Takeda Pharmaceutical to Implement Outcomes-Based Pricing Model: Money-Back Guarantee if Treatment Fails

According to a report by Nikkei on April 29, Takeda Pharmaceutical Company Limited will adopt a sales model in which patients are charged based on the efficacy of new drugs. Discussions are initially focused on applying this approach to high-priced biologics scheduled for sale in Europe.Pharmaceuticalsproducts. Gene therapies and other drugs not covered by national health insurance have successively entered the market, with outcome-based payment models being actively utilized in Europe and the United States. Takeda, Japan’s largest pharmaceutical company, has prioritized the adoption of this model in overseas markets, and discussions on introducing such a system may also emerge within Japan.

Takeda has begun assessing profitability under a pay-for-performance scheme. Discussions are underway regarding sales in markets such as the UK, with launch expected as early as fiscal year 2019. Specifically, the model envisages full or partial reimbursement of drug costs if patients do not achieve therapeutic benefit after treatment.

Source: Global Times Author: Wang Huan