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INTRODUCTION TO
MARKET ACCESS FOR
PHARMACEUTICALS
INTRODUCTION TO
MARKET ACCESS FOR
PHARMACEUTICALS
Mondher Toumi
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Contents
Foreword ....................................................................................................................................................................................xix
Acknowledgments ......................................................................................................................................................................xxi
Author ......................................................................................................................................................................................xxiii
Common Abbreviations ............................................................................................................................................................ xxv
Introduction .............................................................................................................................................................................xxvii
v
vi Contents
13.7 Policies Targeted at Wholesalers, Pharmacists, Physicians, and Patients ............................................. 125
13.7.1 Wholesaler Mark-Up............................................................................................................. 125
13.7.2 Pharmacy Mark-Up ............................................................................................................... 125
13.7.3 Generic Substitution.............................................................................................................. 125
13.7.4 International Nonproprietary-Name Prescribing .................................................................. 125
13.7.5 Prescription Guidelines ......................................................................................................... 126
13.7.6 Monitoring of Prescribing Behavior ..................................................................................... 126
13.7.7 Pharmaceutical Budgets Defined for Physicians .................................................................. 126
13.7.8 Prescription Quotas ............................................................................................................... 126
13.7.9 Financial Incentives for Physicians ....................................................................................... 126
13.7.10 Financial Incentives for Pharmacists .................................................................................... 126
13.7.11 Copayment for Patients ......................................................................................................... 126
References ........................................................................................................................................................... 126
20.8 Policies Targeted at Wholesalers, Pharmacists, Physicians, and Patients .............................................. 160
20.8.1 Wholesaler and Pharmacy Mark-Up...................................................................................... 160
20.8.2 Generic Substitution .............................................................................................................. 161
20.8.3 International Nonproprietary Name (INN) Prescribing ......................................................... 161
20.8.4 Prescription Guidelines .......................................................................................................... 161
20.8.5 Monitoring of Prescribing Behavior ...................................................................................... 161
20.8.6 Pharmaceutical Budgets Defined for Physicians ................................................................... 161
20.8.7 Prescription Quotas ................................................................................................................ 161
20.8.8 Financial Incentives for Physicians ....................................................................................... 161
20.8.9 Financial Incentives for Pharmacists ..................................................................................... 161
20.8.10 Copayment for Patients.......................................................................................................... 161
References ............................................................................................................................................................161
xix
xx Foreword
resistant to change, even if it only means renaming the inte- Although I have emphasized the novelty of Professor
grated, multidisciplinary training they are already doing under Toumi’s case for the unifying concept of market access,
a new label. It is difficult to think of a better term than market readers of this book will also be astounded by the breadth
access that captures the essence of these activities. Even in my and depth of his knowledge and understanding of the real-
own 12 years working in the industry, our unit evolved from world institutions affecting market access in each of the
pharmacoeconomics to health economics (to consider diagnos- individual chapters for nine major pharmaceutical markets:
tics and devices), and to economics (to add pricing and reim- France, Germany, Italy, Spain, Sweden, the United Kingdom,
bursement considerations). And subsequently this has evolved Belgium, the United States, Japan, and China. In addition,
to payer strategy (to focus on strategic thinking to overcome these themes are extended to the related specific issues, such
market access barriers). The conceptual innovation of grouping as the market for vaccines, orphan drugs, external reference
these activities under market access is understandably appeal- pricing, early advice, early access, and market access agree-
ing, and it is essentially facing a market test at the moment. ments. I would encourage you to read this book, and learn and
I have considerable doubt about whether and when this enjoy contemplating these important insights and connections
might reach a tipping point resulting in market access becom- that Professor Toumi is sharing with us.
ing the most widely used term for these activities. But I have
no doubt that Professor Toumi has done all of us a great ser- Lou Garrison
vice by exploring and clarifying the utility of this concept, Pharmaceutical Outcomes Research & Policy Program
and identifying its relevance to a wide range of phenomena Department of Pharmacy
such as health technology assessment, market access agree- Departments of Global Health and Health Services
ments, value propositions, and value-based pricing. University of Washington
Acknowledgments
I thank everyone who helped me complete this book Thanks to Pr. Lou Garrison and Lieven Annemans for your
by providing review, input, comments, and continuous preface and postface.
encouragement. Dear all, without your effective support,
To my family for their continous support!
