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Multi-indication Pricing: Pros, Cons and Applicability to the UK

Author

Listed:
  • Mestre-Ferrandiz, J.
  • Towse, A.
  • Dellamano, R.
  • Pistollato, M.

Abstract

Multi-indication pricing (MIP) involves setting a different price for each major indication approved for a medicine. As value is likely to differ across major indications, if prices paid for on-patent medicines are to reflect their value, then multi-indication medicines should have different prices across major indication, reflecting different values. A workshop with health care system stakeholders was organised to explore (i) the attractiveness of MIP as a potential solution to the challenge of providing optimal pricing for, and reimbursement of, multi-indication drugs and (ii) the feasibility of implementing MIP in the UK's National Health Service (NHS). The workshop agreed that relative prices should reflect relative value, with prices for any indication not exceeding value, and thus MIP could be a way forward. However, a number of operational challenges need to be overcome. This OHE Briefing contains a summary of the main points discussed at the workshop, together with a summary of the briefing material provided to the participants.

Suggested Citation

  • Mestre-Ferrandiz, J. & Towse, A. & Dellamano, R. & Pistollato, M., 2015. "Multi-indication Pricing: Pros, Cons and Applicability to the UK," Seminar Briefings 001653, Office of Health Economics.
  • Handle: RePEc:ohe:sembri:001653
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    File URL: https://www.ohe.org/system/files/private/publications/418%20-%20Multi-indication%20pricing_0.pdf
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    References listed on IDEAS

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    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, January.
    2. Rejon-Parrilla, J.C & Hernandez-Villafuerte, K. & Shah, K. & Mestre-Ferrandiz, J. & Garrison, L. & Towse, A., 2014. "The Expanding Value Footprint of Oncology Treatments," Consulting Reports 000050, Office of Health Economics.
    3. Chapman, A. & Karlsberg Schaffer, S., 2015. "Assessing the Use of Multi-indication Medicines: A Review of Current Data Capabilities in the UK," Consulting Reports 001595, Office of Health Economics.
    4. Danzon, Patricia M. & Chao, Li-Wei, 2000. "Cross-national price differences for pharmaceuticals: how large, and why?," Journal of Health Economics, Elsevier, vol. 19(2), pages 159-195, March.
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    Cited by:

    1. Towse, A. & Cole, A. & Zamora, B., 2018. "The Debate on Indication-Based Pricing in the U.S. and Five Major European Countries," Consulting Reports 002009, Office of Health Economics.

    More about this item

    Keywords

    Economics of Industry;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health

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