Global drug pricing continues to ignite fresh controversies as health policy makers, government health programs, health insurers, and pharmaceutical companies meet in heated debate. Solutions for health around the world rely on stakeholders having a clear understanding of the structure and logic behind drug pricing, but the complexities of the subject have generated more heat than light.
Industry expert Ed Schoonveld contributes a fundamental reference work that demystifies drug pricing practices within pharma and biotechnology companies. The Price of Global Health: Drug Pricing Strategies to Balance Patient Access and the Funding of Innovation (Second Edition) thoroughly examines and clearly articulates all factors that influence the process of setting drug prices. A thoughtful work on a difficult, widely misunderstood topic, the book is at the same time a fascinating read.
Understanding Dynamics of Drug Pricing:
The book is made up of five parts, comprising 31 chapters. The chapters follow a logical sequence, but each one can also stand on its own as an individual article:
- Part A introduces the reader to the basics of pharmaceutical market access and pricing. Its chapters cover the primary challenges facing all stakeholders and review some of the existing approaches to these challenges.
- Part B describes some new structures and frameworks that are being proposed to align strategic thinking between all pay0r segments. This section also includes a detailed discussion of trade-offs encountered in each of the main stages of a drug’s life cycle.
- Part C delves into worldwide payor and pricing research, putting forth ways to develop global frameworks described in Part B while balancing political, financial, and ethical considerations. This section also drills down into the details of two specialty areas: oncology drug and orphan drugs.
- Part D focuses on how corporate pricing functions affect market access and where negotiation can occur. The author also discusses managed entry agreements and risk sharing as part of the implementation process.
- Part E provides in-depth descriptions of drug pricing environments in each of the 13 nations that comprise the world’s top pharmaceutical markets. These individual sections provide a reference foundation for the discussions offered in Parts A through D.
A preface by the author establishes the context for why he wrote the book and how he anticipates that it will contribute to the conversation on pharmaceutical access and pricing. A second preface and a new introduction, written especially for this edition, outline the global changes that led Mr. Schoonveld to add extensive updates. Andrea Mantovani, Sanofi Italy’s head of value and patient access, provides an enthusiastic foreword.
Hundreds of charts and figures, a multi-page list of organizational abbreviations, and a carefully constructed index add value to this reference work.
New Material in the Second Edition:
In the three years since the first edition of this book was published, the world has seen major shifts in the healthcare economy and in government policy. In the United States, the Affordable Care Act (ACA) has transformed payor systems and added a radically new, complex regulatory framework. Meanwhile, recession and austerity measures have affected the prescription drug environment in Europe. This includes AMNOG (Pharmaceuticals Market Reorganization Act) in Germany and -medico-economic requirements in France. Emerging markets also contribute to a new global health care climate, with China now standing as the world’s third-largest consumer of prescription drugs.
The second edition of The Price of Global Health contains four entirely new chapters covering payor value story development, oncology, orphan drugs, and payor negotiations. Mr. Schoonveld has also made extensive additions to address these shifts in the marketplace.
“Ed Schoonveld does an extraordinary job of making one of the most complex and vital topics in the industry intelligible to both new and experienced audiences. Best of all, he leverages case studies and straightforward frameworks to provide a pragmatic approach for mastering the theory of global pricing and access. I keep his book in easy reach for my own reference or to share with others.” Susanne Laningham, Executive Director Global Value Access and Policy, Amgen Inc.
Why This Book Is Needed:
Drug pricing is an exceptionally complex topic due to the market exclusivity granted by patents and the extensive buying power of government payors. General pricing principles do not apply in a straightforward way to the global pharmaceutical market, and confrontations between patients, governments, insurers, and manufacturers are intensifying. Mr. Schoonveld writes: “In all my years of consulting … I have never seen the political and public squabble of this topic reach such heights as it has this past year. Widespread epidemics and rising death rates have intensified, not abated, the big ‘drug pricing debate’ in the three years since I wrote the first edition.”
“The Price of Global Health is the most informative and comprehensive book I have read on the topic of global pharmaceutical pricing and market access.” David Kaplan, senior adviser of global payor market research at Eli Lilly
About the Author:
A leading expert on global pharmaceutical pricing and market access, Ed Schoonveld is a managing principal at ZS Associates in New York and is the leader of ZS’s market access and pricing practice. His past experience includes head of global market access and pricing functions at Wyeth, Lilly, and Bristol-Myers Squibb (BMS), and as a consulting leader at Cambridge/IMS and a number of other organizations. Mr. Schoonveld holds an MS degree from the Delft University of Technology in the Netherlands and an MBA from the Anderson School of Management at the University of California at Los Angeles.