I would have not been able to bring my work to a success-
ful completion. Un clin d’œil à la Commune de Paris
Very special thanks to Szymon Jarosławski and Cécile
J’aimerai toujours le temps des cerises
Rémuzat for your continuous review and input along this
C’est de ce temps-là que je garde au coeur,
book’s development.
Une plaie ouverte.
Thanks to Samuel Aballéa, Lieven Annemans, Charles
Et Dame Fortune en m’étant offerte
Sabourin, Anna D’Ausilio, Emna El Hammi, Jaime Espin,
Ne pourra jamais calmer ma douleur...
Clément François, Shunya Ikeda, Patrycja Jaros, Åsa Kornfeld,
J’amerai toujours le temps des cerises
Stefan Lhachimi, Abayomi Odeyemi, Florence Baron Papillon,
Et le souvenir que je garde au coeur.
Steve Sherman, Marion Thivolet, Keith Tolley, and Katherine
Eve Young for your review. Le temps des Cerises de Jean Baptiste Clément
xxi
Author
Mondher Toumi, MD, MSc (biostatistics), MSc (biological Lyon, France. In the same year, he was appointed director
sciences, option pharmacology), PhD (economic sciences) of the chair of public health and market access. He launched
is a professor of public health at Aix-Marseille University, the first European University Diploma of Market Access
Marseille, France. After working for 12 years as research (EMAUD), an international course already followed by
manager in the Department of Pharmacology at the University approximately 400 students. In addition, he recently created
of Marseille, he joined the Public Health Department in 1993. the Market Access Society to promote education, research,
From 1995, he pursued a career in the pharmaceutical indus- and scientific activities at the interface of market access,
try for 13 years. health technology assessment (HTA), public health, and
Mondher Toumi was appointed global vice president health economic assessment. He is the editor-in-chief of the
at Lundbeck A/S in charge of health economics, outcome Journal of Market Access and Health Policy (JMAHP), which
research, pricing, market access, epidemiology, risk manage- was recently granted PubMed indexation.
ment, governmental affairs, and competitive intelligence. In Toumi is also a visiting professor at Beijing University
2008, he founded Creativ-Ceutical, an international consult- (Third Hospital), China. He is a recognized expert in health
ing firm dedicated to support health industries and authori- economics and an authority on market access and risk man-
ties in strategic decision-making. In February 2009, he was agement. He has authored more than 250 scientific publica-
appointed professor in the Department of Decision Sciences tions and communications, and has contributed to several
and Health Policies at Claude Bernard University Lyon 1, books.
