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Pricing Complexities of a Combination Therapy

This article, authored by EVERSANA’s Asia Pacific team, discusses the increasing use of combination therapies in oncology and the challenges associated with pricing them. Combination therapies, which involve a backbone therapy and one or more add-on therapies, offer better clinical outcomes but pose difficulties in determining their value and pricing. One challenge arises from the fact that combination treatments are evaluated as a single therapy, but the individual components are priced independently. The value attributed to the add-on therapy is limited as it is calculated based on the residual value of the combination after removing the price of the backbone therapy.

Additionally, combination therapies may not demonstrate cost-effectiveness even if the add-on therapy has no incremental cost because the longer treatment duration increases the total cost. The article suggests potential solutions such as value attribution, indication-specific pricing, and tripartite negotiations between manufacturers and payer bodies. EVERSANA, an organization with expertise in supporting clients with combination therapies, offers assistance in understanding pricing complexities and market expectations.

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Author Team

EVERSANA employs a team of over 6000 professionals across 20+ locations around the world. From industry-leading patient service and adherence support to global pricing and revenue management, our team informs the strategies that matter…