Skip to main content

Thank you for visiting nature.com. You are using a browser version with limited support for CSS. To obtain the best experience, we recommend you use a more up to date browser (or turn off compatibility mode in Internet Explorer). In the meantime, to ensure continued support, we are displaying the site without styles and JavaScript.

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.

This is a preview of subscription content, access via your institution

Access options

Rent or buy this article

Prices vary by article type

from$1.95

to$39.95

Learn more

Prices may be subject to local taxes which are calculated during checkout

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

Download references

Author information

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

Authors
  1. Michael J Russo
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. David Balekdjian
    View author publications

    You can also search for this author in PubMed Google Scholar

Ethics declarations

Competing interests

CardioVascular BioTherapeutics is a client of the Bruckner Group.

Rights and permissions

Reprints and Permissions

About this article

Cite this article

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

Download citation

  • Issue Date:

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

This article is cited by

Search

Advanced search

Quick links

Nature Briefing

Sign up for the Nature Briefing newsletter — what matters in science, free to your inbox daily.

Get the most important science stories of the day, free in your inbox. Sign up for Nature Briefing