Presentation (CTI)

OBJECTIVES: The study aims to assess the effects of International Reference Pricing (IRP) on the price corridor of 8 cancer immunotherapy interventions in Europe between 2013 and 2023. IRP is a main criterion for price-setting in at least 20 European countries and has prompted manufacturers to delay launches in countries with low willingness to pay to safeguard their average price across Europe with respect to IRP. This has resulted in a disparity in access to medicine among European countries.
METHODS: The study aimed to calculate and monitor the Daily Defined Dose (DDD) ex-factory (Ex-f) prices (€) for eight cancer immunotherapy technologies in 20 European countries implementing the IRP. The time horizon of the study was between 2013 and 2023. A price corridor was established along the study period, and an average trend line for each medication across the 20 European countries was calculated.
RESULTS: The study found that the average DDD Ex-f (€) for all eight medications dropped by 6% within the first five years following their launch. Over the study time horizon, the overall average reduction in the price trend for all the treatments was 19%. The price corridor analysis indicated that prices tend to stabilise in the long run; it was evident that the IRP formulas mainly exert downward pressure on prices in the first five years after launch.
CONCLUSIONS: The findings highlight that IRP significantly influences medication pricing in Europe, particularly in the early years following market entry. While IRP may appear to deliver short-term budget savings from the payer’s perspective, these savings may be limited over the long term, as prices tend to stabilise.