The VPA – what is it, what is n N A penalty for success? A Penalty for Insufficient Market Research and Poor Forecasts A method of risk-sharing between the manufacturer and the public payer, Based on a pre-established relationship between drug prices and sales volume A method of limiting certain limits to sales forces (“armed with commercial agents”) In the VPA, The promoter of a particular drug accepts a price reduction for all sales that exceed a pre-agreed sales volume In the rebate agreements, the sponsor offers a discount (different size) on the costs of expenses increased above a grant cap/annual threshold set. This study analyzed the factors that contribute to an increase in the actual volume of sales compared to the quantities of drugs predicted under the Price Volume Policy (VPA) in South Korea. The volume of new drug sales listed on the national formula is tracked as part of the VPA policy. If the actual volume of sales exceeds the agreed volume by 30% or more, the drug is subject to a price decrease. Logistic regression assessed the factors related to whether the drugs were VPA price-reduction drugs. A generalized linear model, with gamma distribution and a log link, assessed the factors that influence the increase in actual volume relative to the expected volume of VPA price reduction drugs. Of 186 VPA-controlled drugs, 34.9% were price-reducing drugs. Drugs marketed in therapeutic markets by previously employed pharmaceutical companies were more VPA price-cutting drugs than drugs distributed by companies without prior employment. Drugs from multinational pharmaceutical companies were more VPA price-cutting drugs than domestic companies. More alternative drugs have been significantly associated with an increased chance of being VPA price-reducing drugs. Among VPA-reduced drugs, the actual volume rate was significantly higher than the expected volume for drugs with clinical benefit.
By focusing negotiation efforts on these targeted drugs, VPA policy can be managed more effectively with improved predictability of pharmaceutical quantities. APV vs. Discount agreements n n semantic… For a manufacturer, it is easier to accept the idea of discounts as a lower price (although both can lead to the same impact on sales) keywords: expected volume; THE VPA; Pharmaceutical spending Price-volume agreement. Reduction (2) n Absolute discount based on the price of an alternative drug (if the use of drug A above a certain level may be inconsistent with the PBAC`s cost-effectiveness recommendation). n (say $100) for sales of up to $15 million per year, but then you deliver the drug at the price of the cheaper alternative drug B (say $60) for each turnover over $15 million, which reduced the price difference for the government. For an additional indication for an existing drug, limit the total cost to the current PBS for the current indication (s) no more than $10 million. This will limit the cost of the new PBS indication to $10 million per year and render the need for a departmental audit unnecessary. n Example: the sponsor agrees to provide drug A at the agreed price of the drug For example: the use of a drug that is already mentioned on PBS and which costs $25 million per year is extended to treatment for another condition or indication. The sponsor agrees to reimburse the government for any costs in excess of $35 million (US$25-$10) in any given year. The cost of PBS for additional use will be limited to $10 million per year.
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