Setting payment-levels within the commercial arrangements for new antibiotics
NICE and NHS England Improvement are undertaking a project to assess the feasibility of innovative models that pay for antimicrobials based on a health technology assessment of their value to the NHS as opposed to the volumes used. In 2018, EEPRU published a report discussing how NICE methods and processes could be adapted to appropriately assess the value of these new products. The value assessment stage of the project will provide estimates of the lifetime value of the products to the NHS taking into account both the health benefits generated by the products and the net costs they impose on the NHS, but excluding the payments for the new antibiotics. This therefore represents the expected maximum lifetime value of the product. If the NHS were to make a payment commensurate with this value, this would transfer the full value of the product to the manufacturer, including value generated in the off-patent period. There is, therefore, policy interest in how the payment for the product can be set at a level that both reflects the findings of the value assessment and considers how the benefits of the product can be shared between patients served by the NHS and manufacturers.
Aims
To establish which factors are relevant when considering how the benefits of new antibiotics can be shared between patients served by the NHS and manufacturers.
To consider what evidence is available to inform the consequences to the NHS and manufacturers of setting these shares at different levels?
Project team
Beth Woods, Karl Claxton, James Lomas, Helen Weatherly, Mark Sculpher
Contact
Beth Woods beth.woods@york.ac.uk
Reports
Woods B, Lomas J, Sculpher M, Weatherly H, Claxton K, (2022) Achieving dynamic efficiency in pharmaceutical innovation: identifying the optimal share of value, the payments required and evaluating pricing policies. Policy Research Unit in Economic Evaluation of Health and Care Interventions. Universities of Sheffield and York. Report 065. DOI: https://doi.org/10.15131/shef.data.25219241