A recently published report from PharmaVentures, with the same title as this article, focuses on the critical application of the challenging political and market environment within the specific context of pricing and reimbursement (P&R) in the process of deal making in the pharmaceutical industry. The in-licensing of new drugs has increased dramatically over the past 30 years, and as deal making has intensified, the nature of deals has changed, and issues such as market dynamics and the uncertainty around future pricing have increased in profile. This can affect the valuation of licensing deals, and the message coming clearly from P&R dynamics is that traditional models need frequent revision. This article takes a look at three of the nine chapters of the report: those on the current P&R environment (Chapter 3), pharmacoeconomics and the future for pricing value (Chapter 7), and solutions for deal makers #8211; the last chapter, which gives advice on valuation components and future drivers of value.