Drug Pricing Policy – Implications for Investment in Post Market Study

Moderator

Kirsten Axelsen, DLA Piper, United States

Speakers

Darius Lakdawalla, PhD, University of Southern California, Los Angeles, CA, United States; Gregory Daniel, MPH, PhD, Eli Lilly & Co. Ltd., Washington, DC, United States

Global pricing policies are reshaping incentives for life sciences investment across the product lifecycle. Price-setting under the U.S. Inflation Reduction Act, automatic reductions in Japan, and European clawbacks all compress expected returns as products mature. For venture investors, these policies raise a critical question: how do tightening price controls influence the business case for post-market evidence generation, including HEOR and real-world effectiveness studies?

At initial approval, the health system, investors, and patients have the least information they will ever have about a therapy. Post-market trials and real-world evidence can establish value in routine practice, expand use into new populations, support earlier-line treatment in areas like oncology, or demonstrate alternative delivery options such as long-acting injectables. Each represents a potential value inflection point.

Yet many pricing regimes—including international reference pricing, caps, and automatic erosion—offer limited flexibility to reward additional evidence. This misalignment weakens incentives for lifecycle research despite its importance for clinical adoption and payer confidence.

This panel will examine emerging research quantifying the value created by post-market evidence and explore policy reforms and commercial strategies that could preserve or restore incentives for lifecycle studies. The discussion will offer investors a practical framework for evaluating assets in an increasingly constrained pricing environment.

Speakers to be added.

Topic

Health Policy & Regulatory

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