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COVID-19 Shifts ICER Pricing Targets, Creating New Hurdles For Drug Developers

 
• By Sarah Karlin-Smith

With a remdesivir analysis pushing cost-recovery models and lower thresholds for cost-effectiveness, ICER's COVID-19 pricing framework will likely result in lower pricing benchmarks for drugs than the group would have issued under its typical analysis framework. Critics say this is the opposite of what should be incentivized in an emergency.

Cost effective check approval sign concept illustration design graphic
It will be harder for drug companies to meet ICER's new COVID-19 pricing targets. • Source: Shutterstock

New pricing models being used by The Institute for Clinical and Economic Review to evaluate COVID-19 treatments may put drug sponsors on the defensive just as industry is hoping its works to combat the crisis could burnish its public image. ICER employed the new models because of the unique nature of the global pandemic, and they appear likely to result in lower pricing benchmarks for drugs than the group's typical analysis framework would.

ICER’s “Alternative Pricing Models for Remdesivir and Other Potential Treatments for COVID-19,” published on 1 May, describes its current thinking on Gilead Sciences Inc.’s COVID-19 antiviral and also offers hints as to how the group will analyze other treatments for COVID-19 as they become available. The US Food and Drug Administration granted remdesivir an emergency use authorization the same day

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