the authors:
The policy puzzle involves balancing lower prices to ensure access to essential medications, vaccines, and tests, and adequate revenue streams to provide manufacturers incentives to make the substantial, risky investments needed to develop products in the first place.
While cost-effectiveness analyses, HTA mechanisms may help measure or set standards to determine value, there are alternative methods and models to help define the fair price that ought to be paid for vaccines under exceptional circumstances.
Authors single out cost-recovery models, monetary prizes, advanced market commitments and think about other solutions (after all, one of the first innovative Public-Private Partnership model in Egypt in 2007 entices Eli Lilly to build R&D facility, train staff and give away IP to the Governement against a set price and guaranteed volume of sales).
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