OBJECTIVES: New therapy pricing is a perennial policy concern. Valuations must balance payer affordability, patient access, fair manufacturer recompence, and implications on future innovation. The ISPOR Special Taskforce has identified and defined a series of value attributes for medical technologies. This study aimed to augment the elements of value and model the attributes in a novel oncology motivating example.

METHODS: A value-based price (VBP) model was developed in Microsoft Excel to evaluate a motivating example of a hypothetical novel high-value oncology therapy compared to standard of care (SOC). Three scenarios were evaluated by including the following types of elements of value: 1) conventional attributes (Adverse Events, Health Care Utilization, Response Rate, Cost of Standard of Care Therapy, Administration Costs); 2) more novel but previously identified values (Value of Hope, Quality of Life); and 3) novel and previously unidentified elements (Class Tide Effect (i.e.value of innovation), Caregiver Burden, Burden of Illness, Provider Capacity, Indirect Patient Burden). The final value-based price for each scenario was reported along with the key attributes contributing the greatest value.

RESULTS: For Scenario 1, the final VBP ranged from $288,000-$310,000 in the base case scenarios. The largest value elements were Response Rate and Cost of SOC Therapy. For Scenario 2, the VBP ranged from $366,000-$410,000, driven primarily by Quality of Life attribute. For Scenario 3, the final VBP ranged from $738,000-$743,000. The largest attributes were Class Tide Effect and Burden of Illness.

CONCLUSIONS: We have described a series of elements that deserve consideration in value-based pricing and economics assessments of health care technologies. Our discussion of some of the more novel elements of value broadens the view of what constitutes value in health care. The study augments the framework for estimating the value and price of assets to inform Pricing and Market Access strategy.