HOPE Center Study: Innovative methods for outcomes-based pricing for pharmaceuticals published as a special issue

Sept. 27, 2020

Researchers from the Center for Health Outcomes & PharmacoEconomic (HOPE) Research Center at the University of Arizona College of Pharmacy designed, validated, and published methods to price treatments used in outcome-based contracting from the payer perspective. This work was led by Nimer Alkhatib, PhD (Alumni, now Assistant Professor at Al-Zaytoonah University of Jordan) and supervised by Drs. Abraham, McBride, Erstad, Bhattacharjee (University of Texas at Austin), Slack, and Ramos (Texas A&M University).

Price variations for treatments are based on 6 dimensions (6 δ) across two time-horizons: 2 dimensions based on long-term assessments and 4 based on short-term assessments. Each dimension simulates different scenarios resulting in dimension-specific prices and an overall average dimensional price. Authors illustrate multidimensional pricing for osimertinib to treat non-small cell lung cancer (NSCLC) with epidermal growth factor receptor (EGFR) mutation. The work comprises eight articles published in the Journal of Medical Economics.

Editorial Article: The six delta platform for outcome-based contracting for pharmaceuticals

1. Pricing methods in outcome-based contracting: δ1: cost effectiveness analysis and cost-utility analysis-based pricing
2. Pricing methods in outcome-based contracting: δ2: willingness-to-pay-based pricing
3. Pricing methods in outcome-based contracting: δ3: reference-based pricing
4. Pricing methods in outcome-based contracting: δ4: safety-based pricing
5. Pricing methods in outcome-based contracting: δ5: risk of efficacy failure-based pricing
6. Pricing methods in outcome-based contracting: δ6: adherence-based pricing
7. Pricing methods in outcome-based contracting: integration analysis of the six dimensions (6 δs)