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Turning the tide on cancer drug costs

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Summary: At The Economist’s War on Cancer 2015 event on 20 October 2015 (http://www.economist.com/events-conferences/emea/war-cancer-london), EY’s Silvia Ondategui-Parra joined the panel discussion “The patient/payer debate—balancing clinical need and affordability.” The panel explored the ongoing tension between the soaring cost of cancer drugs and governments’ ability to fund them and raised the question, do we need an entirely new pricing model? This EY infographic was developed to highlight some of the key trends driving the debate.

Published in: Healthcare
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Turning the tide on cancer drug costs

  1. 1. Turning the tide on cancer drug costs The increase in the median monthly cost of cancer drugs in the US since 19902 ©2015EYGMLimited.AllRightsReserved.EYGno.FN0236.EDNone 1 A rising tide of new cancer drugs helps patients. These contracts are complex to build, but can provide a strong foundation for patient access. To hold back the tide of oncology drug costs, payers …3 ... experiment with new models US payers test indication-specific pricing, taking advantage of four new drug value tools. Since 2006, NICE has issued negative recommendations for of the cancer drugs reviewed.3 ... limit patient access Innovative risk-sharing agreements are another way to turn the tide.4 of the contracts are for cancer drugs.4 65%The number of risk-sharing contracts created in the UK and Italy since 2006 90 Sources: 1 U.S. Food & Drug Administration, Memorial Sloan Kettering Cancer Center, Decision Resources. 2 Peter Bach, Memorial Sloan Kettering Cancer Center, Center for Health Policy and Outcomes, "Price and Value of Cancer Drug," 2015. 3 EY, National Institute for Health and Care Excellence (NICE). 4 Van de Vooren, et al., “Market-access agreements for anti-cancer drugs,” J R Soc Med (108): 166–170, 2015. Since 1990, new cancer drugs have been approved in the US. 117 50Another could reach the market by 2020.1 $41% >700% 2 This wave of innovation could drown payers.

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