A new approach to pharmaceutical pricing based on patients' willingness to pay

Trop Med Int Health. 2018 Dec;23(12):1326-1331. doi: 10.1111/tmi.13157. Epub 2018 Oct 24.

Abstract

Objectives: Pharmaceutical pricing is an important and contentious issue in middle- and low-income countries. The present study evaluated a value-based pricing system for estimating the price of interferon-beta (IFN-β).

Methods: Prices were estimated through the Willingness to Pay (WTP) system using the Discrete Choice Experiment (DCE) from the viewpoint of MS patients, levels of attributes and patients' willingness to pay for these attributes.

Results: The results indicate that the new approach to pricing medicines leads to more integrated prices than the current system. The current prices of four brands were higher than their pharmaceutical market price; the prices of other brands were consistent with it.

Conclusion: Application of the proposed pricing system will help pharmaceutical companies make realistic price estimates of their products while accounting for patient preferences, which may enhance patients' adherence to treatment.

Keywords: analyse conjointe; conjoint analysis; discrete choice experiment; expérience de choix discret; interferon-beta; interféron bêta; tarification basée sur la valeur; value-based pricing; volonté de payer; willingness to pay.

MeSH terms

  • Commerce / economics
  • Commerce / methods
  • Commerce / statistics & numerical data
  • Costs and Cost Analysis / economics*
  • Costs and Cost Analysis / methods
  • Costs and Cost Analysis / statistics & numerical data
  • Drug Costs / statistics & numerical data*
  • Humans
  • Interferon-beta / economics*
  • Iran
  • Patient Preference / statistics & numerical data*
  • Surveys and Questionnaires

Substances

  • Interferon-beta