TY - JOUR
T1 - Concise review
T2 - The high cost of high tech medicine: Planning ahead for market access
AU - Driscoll, Dawn
AU - Farnia, Stephanie
AU - Kefalas, Panos
AU - Maziarz, Richard T.
N1 - Publisher Copyright:
© 2017 The Authors.
PY - 2017/8
Y1 - 2017/8
N2 - Cellular therapies and other regenerative medicines are emerging as potentially transformative additions to modern medicine, but likely at a staggering financial cost. Public health care systems’ budgets are already strained by growing and aging populations, and many private insurer’s budgets are equally stretched. The current systems that most payers employ to manage their cash flow are not structured to absorb a sudden onslaught of very expensive prescriptions for a large portion of their covered population. Despite this, developers of new regenerative medicines tend to focus on the demands of regulators, not payers, in order to be compliant throughout the clinical trials phases, and to develop a product that ultimately will be approvable. It is not advisable to assume that an approved product will automatically become a reimbursed product, as examples from current practice in hematopoietic stem cell transplantation in the U.S. demonstrate; similarly, in Europe numerous Advanced-therapy Medicinal Products achieved market authorization but failed to secure reimbursement (e.g., Glybera, Provenge, ChondroCelect, MACI). There are however strategies and approaches that developers can employ throughout clinical development, in order to generate clinical and health economic data which will be necessary to demonstrate the value proposition of the new product and help ensure market access for patients; furthermore, performance based managed entry agreements coupled with post-launch evidence generation can help overcome challenges around product uncertainty at launch and reduce market access delays.
AB - Cellular therapies and other regenerative medicines are emerging as potentially transformative additions to modern medicine, but likely at a staggering financial cost. Public health care systems’ budgets are already strained by growing and aging populations, and many private insurer’s budgets are equally stretched. The current systems that most payers employ to manage their cash flow are not structured to absorb a sudden onslaught of very expensive prescriptions for a large portion of their covered population. Despite this, developers of new regenerative medicines tend to focus on the demands of regulators, not payers, in order to be compliant throughout the clinical trials phases, and to develop a product that ultimately will be approvable. It is not advisable to assume that an approved product will automatically become a reimbursed product, as examples from current practice in hematopoietic stem cell transplantation in the U.S. demonstrate; similarly, in Europe numerous Advanced-therapy Medicinal Products achieved market authorization but failed to secure reimbursement (e.g., Glybera, Provenge, ChondroCelect, MACI). There are however strategies and approaches that developers can employ throughout clinical development, in order to generate clinical and health economic data which will be necessary to demonstrate the value proposition of the new product and help ensure market access for patients; furthermore, performance based managed entry agreements coupled with post-launch evidence generation can help overcome challenges around product uncertainty at launch and reduce market access delays.
KW - Acute myelogenous leukemia
KW - Autologous stem cell transplantation
KW - Cellular therapy
KW - Hematopoietic stem cell transplantation
UR - http://www.scopus.com/inward/record.url?scp=85026355203&partnerID=8YFLogxK
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U2 - 10.1002/sctm.16-0487
DO - 10.1002/sctm.16-0487
M3 - Article
C2 - 28749065
AN - SCOPUS:85026355203
SN - 2157-6564
VL - 6
SP - 1723
EP - 1729
JO - Stem Cells Translational Medicine
JF - Stem Cells Translational Medicine
IS - 8
ER -