ISSUE: Drug pricing is a contentious issue – how important are the costs associated with developing and commercializing the drug, and what role does the value the drug brings to the healthcare system have? Professor Mark Sculpher, University of York, presents a case that healthcare systems should focus on the value the drug provides to the healthcare system, rewarding higher value with higher prices, but not funding those that bring little value, irrespective of the cost of development. Dr Takeshi Fukuda, Director of the Department of Health and Welfare Services at the National Institute of Public Health, discusses the Japanese perspective, where setting prices for new innovative drugs focuses primarily on the costs incurred by the manufacturer. Christoph Glaetzer, VP of Global Market Access at Janssen Pharma, argues that a hybrid system is key – one that considers the costs of research and development, together with the potential value the drug brings to both the patient and the healthcare system. All three panelists will discuss their viewpoint for 10 minutes followed by a 15-minute panel discussion, and 10 minutes of Q&A from the audience. OVERVIEW: In a time of austerity the budgetary pressures faced by payers is ever increasing, both globally and in Asia, and drug prices are coming under scrutiny. However, therein lies the dilemma. How should innovation be rewarded, ensuring that sufficient incentives exist to support continued investment in R&D, while balancing budgets to ensure that healthcare systems are not crippled from funding treatments that generate little value? The cost of developing and commercializing a drug has been the basis of rewarding innovation until relatively recently across a number of markets, with value being given less consideration. However, as cost pressures increase, an increasing number of markets are incorporating HTA into their drug funding assessments, shifting the conversation from cost to value. This begs the question, how important is value, and can it be accurately assessed? Should the focus remain on the costs of development and commercialization or is value-based pricing the future?