“....under the new system of value-based pricing, the Government would apply weightings to the benefits provided by new medicines, which would imply a range of price thresholds reflecting the maximum we are prepared to pay for medicines. These thresholds or maximum prices would be explicitly adjusted to reflect a broader range of relevant factors so they could be used to calculate the full value of a new product.
The Government proposes that the price threshold structure is determined as follows:
- there would be a basic threshold, reflecting the benefits displaced elsewhere in the NHS when funds are allocated to new medicines;
- there would be higher thresholds for medicines that tackle diseases where there is greater “burden of illness”: the more the medicine is focused on diseases with unmet need or which are particularly severe, the higher the threshold;
- there would be higher thresholds for medicines that can demonstrate greater therapeutic innovation and improvements compared with other products;
- there would be higher thresholds for medicines that can demonstrate wider societal benefits.”