Drug Pricing Differentials Across Therapy Areas in EU4, UK, and US
Author(s)
Jennifer Nghaing, MSc, Monalisa Das, MPH;
Red Nucleus, Yardley, PA, USA
Red Nucleus, Yardley, PA, USA
Presentation Documents
OBJECTIVES: Identify trends in price differentials in launch prices of high-revenue drugs across the EU4, UK, and US.
METHODS: This analysis explores the launch pricing of high-revenue drugs across six key markets: the US, France, Germany, Italy, Spain, and the United Kingdom. A group of 24 drugs, selected for their top global revenue between 2020 and 2024 and availability in these markets, was evaluated. Launch prices, represented by annual ex-manufacturer prices (WAC/list price), were compared to identify price differences across regions. Additional analyses were conducted to examine the influence of orphan status, therapeutic areas, and classification as biologics versus non-biologics on launch pricing.
RESULTS: The analysis revealed significant variations in launch price differentials across the six markets evaluated. US launch prices were consistently higher, with an average difference of 51% compared to the UK and approximately 40% higher than those in France, Germany, and Spain. Italy demonstrated a slightly smaller differential at 35%. However, the data demonstrated considerable variability, with individual price differentials ranging from -88% to +122% across markets.
CONCLUSIONS: Substantial differences in launch pricing across the US and European markets highlight the complexity of global pricing strategies. Country-specific HTA methodologies, pricing regulations, market access dynamics, and confidential discounts play a significant role in shaping price differentials. European prices are also often influenced by international price referencing. Manufacturers must adopt tailored strategies that consider payer policies, international reference pricing frameworks, and competitive landscapes. To navigate these challenges, it is crucial for manufacturers to evaluate and respond to market-specific factors while aligning pricing strategies with broader global objectives. By considering these factors holistically, manufacturers can navigate pricing complexities and optimize competitive positioning, pricing and market access in the short and long term.
METHODS: This analysis explores the launch pricing of high-revenue drugs across six key markets: the US, France, Germany, Italy, Spain, and the United Kingdom. A group of 24 drugs, selected for their top global revenue between 2020 and 2024 and availability in these markets, was evaluated. Launch prices, represented by annual ex-manufacturer prices (WAC/list price), were compared to identify price differences across regions. Additional analyses were conducted to examine the influence of orphan status, therapeutic areas, and classification as biologics versus non-biologics on launch pricing.
RESULTS: The analysis revealed significant variations in launch price differentials across the six markets evaluated. US launch prices were consistently higher, with an average difference of 51% compared to the UK and approximately 40% higher than those in France, Germany, and Spain. Italy demonstrated a slightly smaller differential at 35%. However, the data demonstrated considerable variability, with individual price differentials ranging from -88% to +122% across markets.
CONCLUSIONS: Substantial differences in launch pricing across the US and European markets highlight the complexity of global pricing strategies. Country-specific HTA methodologies, pricing regulations, market access dynamics, and confidential discounts play a significant role in shaping price differentials. European prices are also often influenced by international price referencing. Manufacturers must adopt tailored strategies that consider payer policies, international reference pricing frameworks, and competitive landscapes. To navigate these challenges, it is crucial for manufacturers to evaluate and respond to market-specific factors while aligning pricing strategies with broader global objectives. By considering these factors holistically, manufacturers can navigate pricing complexities and optimize competitive positioning, pricing and market access in the short and long term.
Conference/Value in Health Info
2025-05, ISPOR 2025, Montréal, Quebec, CA
Value in Health, Volume 28, Issue S1
Code
EE362
Topic
Economic Evaluation
Disease
STA: Multiple/Other Specialized Treatments