Drug Pricing With Evidence Development

Robinson focuses on drug pricing with evidence development. There are many possible models by which the price of a drug can be made to evolve in accordance with the evidence of its clinical benefit, but 3 examples illustrate the possibilities. In the first model of pricing with evidence development, payers could guarantee a schedule of price increases conditional on confirmatory evidence. In a second model of pricing with evidence development, the initial price could be negotiated based on the available evidence but is subject to renegotiation when benefits are confirmed. A third model could build on the mandatory discounts and best price guarantees available to state Medicaid programs. Pricing with evidence development applies the principles of value-based drug pricing to the common context in which clinical evidence, and hence documented value, evolves. It is the logical method of pricing for drugs authorized by FDA according to accelerated review.