Costly Oncology Drugs Face ICER Scrutiny and Calls for Value-Based Pricing

Novel drugs used in cancer treatment, including chimeric antigen receptor (CAR)-T cell therapies, are increasing in popularity. However, their cost continues to alarm patients, healthcare payers, and providers. Reports released by the independent Institute of Clinical and Economic Review (ICER) are at odds with pharma’s pricing of oncology drugs. One CAR-T cell therapy, Abecma (idecabtagene vicleucel), is priced at $419,500 per year. ICER recommends a price decrease of up to 54%.

“Deviations from the [value-based] pathways would result in financial penalties and adherence, in bonuses. If oncologists had a strong enough incentive to avoid prescribing low-value treatments, pressure to lower drug prices would follow, in their estimation, and drugmakers would start to develop drugs with value in mind.” Read more here.

(Source: Peter Wehrwein, Managed Healthcare Executive, 7/18/21)