For UK pharmaceutical and life sciences leaders
One price across all indications is costing you revenue and restricting patient access
NICE appraises each indication on its own merits, yet NHS list pricing remains uniform. For multi-indication medicines with genuinely different value profiles, that mismatch simultaneously leaves money on the table and creates barriers where they need not exist.
Two minutes. Solva follows up with specific indication-specific commercial strategy options.
- Medicines with high value in one indication are priced too low for another, leaving revenue on the table
- Patients for lower-value indications face access barriers due to an unaffordable price
- Lengthy and complex negotiations with NHS England for commercial flexibilities
- Sub-optimal market uptake and slower diffusion of innovative treatments
- Increased administrative burden for managing complex pricing agreements
- Slower market access and uptake for new multi-indication medicines
- Loss of potential revenue from underpriced high-value indications
- Reduced return on investment for R&D in multi-indication therapies
- Delayed or restricted patient access to effective treatments for certain indications
- Sub-optimal health outcomes if patients cannot access the most appropriate medicine
- Perception of pharmaceutical companies prioritising profit over patient access
- Negative stakeholder relationships with NHS and patient advocacy groups
Indication-based pricing (IBP) can improve patient access and health benefits for multi-indication medicines, although its overall population health effects are debated due to potential higher expenditure (OHE, 2024)
Source: https://www.ohe.org/insights/what-is-the-impact-of-uniform-pricing-indication-based-pricing/
Frequently asked questions
Why does this problem persist?
Indication-specific pricing is complex in the UK - NICE appraises by indication but NHS pricing is typically uniform. Companies that don't have a clear indication-specific commercial strategy end up with a price that is wrong for every indication.
What is the cost of leaving it unaddressed?
Uniform pricing for multi-indication medicines can lead to underpricing of high-value indications, resulting in lost revenue for pharmaceutical companies, and overpricing of lower-value indications, creating access barriers (OHE, 2015)
This is exactly what I do with UK private practices. Answer the few questions above and I'll come back personally with where to start. Paul.