‘Principles for Collaborative, Mutually Acceptable Drug Pricing,’ concludes the PharmaDiplomacy Dialogue, an EU/US, multi-stakeholder leadership initiative which analysed how to rebuild trust between the pharmaceutical industry and its key stakeholders, focusing on the critical issue of drug pricing. The report sets out a negotiation framework to navigate the multiple and competing interests of different healthcare stakeholders. It establishes what will be required from payers, pharma and patients to move towards mutually acceptable drug pricing.
The Principles aim to:
- Provide more targeted and better outcomes for patients and providers.
- Address payer concerns about affordability and budget impact by providing greater certainty and control on price, data and volume.
- Support and encourage innovation within the drug industry.
Sir Andrew Witty, Chief Executive Officer, GSK, said: “Pricing of medicines must balance the needs of multiple stakeholders, striking a fair balance between rewarding innovation, managing cost pressures in healthcare systems, and ensuring patient access to the medicines they need. Achieving that balance requires new thinking, improved collaboration and creativity. The commitment to working together shown by different stakeholders during the PharmaDiplomacy process was encouraging, and the principles agreed can form a platform to build trust and find new solutions to the current challenges.”
Jane Griffiths, Company Group Chairman, EMEA, Janssen, said: “Over the last century people’s life expectancy around the globe has risen by an amazing 35 years, and much of that improvement can be attributed to pharmaceutical medicines and vaccines. To ensure the pharmaceutical industry continues to innovate and sustain the delivery of value to society, we must improve our stakeholder collaboration, which can only be done with a strong foundation of trust. It is our hope that this PharmaDiplomacy tool will help structure this focus on achieving better partnerships, built on mutual trust.”
Sophia Tickell, PharmaDiplomacy Director, said: “Using trust as our starting point allowed PharmaDiplomacy participants to be clear about what they need from each other in order to collaborate. The result was a unique document that reflects the views of all those with a stake in a better approach to drug pricing than we have today.”
Ad Schuurman, President, The Medicine Evaluation committee (MEDEV), said: “Payers are interested in finding new ways of collaborating with companies, and ensuring that the interests of healthcare systems aren’t outweighed by the interests of investors. The PharmaDiplomacy dialogue demonstrated how these different perspectives can be navigated to achieve outcomes that will benefit society as a whole.”
Mark Skinner, patient advocate & President, Institute for Policy Advancement, said: “Patients have a unique perspective which is distinct from that of pharma, payers and health systems. An inclusive system that values the input of patient perspectives throughout drug development, pricing and its delivery will improve trust. Ensuring alignment on the value of a new therapy requires that patients trust that the value assessment process and their knowing that value was determined based on outcomes directly relative to patients.”
Charlotte Ersbøll, Corporate Vice President, Stakeholder Engagement, Novo Nordisk, said:
“PharmaDiplomacy was founded on the belief that despite our differences we share the same objective – better patient outcomes. But we have landed ourselves in an unsustainable situation that offers us two options. To go down an increasingly antagonistic route where everyone loses, but mostly the patient. Or to start a new conversation, built on mutual trust, to ensure that everyone’s interests are respected and taken into consideration. That is what we call pharma-diplomacy. With the tool we have developed, we hope we can operationalise a new way of collaborating where everyone wins, not least the patients.”
Dr Rober Weil, Chief Medical Executive, Geisinger Northeast, said: “The overarching commitment of the PharmaDiplomacy Working Group was to bring better, safer, and more efficacious medicines to the most people, at a fair and sustainable price. And, in doing so, we wanted to encourage mechanisms that reward innovative pharmaceutical companies for investing more in great medicines. With trust comes the ability to speak the truth, with compassion and respect. This was the mindset in which all members of the PharmaDiplomacy Working Group approached this question – and the result is an efficient, ethical, and workable framework for moving forward.”
Richard Evans, Founder & Managing Director, Sector Sovereign, said: “Only through open-minded dialogue will payors, drug manufacturers, and other stakeholders engineer a soft landing for the drug pricing question. We’ve clearly reached a tipping point; one in which a negotiated solution is in everyone’s best interest. My hope is that an open-minded dialogue in fact takes place, and I believe the Principles set forth by the PharmaDiplomacy Working Group can guide stakeholders to a mutually beneficial and sustainable solution.”
Becky Buell, Co-Director of PharmaDiplomacy and Partner, Meteos, said: “The PharmaDiplomacy Dialogue demonstrated that, even on the thorniest issues, solutions can be found when an enlightened group of leaders is willing to listen carefully to the needs of all stakeholders, to put biases and assumptions aside, and to focus on the best possible outcome for patients and society.”