Value-Based Pricing: Do Not Throw Away the Baby with the Bath Water

@article{Neyt2017ValueBasedPD,
  title={Value-Based Pricing: Do Not Throw Away the Baby with the Bath Water},
  author={Mattias Neyt},
  journal={PharmacoEconomics},
  year={2017},
  volume={36},
  pages={1-3}
}
At a recent meeting in Amsterdam about fair pricing, which was sponsored by the UN Health Agency and the Dutch Government, the WHO Assistant Director-General Marie-Paule Kieny suggested value-based pricing is not feasible for a product that is indispensable. There were ‘serious reservations’ about a system that essentially puts a value on a life and then allows a drug to be priced up to that level [1]. If that was the approach behind value-based pricing then, indeed, this approach should be… CONTINUE READING
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