Evidence map›Paper›PMID 36045377›Full record

ArticleCost effectiveness and resource allocation : C/E2022

Do Health Technology Assessment organisations consider manufacturers' costs in relation to drug price? A study of reimbursement reports.

Joost J Enzing, Saskia Knies, Jop Engel, Maarten J IJzerman, Beate Sander, Rick Vreman, Bert Boer, Werner B F Brouwer

Abstract read
In one paragraph

Article in Cost effectiveness and resource allocation : C/E, 2022. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Not yet cited in PubMed.

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1 · What the graph read from it

What it found

Each row is one number read from the abstract, on the scale the paper reported it, with its interval. Left of the dashed line favours the treatment, right favours the comparator. Under each row is the sentence it came from. New to these charts? A ten-minute tutorial.

The abstract states no effect estimate the extractor could read, or names no intervention and outcome on the map, so this paper lights no cell and moves no belief. It is still indexed, cited and linked below.

2 · The registry

The trial behind it

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Neither the registry nor the abstract names a trial number. If this is a trial report, that itself is worth knowing.

3 · Its place in the literature

Who cites it

0 citing papers in PubMed.

No citing paper in PubMed yet.

4 · The record

Corrections and comments

PubMed lists nothing against this paper. Absence here is not a guarantee, only a check that was made.

5 · Who and what money

Authors and funding

8 authors.

Joost J EnzingErasmus School of Health Policy & Management, Erasmus University Rotterdam, Rotterdam, The Netherlands. enzing@eshpm.eur.nl.
Saskia KniesErasmus School of Health Policy & Management, Erasmus University Rotterdam, Rotterdam, The Netherlands.
Jop EngelZorginstituut Nederland, Diemen, The Netherlands.
Maarten J IJzermanCancer Health Services Research, School of Population and Global Health, Faculty of Medicine, Dentistry and Health Sciences, University of Melbourne, Melbourne, VIC, Australia.
Beate SanderToronto Health Economics and Technology Assessment (THETA) Collaborative, University Health Network, Toronto, ON, Canada.
Rick VremanZorginstituut Nederland, Diemen, The Netherlands.
Bert BoerErasmus School of Health Policy & Management, Erasmus University Rotterdam, Rotterdam, The Netherlands.
Werner B F BrouwerErasmus School of Health Policy & Management, Erasmus University Rotterdam, Rotterdam, The Netherlands.

Funding

No grant is acknowledged in the PubMed record.

6 · The paper itself

Abstract

introductionDrug 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.

methodAn 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.

resultsA 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.

conclusionDespite 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.

Indexed as

Drug pricingHealth Technology AssessmentHTAHTA agenciesPharmaceuticalsPricing modelsProfitabilityProfit marginReimbursement decision making

Identifiers

PMID36045377
PMCPMC9434877

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