Novartis to test new pricing model with heart failure drug
Novartis plans to test a novel pricing model with some customers when it launches its keenly awaited new heart failure drug Entresto, the Swiss company's head of pharmaceuticals said on
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I'm intrigued by the implications of this pricing model. On the one hand, it could be a great cost-effective way to get larger data sets to look at the efficacy and safety of new drugs. It also could help people get cutting edge treatments at affordable prices.
However. I do see potential for abuse of this system if it becomes commonplace. For example, what if a new discount comes with a new indication, and thus new indications are sought more aggressively (even when they might not necessarily be justified or in the best interests of patients) to spur another period of rapid adoption of the drug? Maybe that's a little overly-cynical of me, but I feel like it's worth thinking about potential problems ahead of time so we can recognize them if they start to happen.
Anyway I was just interested in what others think about this, and what benefits or pitfalls you foresee for this type of payment model.
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I am always cynical when drug companies try to paint themselves as altruistic and caring more for the patient than about money. That being said, the model does sound like it has some good points. I would like to see it work before I pass judgment.