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Do Health Technology Assessment organisations consider manufacturers’ costs in relation to drug price? A study of reimbursement reports
INTRODUCTION: Drug reimbursement decisions are often made based on a price set by the manufacturer. In some cases, this price leads to public and scientific debates about whether its level can be justified in relation to its costs, including those related to research and development (R&D) and ma...
Autores principales: | , , , , , , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
BioMed Central
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9434877/ https://www.ncbi.nlm.nih.gov/pubmed/36045377 http://dx.doi.org/10.1186/s12962-022-00383-y |
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author | Enzing, Joost J. Knies, Saskia Engel, Jop IJzerman, Maarten J. Sander, Beate Vreman, Rick Boer, Bert Brouwer, Werner B. F. |
author_facet | Enzing, Joost J. Knies, Saskia Engel, Jop IJzerman, Maarten J. Sander, Beate Vreman, Rick Boer, Bert Brouwer, Werner B. F. |
author_sort | Enzing, Joost J. |
collection | PubMed |
description | INTRODUCTION: Drug reimbursement decisions are often made based on a price set by the manufacturer. In some cases, this price leads to public and scientific debates about whether its level can be justified in relation to its costs, including those related to research and development (R&D) and manufacturing. Such considerations could enter the decision process in collectively financed health care systems. This paper investigates whether manufacturers’ costs in relation to drug prices, or profit margins, are explicitly mentioned and considered by health technology assessment (HTA) organisations. METHOD: An analysis of reimbursement reports for cancer drugs was performed. All relevant Dutch HTA-reports, published between 2017 and 2019, were selected and matched with HTA-reports from three other jurisdictions (England, Canada, Australia). Information was extracted. Additionally, reimbursement reports for three cases of expensive non-oncolytic orphan drugs prominent in pricing debates in the Netherlands were investigated in depth to examine consideration of profit margins. RESULTS: A total of 66 HTA-reports concerning 15 cancer drugs were included. None of these reports contained information on manufacturer’s costs or profit margins. Some reports contained general considerations of the HTA organisation which related prices to manufacturers’ costs: six contained a statement on the lack of price setting transparency, one mentioned recouping R&D costs as a potential argument to justify a high price. For the case studies, 21 HTA-reports were selected. One contained a cost-based price justification provided by the manufacturer. None of the other reports contained information on manufacturer’s costs or profit margins. Six reports contained a discussion about lack of transparency. Reports from two jurisdictions contained invitations to justify high prices by demonstrating high costs. CONCLUSION: Despite the attention given to manufacturers’ costs in relation to price in public debates and in the literature, this issue does not seem to get explicit systematic consideration in the reimbursement reports of expensive drugs. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1186/s12962-022-00383-y. |
format | Online Article Text |
id | pubmed-9434877 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | BioMed Central |
record_format | MEDLINE/PubMed |
spelling | pubmed-94348772022-09-02 Do Health Technology Assessment organisations consider manufacturers’ costs in relation to drug price? A study of reimbursement reports Enzing, Joost J. Knies, Saskia Engel, Jop IJzerman, Maarten J. Sander, Beate Vreman, Rick Boer, Bert Brouwer, Werner B. F. Cost Eff Resour Alloc Research INTRODUCTION: Drug reimbursement decisions are often made based on a price set by the manufacturer. In some cases, this price leads to public and scientific debates about whether its level can be justified in relation to its costs, including those related to research and development (R&D) and manufacturing. Such considerations could enter the decision process in collectively financed health care systems. This paper investigates whether manufacturers’ costs in relation to drug prices, or profit margins, are explicitly mentioned and considered by health technology assessment (HTA) organisations. METHOD: An analysis of reimbursement reports for cancer drugs was performed. All relevant Dutch HTA-reports, published between 2017 and 2019, were selected and matched with HTA-reports from three other jurisdictions (England, Canada, Australia). Information was extracted. Additionally, reimbursement reports for three cases of expensive non-oncolytic orphan drugs prominent in pricing debates in the Netherlands were investigated in depth to examine consideration of profit margins. RESULTS: A total of 66 HTA-reports concerning 15 cancer drugs were included. None of these reports contained information on manufacturer’s costs or profit margins. Some reports contained general considerations of the HTA organisation which related prices to manufacturers’ costs: six contained a statement on the lack of price setting transparency, one mentioned recouping R&D costs as a potential argument to justify a high price. For the case studies, 21 HTA-reports were selected. One contained a cost-based price justification provided by the manufacturer. None of the other reports contained information on manufacturer’s costs or profit margins. Six reports contained a discussion about lack of transparency. Reports from two jurisdictions contained invitations to justify high prices by demonstrating high costs. CONCLUSION: Despite the attention given to manufacturers’ costs in relation to price in public debates and in the literature, this issue does not seem to get explicit systematic consideration in the reimbursement reports of expensive drugs. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1186/s12962-022-00383-y. BioMed Central 2022-08-31 /pmc/articles/PMC9434877/ /pubmed/36045377 http://dx.doi.org/10.1186/s12962-022-00383-y Text en © The Author(s) 2022 https://creativecommons.org/licenses/by/4.0/Open AccessThis article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) . The Creative Commons Public Domain Dedication waiver (http://creativecommons.org/publicdomain/zero/1.0/ (https://creativecommons.org/publicdomain/zero/1.0/) ) applies to the data made available in this article, unless otherwise stated in a credit line to the data. |
spellingShingle | Research Enzing, Joost J. Knies, Saskia Engel, Jop IJzerman, Maarten J. Sander, Beate Vreman, Rick Boer, Bert Brouwer, Werner B. F. Do Health Technology Assessment organisations consider manufacturers’ costs in relation to drug price? A study of reimbursement reports |
title | Do Health Technology Assessment organisations consider manufacturers’ costs in relation to drug price? A study of reimbursement reports |
title_full | Do Health Technology Assessment organisations consider manufacturers’ costs in relation to drug price? A study of reimbursement reports |
title_fullStr | Do Health Technology Assessment organisations consider manufacturers’ costs in relation to drug price? A study of reimbursement reports |
title_full_unstemmed | Do Health Technology Assessment organisations consider manufacturers’ costs in relation to drug price? A study of reimbursement reports |
title_short | Do Health Technology Assessment organisations consider manufacturers’ costs in relation to drug price? A study of reimbursement reports |
title_sort | do health technology assessment organisations consider manufacturers’ costs in relation to drug price? a study of reimbursement reports |
topic | Research |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9434877/ https://www.ncbi.nlm.nih.gov/pubmed/36045377 http://dx.doi.org/10.1186/s12962-022-00383-y |
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