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Roche Experimenting With New Pricing Models In Oncology

Cancer drug prices are unsustainable and creative approaches are needed, Roche’s COO Daniel O’Day says. The firm’s moves into emerging markets are a lab for new methods, though the real test will come as the more expensive drugs are used in combination.

The time has come for Roche to revise its approach to oncology drug pricing, Pharmaceuticals Division Chief Operating Officer Daniel O’Day stated at an analyst briefing held at the American Society for Clinical Oncology annual meeting June 2. Payment will need to move away from volume, especially as expensive combinations become more widespread in treating cancer, O’Day suggested. “The days of looking at per-milligram price, I think for us in many countries, and certainly when we look at the next three years, it’s unsustainable,” he acknowledged. “It's unsustainable to suggest that we're just going to simply add another therapy at $8,000 to $10,000 a month on top of each other and expect constrained health care systems to be able to pay for that. So we have to be a bit more creative about it,” he said.

It’s a change that’s been a long time coming. As expensive drugs like Avastin (bevacizumab) move into new settings with...

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