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Weighing the outcomes

Nature Biotechnology volume 26, pages 173–182 (2008)Cite this article

The emergent healthcare value era, its consequences, and what drug firms need to do about it

Increasingly, payers are aggressively addressing the cost of biologics by rigorously assessing their overall healthcare value, incorporating components of clinical and economic worth. Payers are making decisions about coverage of and access to biologics within a framework that is heavily based on the strength of a biologic's healthcare value proposition—the relationship between the incremental health improvements it produces compared with its incremental cost, all relative to standard-of-care therapies. With biologics' high price tags (in the $10,000–500,000/year range) in mind, payers seek to allow only the most appropriate populations access to these drugs.

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Figure 1: Growth in drug expenditures.
Figure 2
Figure 3: Biotech drugs in the oncology pipeline.

References

  1. IMS Health. IMS Health Reports Global Pharmaceutical Market Grew 7.0 Percent in 2006, to $643 Billion (IMS, Norwalk, CT, USA, March 20, 2007). http://www.imshealth.com/ims/portal/front/ articleC/0,2777,6599_3665_80560241,00.html

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Authors and Affiliations

  1. Michael J. Russo and David Balekdjian are partners at The Bruckner Group, 27 Water Street, Suite 409, Wakefield, MA 01880 (http://www.brucknergroup.com), a strategy consulting company. The Bruckner Group is an industry leader in healthcare value strategy, assisting pharma and biotech executives in developing business models, enterprise-wide processes and individual drug strategies that result in products with high healthcare value, meeting the needs of patients, physicians and payers. dbalekdjian@brucknergroup.com,

    Michael J Russo & David Balekdjian

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  1. Michael J Russo
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  2. David Balekdjian
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CardioVascular BioTherapeutics is a client of the Bruckner Group.

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Russo, M., Balekdjian, D. Weighing the outcomes. Nat Biotechnol 26, 173–182 (2008). https://doi.org/10.1038/nbt0208-173

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  • DOI: https://doi.org/10.1038/nbt0208-173

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