Indication-Based Pricing Could Be Windfall For Interleukin Inhibitors

Express Scripts' plan to reimburse at levels according to value of specific indications in inflammatory diseases will create more space for new entrants with proven value.

Express Scripts Holding Co.'s implementation of indication-based pricing in inflammatory diseases could spur a big market shift toward anti-interleukin-17 drugs for psoriasis – Novartis AG's Cosentyx in particular – at the expense of TNF-inhibitors. It also signals an important shift in reimbursement strategy with implications across other markets.

The pharmacy benefit manager announced plans on Sept. 8 to implement indication-specific pricing as part of its Inflammatory Conditions Care Value Plan, with rollout set for 2017. The plan also...

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