TOWARD RISK-SEEKING PRICING FOR ADVANCED THERAPEUTIC AND MEDICINAL PRODUCTS IN ULTRA-ORPHAN CONDITIONS: PRODUCT CHARACTERISTICS THAT MATTER TO PAYERS
Author(s)
Omair Azam, PhD.
Centre for Public Health, Queens University Belfast, Belfast, United Kingdom.
Centre for Public Health, Queens University Belfast, Belfast, United Kingdom.
OBJECTIVES: Limited market incentives, combined with the atypical study designs often required in research and development (R&D) for ultra-orphan therapeutics, can threaten the translation of scientific breakthroughs into effective therapies. In the UK, more than 3.5 million people live with a rare disease but only 5% of rare diseases have an effective and approved treatment on the market. This research seeks to develop a pricing framework within which payers can reward successful translation of breakthrough science to treat ultra-orphan conditions through selective adoption of a risk-seeking attitude, and to explore its potential impact on R&D investment decisions.
METHODS: The research will comprise three phases. Study 1: In-depth interviews will be conducted to ascertain the decision domains and product attributes that could drive different risk attitudes by payers. Study 2: A discrete choice experiment study will be carried out to quantify the weights and trade-offs between decision domains and product attributes in order to understand payer risk attitudes (averse, neutral, seeking) under different scenarios. Study 3: A cost-effectiveness model will be developed for an exemplar advanced therapeutic and medicinal product targeting an ultra-orphan condition to illustrate the potential of risk-based pricing on evidentiary requirements and/or price premia.
RESULTS: In conventional health technology assessment (HTA) and pricing processes, payers are often assumed to adopt a risk-neutral attitude toward investment decisions. This research presents a novel framework to incentivise high-risk high-reward investments where payers can adopt a risk-seeking attitude for appropriate technologies in HTA and pricing processes. We aim to provide decision makers with a toolkit that can support R&D investment in high-value technologies, improve patient access to ultra-orphan therapeutics, and help address the gap in effective treatments for rare diseases.
CONCLUSIONS: N/A
METHODS: The research will comprise three phases. Study 1: In-depth interviews will be conducted to ascertain the decision domains and product attributes that could drive different risk attitudes by payers. Study 2: A discrete choice experiment study will be carried out to quantify the weights and trade-offs between decision domains and product attributes in order to understand payer risk attitudes (averse, neutral, seeking) under different scenarios. Study 3: A cost-effectiveness model will be developed for an exemplar advanced therapeutic and medicinal product targeting an ultra-orphan condition to illustrate the potential of risk-based pricing on evidentiary requirements and/or price premia.
RESULTS: In conventional health technology assessment (HTA) and pricing processes, payers are often assumed to adopt a risk-neutral attitude toward investment decisions. This research presents a novel framework to incentivise high-risk high-reward investments where payers can adopt a risk-seeking attitude for appropriate technologies in HTA and pricing processes. We aim to provide decision makers with a toolkit that can support R&D investment in high-value technologies, improve patient access to ultra-orphan therapeutics, and help address the gap in effective treatments for rare diseases.
CONCLUSIONS: N/A
Conference/Value in Health Info
2026-11, ISPOR Europe 2026, Vienna, Austria
Value in Health, Volume 29, Issue 12S
Code
HTA37
Topic
Health Technology Assessment
Topic Subcategory
Decision & Deliberative Processes, Value Frameworks & Dossier Format
Disease
Rare & Orphan Diseases