Levaggi R., Pertile P. (2020)

Authors’ Reply to Garattini and Freemantle: “Value-Based Pricing Alternatives for Personalised Drugs: Implications of Asymmetric Information and Competition”. APPLIED HEALTH ECONOMICS AND HEALTH POLICY, vol. 18 , n. 3 , 2020 , pp. 455-456-456

 

Abstract:

Personalised drugs will increase the heterogeneity in patients’ responses to treatment; this opens new scenarios with regard to the relationship between price regulation and listing strategies by the industry. In a static framework, if the effectiveness differential across patients can be observed only by the manufacturer, the main definitions currently proposed for value-based prices lead to the same listing strategy. This is no longer true in a dynamic setting where competition by a new entrant is possible. To predict accurately the implications of alternative pricing policies, it is essential for decision makers to adopt a dynamic perspective that takes the role of competition into account.