A new payment-by-results method for determining the fair price of new oncological drugs

Abstract

The high prices of new cancer drugs are likely to undermine national health services sustainability. As a solution to this problem, the “payment-by-results” method was proposed and nowadays this approach is commonly implemented by national drug agencies: the drug manufacturer is set to refund to the National Health Service the price of the drug if the benefits expected for the patient are not achieved. Based on the payment-by-results approach, we developed a new and easy to implement model, that can set a fair price, so that neither industry, nor National Health Service can obtain an undue gain. Obviously, this price can be modified by adjusting refund amounts to new healthcare and market conditions.