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The potential value of risk based pricing for promoting innovation in biopharmaceuticals.

School of Medicine, Dentistry and Biomedical Sciences | PHD

Applications are now CLOSED
Funding
Funded
Reference Number
SMED-2251-1005
Application Deadline
28 November 2024
Start Date
1 October 2025

Overview

The prices of new pharmaceuticals have increased by orders of magnitude over the last two decades, and emerging gene therapies are expected to be priced a magnitude higher than the cellular therapies such as monoclonal antibodies. This study will develop, apply and test the risk based pricing framework described by Kirwin and colleagues, and characterise its impact on the incentives for innovation in the context of (a) a new therapy for a rare genetic disorder with very high unmet need, and (b) a more prevalent oncology indication with a substantial portfolio of effective current therapies. The project will equip the successful candidate with advanced skills in cost effectiveness modelling, research design and pharmaceutical pricing, and contribute to the internationally important debate on how to balance current financial sustainable drug pricing with incentivising on-going pharmaceutical research and investment to address substantial unmet need.

The price of new pharmaceutical innovations are such that the health systems find it difficult to make them available to all patients who could clinically benefit, because the total cost of doing so would impact on the sustainability of comprehensive population health care. As a result health care payers and the governments that typically fund them are increasingly looking to drive down the prices they pay. However, pharmaceutical companies warn that such actions threaten the long term viability of the investment in pharmaceutical research and development that creates the innovations of the future. Kirwin and colleagues have proposed a risk based pricing framework which would allow payers to incentivize research and development in the areas of greatest unmet need, where the uncertainty is highest and the riskiness of investment correspondingly elevated, at the same time as discouraging investment targeting therapies at well understood conditions where the risk is lower. This study will develop the theoretical underpinnings for the risk based pricing framework and then undertake research on health care payers risk attitudes under different scenarios. It will then apply the risk based pricing framework in high and low unmet need case studies. These studies will assess the real world feasibility of implementing risk based pricing and then, hold an international stakeholder workshop to examine its acceptability. Finally it will examine characterise the expected impact of applying the framework on the incentives for R&D investment in each of the case study indications.

Funding Information

Funded by the Department for the Economy (DfE). For UK domiciled students the value of an award includes the cost of approved tuition fees and maintenance support the 2025/26 rates are still to be confirmed (current rates for 2024/25 are Fees £4,786, Stipend £19,237). To be considered eligible you must have been ordinarily resident in the UK for the full 3-year period prior to the start of the studentship and you must be ordinarily resident in Northern Ireland on the first day of the start of the studentship. For further information about eligibility criteria please refer to the DfE Postgraduate Studentship Terms and Conditions at https://www.economy-ni.gov.uk/publications/student-finance-postgraduate-studentships-terms-and-conditions

Project Summary
Supervisor

Professor Christopher McCabe

More Information

c.mccabe@qub.ac.uk

Research Profile


Mode of Study

Full-time: 3 Years


Funding Body
DfE
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