Presentation (CTI)

OBJECTIVES: Net price transparency (NPT) is the policy by which the actual prices paid for pharmaceutical products are made publicly available. In most countries, these prices are in fact confidential, enabling manufacturers to price differentially based on willingness to pay and affordability, while managing international price referencing. However, there are calls to end the practice of confidentiality, led by the World Health Organization (WHO) in Resolution WHA72.8.
METHODS: Primary and secondary research on 5 European markets (Germany, France, Italy, Spain and United Kingdom) to explore current and future NPT policies.
RESULTS: In France, Italy and the UK net price confidentiality reigns and there is limited political pressure for change. In these markets, trade bodies have strong links that, alongside the regulatory and legal hurdles of switching position, will likely maintain the status quo.In Spain, there has been more vocal opposition to net price transparency with lobbying by Civio, a civil advocacy group, pushing the Transparency and Good Governance Council (CTBG) to change its position on net price, deeming its disclosure to not be harmful to commercial interests in Spain. By contrast, at least at the national level, Germany operates a policy of transparency with net prices freely available on the national database. However, recent legislation in the Medical Research Act (MFG) has opened the door to confidential pricing, with certain conditions on the manufacturer.
CONCLUSIONS: Despite some NPT reforms, in the near-to-mid-term confidentiality is likely to be the standard model for global pharmaceutical pricing. Manufacturers should focus on creating pricing strategies that represent the value their products offer to health systems, while using net price confidentiality as one lever to pull in negotiations. Monitoring the markets for any signs of further change is important, particularly around changes in the political landscape - including the impact of Most-Favored Nation (MFN) pricing in the US.