xxiii
Common Abbreviations
ACIP Advisory Committee on Immunization Practices DCE Discrete choice experiment
AEMPS Agencia Española del Medicamentos y Productos DDD Daily defined dose
Sanitarios/The Spanish Agency for Medicines DERP Drug effectiveness review project
and Health DGFPS Dirección General de Farmacia y Productos
AETS Agencia de Evaluacion de Tecnologias Sanitarias/ Sanitarios/The Directorate General of Pharmacy
The National Health Technology Assessment and Health Products
Agency DH Department of Health
AFR Annual financial return DIMDI Deutsches Institut für Medizinische Dokumen-
AGES Austrian Agency for Health and Food Safety tation und Information/The German Institute of
AHRQ Agency for Healthcare Research and Quality Medical Documentation and Information
AIFA Agenzia Italiana del Farmaco/Italian Medicines DMA Danish Health and Medicines Authority
Agency DPO Drug Pricing Organization
AMNOG Arzneimittelmarktneuordnungsgesetz/The Act of DRG Disease-related group
the Reform of the Market for Medicinal Products DT Drug tariff
AMP Average manufacturer price EBA Early benefit assessment
ASL Azienda Sanitaria Locale/Local Health Unit EMA European Medicines Agency
ASMR Amélioration du Service Médical Rendu EU European Union
(improvement in actual benefit) FDA Food and Drug Administration
ASNM Agence nationale de sécurité du médicament et FUL Federal upper limit
des produits de santé G-BA Gemeinsamer Bundesausschuss/The Federal
ASP Average sale price Joint Committee
AWP Average wholesale price GBS Guillain–Barré syndrome
BfArM Bundesinstitut für Arzneimittel und GKV-SV Gesetzliche Krankenversicherung-Spitzenverband/
Medizinprodukte/The Federal Institute for The National Association of Statutory Health
Drugs and Medical Devices Insurance Funds
BLA Biologics License Application GU Gazzetta Ufficiale/The Official Journal of the
BMG Bundesministerium für Gesundheit/The Federal Italian Republic
Ministry of Health HAS Haute Autorité de Santé/French National Authority
CA Commercial agreement for Health
CBER Center for Biologics Evaluation and Research HC Health Council
CDC Centers for Disease Control and Prevention HEOR Health Economics and Outcomes Research
CE Cost-effectiveness HHS Department of Health and Human Services
CED Coverage with evidence development HPV Human papilloma virus
CEPS Economic Committee of Health Products HTA Health technology assessment
CHIP Children’s Health Insurance Programme ICER Incremental cost-effectiveness ratio
CIPM Comisión Interministerial de Precios de los INN International nonproprietary name
Medicamentos/The Interministerial Commission IQWiG Institut für Qualität und Wirtschaftlichkeit im
for Pricing of Medicinal Products Gesundheitswese/The Institute for Quality and
CISNS Consejo Interterritorial del Sistema Nacional de Efficiency in Healthcare
Salud/Spanish Interterritorial Council ITR Index Thérapeutique Relatif
CMS Centers for Medicare and Medicaid Services JCVI Joint Committee on Vaccination and Immunisation
CPR Comitato Comitato Prezzi e Rimborso/Pricing LFN Läkemedelsförmånsnämnden/Pharmaceutical
and Reimbursement Committee Benefits Board
CST Comitato Scientifico e Tecnico/Scientific-Technical MA Market access
Commission MAA Market access agreement
CT Commission de la Transparence MAC Maximum allowable cost
CTC Conditional treatment continuation MAH Marketing Authorization Holder
CTV Technical Committee on Vaccinations MAu Marketing authorization
CVZ College voor Zorgverzekeringen/The National MCDA Multicriteria decision analysis
Health Care Institute MHLW Ministry of Health, Labour and Welfare
DAHTA Deutsche Agentur für Health Technology MHRA Medicines and Healthcare Products Regulatory
Assessment/The German Agency of Health Agency
Technology Assessment MoH Ministry of Health
xxv
xxvi Common Abbreviations
MOHRSS The Ministry of Human Resources and Social QALY Quality adjusted life year
Security RCT Randomized Controlled Trial
MPA Läkemedelsverket/The Medical Products Agency R&D Research and development
MS Multiple sclerosis RP Reference pricing
MSSSI Ministerio de Sanidad, Servicios Sociales e RSA Risk sharing agreement
Igualdad/The Ministry of Health, Social Services SBU Statens beredning för medicinsk och social
and Equality utvärdering/Swedish Agency for Health Technology
MTA Multiple technology assessment Assessment and Assessment of Social Services
NDRC The National Development and Reform SGB Sozialgesetzbuch/ Social Code Book
