Implications of Indication Expansions on Pricing and Reimbursement and How This Differs Between EU4 and UK Markets

Author(s)

Baig M1, Nicol G1, Vadehra R1, Craddy P2
1Remap Consulting UK Ltd, Macclesfield, CHE, UK, 2Remap Consulting GmbH, ZUG, ZG, Switzerland

INTRODUCTION: Sequential launching in multiple indications is increasingly common, particularly in oncology and autoimmune diseases. Determining the appropriate price for multi-indication products is complex due to substantial value variation between indications. Understanding the factors influencing value and the differing pricing mechanisms across the EU4 and UK is crucial for successful secondary indication launches.

OBJECTIVES: This study examines pricing and reimbursement considerations for launching in a second indication in the EU4 and UK.

METHODS: A review of scholarly articles, reports, and publications on indication expansions, pricing strategies, and reimbursement mechanisms across France, Germany, Italy, Spain, and the United Kingdom was conducted.

RESULTS: When launching in a second indication, it is important to understand the product’s value compared to its first indication. Key value factors include:

  • Added benefit: Therapeutic advantage over the current standard of care.
  • Unmet need: Availability and adequacy of existing treatments.
  • Population size: Number of patients likely to benefit.
  • Competitive landscape: Existing treatment options.
  • Pricing dynamics: Net price of the product in the first indication and comparator products.
Across the EU4 and UK, pricing mechanisms vary for second indications:

  • France, Germany, Spain: A weighted price considering population size and comparator products.
  • Italy: Mandatory discounts proportional to population size increase, considering unmet need, added clinical value, and evidence quality.
  • UK: A new PAS applied to both indications, with potential differential discounting based on NHS commercial framework and VPAG criteria.
  • These mechanisms provide broad guidelines, but the final net price depends on value, unmet need, and target indication.

CONCLUSIONS: Pricing mechanisms differ across the EU4 and UK for indication expansions. Factors determining differential value influence the discount applied, typically decreasing the net price due to increased population size and budget impact. Tailoring launch strategies to each market is essential to optimise price potential in additional indications.

Conference/Value in Health Info

2024-11, ISPOR Europe 2024, Barcelona, Spain

Value in Health, Volume 27, Issue 12, S2 (December 2024)

Code

HTA134

Topic

Health Technology Assessment

Topic Subcategory

Systems & Structure

Disease

Diabetes/Endocrine/Metabolic Disorders (including obesity), Oncology

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