Now this looks like a bright idea! Let’s actually talk to the ultimate payers and give them some idea what we’re thinking of moving through the development pipeline so that the payers can tell us up front what they might be prepared to pay for.
According the the Wall Street Journal this morning, GlaxoSmithKline and Novartis have both sat down with some of the major European payers in recent months to give government health-care systems the opportunity to suggest which drugs should be advanced in the companies’ research pipelines.
Of course there are no guarantees, because what any government is actually prepared to pay for will depend on the political realities of the times, not to mention the final effectiveness and safety of each specific product demonstrated in pivotal clinical trials. However, by seeking out guidance on what government considers to be “good opportunities,” one has at least demonstrated one’s understanding of the reality that there is limited value in seeking to develop drugs that national governments are not prepared to pay for.
Apparently GSK “will change some of its development plans” as a consequence of their meetings, according to CEO Andrew Witty. How much will the plans change? We don’t know yet. However, it is probably safe to say that these changes will become evident as analysts watch which drugs in the GSK pipleine get pushed into Phase II and Phase III clinical trials as priorities.
Filed under: Business strategy, Drug approvals and regulation, Drug development / clinical trials, Health and drug costs, health economics