Commission SGCMPS Subdirección General de Calidad de Medicamentos
NHFPC The National Health and Family Planning y Productos Sanitarios/The General Subdirectorate
Commission of Quality of Medicines and Health Products
NHI National Health Insurance SHI Statutory Health Insurance
NHS National Health Service SMC Scottish Medicines Consortium
NICE National Institute for Health and Care Excellence SMR Service Médical Rendu/Actual Medical Benefit
NIP National Immunization Program SNS Sistema Nacional de la Salud/The National Health
NITAG National Immunization Technical Advisory Group System
NVC National Vaccination Calendar SOP (Farmaci) Senza Obbligo di Prescrizione/
OECD The Organisation for Economic Co-operation Nonprescription pharmaceuticals with advertis-
and Development ing prohibition
OsMED Osservatorio Nazionale sull’impiego dei STA Single technology assessment
Medicinali/National Observatory on the Use of STIKO Standing Vaccination Committee (Ständigen
Pharmaceuticals Impfkommission)
OTC Over-the-counter TC Transparency Committee
P&R Pricing and reimbursement TFR Tarif forfaitaire de responsabilité
P4P Payment for performance TLV Tandvårds- och läkemedelsförmånsverket/The
PAS Patient access scheme Dental and Pharmaceutical Benefits Agency
PBAC Pharmaceutical Benefits Advisory Committee TVs Therapeutic vaccines
PBMSHG Pharmacy Benefits Management Strategic UNCAM Union nationale des caisses d’assurance maladie
Healthcare USP United States Pharmacopeia
PEC Department of Defense Pharmacoeconomic VA Veterans Affairs
Center VBP Value based pricing
PEI Paul Ehrlich Institute VENICE Vaccine European New Integrated Collaboration
PFN Prontuario Farmaceutico Nazionale/The National Effort
Pharmaceutical Formulary WAC Wholesale acquisition cost
POM Prescription-only medicines ZIN Zorginstituut Nederland/National Healthcare
PPRS Pharmaceutical Price Regulation Scheme Institute
PV Preventive vaccine
Introduction
Inadequate market access has become the primary reason for • Draw a mapping of market access stakeholders
commercial failure of any new pharmaceutical launch. It is • Present basic knowledge in decision sciences applied
often referred to as the fourth hurdle in reaching the patients, to public health
following the need to evidence the traditional three hurdles of • Review the latest regulations and guidelines in main
efficacy, safety, and quality in order to obtain the regulatory global markets, including Europe, United States, and
marketing authorization. Asia
Nowadays, market access has become the primary driver • Review novel pharmaceutical policies such as risk-
for global income of any new drug in development. Without a sharing, managed entry agreements, early entry,
convincing strategy in place to evidence and communicate the early dialogue, vaccine, and orphan drugs market
product value to decision makers, the drug will fail to reach access policies
its intended commercial value. This requires understanding • Discuss the best practices in market access across
the key decision drivers. case studies
Market access is a complex process with as many defi-
nitions as individuals. Even prestigious publications may
KEY LEARNINGS
contain definitions that are questionable, inappropriate, or
inaccurate. This book attempts to harmonize and unify defini- • Being able to understand the grounds for a market
tions, concepts, and history related to the market access field. access strategy with a multidisciplinary approach
The approach presented in this book is situated at a crossroads • Identify the stakeholders and develop a market
of multiple disciplines that form an integral part of a success- access plan that matches their expectations
ful approach to market access. • Understand specificities of some geographies and
This book is based on an accredited course in this area some types of pharmaceutical products
out of the European Market Access University Diploma • Anticipate the future paradigm changes in market
(EMAUD) affiliated with the Market Access Society, France, access
and the Aix-Marseille University, Marseille, France.
WHO SHOULD READ?
OBJECTIVES OF THE BOOK
This book is intended for students and for industry and author-
• Present an advanced understanding of the market ity professionals in the fields of pharmaceuticals, medical bio-
access environment, concepts, and principles technology, and public health.
xxvii
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