Presentation (CTI)

OBJECTIVES: Value-based pricing is a pricing strategy where the price of a drug or treatment is determined based on the value it provides to patients and the healthcare system. This study examines various VBP strategies on oncology medications with multiple indications. The strategies evaluated include IBP (Indication-Based Pricing), IBP with refund, and WAP (Weighted Average Pricing).
METHODS: We selected Olaparib, Cabozantinib, and Osimertinib as multi-indication drugs for analysis. A cost-effectiveness analysis was conducted for each indication. Following this, prices were aligned with their respective values
RESULTS: The ICERs for Olaparib's second and third indications were respectively 1.8 and 4.1 times higher than for the first indication. For Cabozantinib, the ICER for the first indication was 0.8 times that of the second indication. The ICER for the third indication was 1.5 times higher than that of the second indication. For Osimertinib, the ICER for the second indication was 1.8 times higher than that of the first indication.
CONCLUSIONS: IBP with refund had the lowest budget impact, reducing the cost of low-value indications without increasing the cost of high-value indications. The analysis revealed that IBP with refund is a practical approach under RSA scheme agreements. However, IBP is still a viable alternative for low-value indications that do not reach the threshold of the payer’s willingness-to-pay, by setting the value-based price as the reimbursement benchmark for patients for better accessibility without impacting the budget.