The use of value-based contracts in the US may rise in future, but manufacturers need to prepare now to fully exploit any opportunities

Value-based contracts (VBCs) may have been so slow to gain traction in the US, but as our new white paper argues, this is set to change. Via a broad analysis of VBCs, their current market penetration and the challenges they pose, this paper concludes that the potential for growth is significant. While the difficulty of measuring performance in real world conditions, allied to regulatory uncertainty and the implications for government pricing are real constraints, the interest of payers in VBCs is increasing. This represents an opportunity for proactive manufacturers to enhance their long-term competitiveness by developing integrated capabilities, processes and commercial models for VBCs now. The case of Novartis’ Entresto™, outlined in the paper, is an interesting reference point. In an industry with such long lead times, the negative consequences of waiting and trying to respond in real time to future opportunities on a brand-by-brand basis could be severe. Ultimately, it’s up to organisations to see the opportunities that VBCs may bring, and invest now to realise their true value.

 

Click here to read our white paper

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