A new study in JAMA Oncology has set up a framework for establishing value-based pricing for all new oncology drugs entering the marketplace. Scientists from the Winship Cancer Institute of Emory University and Georgia Tech used an economic model to evaluate a new lung cancer drug, necitumumab, which is currently awaiting FDA approval. Previous studies have shown that the drug extends the life of patients with metastatic squamous lung cancer by about seven weeks.
The researchers used their economic model to factor medication and administration costs with life expectancy, frequency and management of adverse effects, and quality of life. The results demonstrated that the value-based price for necitumumab ranges between $563 and $1,309 per three-week cycle, which is significantly lower than most cancer drugs that have entered the marketplace recently.
Do you think all new cancer drugs awaiting approval should undergo value-pricing?