Feasibility of Indication-Specific Pricing for Life Cycle Management of an Innovative Rare Disease Product
Author(s)
Utkun Sahin, MSc1, Ravi Degun, PhD2, Prateek Madaan, MBA2, Makana Krulce, MSc2, Maddie Cooper, BSc2, Chantal Marie Isabelle Primo, MSc2, Christopher Stephen Spencer, MSc2.
1Boehringer Ingelheim, Ingelheim, Germany, 2Ernst and Young LLP, London, United Kingdom.
1Boehringer Ingelheim, Ingelheim, Germany, 2Ernst and Young LLP, London, United Kingdom.
OBJECTIVES: The feasibility to implement indication-specific pricing for pharmaceutical products is generally considered low in most global markets. We evaluated different strategic options and tactics that would enable indication-specific pricing for a rare disease product launched globally.
METHODS: Comprehensive secondary research was conducted to evaluate the local payer policy, reimbursement, and pricing landscape in each market. The secondary research also included identifying key insights and learnings from pharmaceutical companies that have successfully implemented indication-specific pricing strategies for their product(s). Additionally, primary research involving 40 local payer experts across the US, Germany, France, China and Japan markets was carried out to assess impact on price differentiation across indications and feasibility of the identified strategic options.
RESULTS: Several strategic options to support implementation of indication specific pricing were identified, including pursuit of a new drug formulation or billing code, change of the vial concentration, delivery device or route of administration (RoA), as well as establishment of a dual brand. The acceptance of these strategic options and their impact on price differentiation across product indications varies by market with strategic more options supporting price differentiation in the US compared to Ex-US markets.
CONCLUSIONS: To achieve indication-specific pricing for innovative multi-indication therapies, manufacturers need to thoroughly assess local payer policy landscapes. This involves identifying the most effective strategies and tactics in each market while carefully assessing the potential risks and financial viability associated with each.
METHODS: Comprehensive secondary research was conducted to evaluate the local payer policy, reimbursement, and pricing landscape in each market. The secondary research also included identifying key insights and learnings from pharmaceutical companies that have successfully implemented indication-specific pricing strategies for their product(s). Additionally, primary research involving 40 local payer experts across the US, Germany, France, China and Japan markets was carried out to assess impact on price differentiation across indications and feasibility of the identified strategic options.
RESULTS: Several strategic options to support implementation of indication specific pricing were identified, including pursuit of a new drug formulation or billing code, change of the vial concentration, delivery device or route of administration (RoA), as well as establishment of a dual brand. The acceptance of these strategic options and their impact on price differentiation across product indications varies by market with strategic more options supporting price differentiation in the US compared to Ex-US markets.
CONCLUSIONS: To achieve indication-specific pricing for innovative multi-indication therapies, manufacturers need to thoroughly assess local payer policy landscapes. This involves identifying the most effective strategies and tactics in each market while carefully assessing the potential risks and financial viability associated with each.
Conference/Value in Health Info
2025-11, ISPOR Europe 2025, Glasgow, Scotland
Value in Health, Volume 28, Issue S2
Code
HPR94
Topic
Health Policy & Regulatory, Health Technology Assessment
Topic Subcategory
Pricing Policy & Schemes
Disease
No Additional Disease & Conditions/Specialized Treatment Areas, Rare & Orphan Diseases