Tuesday, July 21, 2015

With regard to performance-based pricing where drug manufacturers

... are paid based on how well a drug works, "[t]he cynical side of me believes [the drugmakers'] finance people will say, 'Well, we think this will work in 30% of the people and we're going to work with health plans to have a structure in place so that they only pay for it for those for whom it works. So if it works in 30% of the people, then we triple the price so that we get the full revenue that we want out of it.' It's like, 'You can pay me now or pay me later,' but at the end of the day [manufacturers are] going to get the revenue that their shareholders want....They'll just build this kind of structure into their pricing."

— Jim Carlson, Pharm.D., vice president for professional pharmacy services with OmedaRx, told AIS's Drug Benefit News.

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