Embracing Transparency

Jul 25, 2019

How pharma companies can turn pricing reform to their advantage

Posted by KPMG LLP

The paper –Embracing Transparency– examines the impact of policy changes and how compliance should not be the sole motivation for evolving pricing practices in the pharma sector. More significant issues may be public perception of so-called inflated and arbitrary pricing, as well as concern that pharmacy benefit manager-driven discounts rarely trickle down to the consumer.
 

This paper suggests that pharma companies:

— Invest in robust clinical datasets that support the advantages of innovative drugs over previous standards of care
— Take advantage of payers’ openness to newer forms of outcomes-based contracting based on longitudinal real-world evidence
— Look for consolidation plays across disease areas and mechanisms of action

For the longer term, consider starting discussions around:

— What it would look like if manufacturers increased their focus on direct-to-consumer strategies
— What data and technology tools would be needed to start measuring value across interventions that involve both drug treatment and clinical care
— How pricing would work if manufacturers pursued vertical integration with payers and/or PBMs

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