Pharma Deals Review, Vol 2008, No 91 (2008)

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Pay-for-Performance Deals

Business Review Editor

Abstract


In October 2007, Janssen-Cilag proposed the UK National Health Service to refund costs for Velcade® (bortezomib) in patients whose tumors do not shrunk sufficiently after a specified treatment period. The article suggests that this radical pricing approach indicate the necessity on the part of the pharma industry to introduce new pay-for-performance strategies. The price deals tied to individual drugs facilitate the early controlled launch of innovative products, which would also reduce the costs and time of phase 3 trials.



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