Question

Explain your understanding of value-based pricing for pharmaceuticals. Use an example to help with the explanation.

Answer 1

Value-Based pricing means achieving the basic price of medicine by promoting a link between the pharma companies and payers. The main goal of this value-based pricing is to attain a value metric system. The prescribed medicine should provide benefit to the patient. The pharmacist should dispense medicine by not looking into the profit. The pharma companies should focus on the patient outcome by dispensing medication at an affordable cost. Both the pharma companies and payers should invest equally and transaction cost should be minimal. Stakeholders must supply of medication by enhancing the value of the patient.

For example,

• The cardiologist should reduce the Prescribing of cardiac generic medicine is more expensive.
• The product should be cleared with an outcome of the disease.
• Conditional coverage should cover the risk-sharing.