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A Perspective on Suitability of a Cost-Based Pricing Methodology for Repurposed Orphan Medicines: A Consideration of the Overall Value Proposition

Published:September 07, 2021DOI:https://doi.org/10.1016/j.jval.2021.06.017
      The authors presented arguments for using cost-based pricing models to develop pricing strategies for repurposing existing or previously authorized medicines in new rare disease indications.

      van den Berg S, van der Wel C, de Visser S, et al. Cost-based price calculation of mexiletine for non-dystrophic myotonia. Value Health;24(7):925-929.

      We believe that they unfortunately oversimplify the pricing of repurposed orphan medicinal products, given that a cost-based determination of price of medicine meeting the high unmet needs of orphan diseases rewards high-cost developments rather than high-value products in an underserved patient population. On the contrary, basing prices on the overall value proposition of an orphan medicinal product represents the healthcare payers’ willingness to reimburse such products based on healthcare outcomes over and above efficacy, as well as the correlation between economic and clinical benefits to stakeholders involved.
      • Provines C.D.
      Overcoming organizational barriers to implementing value-based pricing in the medical devices & diagnostics industry.
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