PHP15 - The Pricing and Reimbursement of Specialty Drugs in Key Asian Markets

Abstract

Of the new drugs that will be launched over the next 5 years, a significant proportion will be specialty drugs in cancer, hepatitis C, immunology, and rare diseases. In this context, we set to evaluate funding for specialty drugs in Asia. In this paper, we analyse reimbursement likelihood and pricing outcomes for a basket of 26 specialty drugs. We systematically abstracted data from publicly available pricing and reimbursement decisions in China, South Korea, Taiwan, Thailand, Malaysia and Indonesia, for a basket of 26 specialty drugs in the cancer, multiple sclerosis and rheumatoid arthritis therapy areas. Where price data was available, we compared the ex-manufacturer prices to French ex-manufacturer prices for comparable strengths, to evaluate the relative price outcomes. Reimbursement likelihood for the basket of specialty drugs varied between 0% (China - national reimbursement drug list) and 76.2% (Taiwan). Among the three specialty therapeutic areas analysed, oncology drugs had the lowest reimbursement likelihood across all markets with the exception of Taiwan. Reimbursement likelihood for newer drugs (defined as drugs with first global launch in or after 2009) was lower: 55.6% in Taiwan, 50% in Korea, 15.4% in Malaysia and 0% in China (NRDL or PRDL), Thailand and Indonesia. Of the drugs reimbursed, median price difference, compared to French prices were -30.96% in South Korea, +2.63% in Taiwan, and -28.17% in Thailand. Reimbursement likelihood of specialty drugs varies across individual markets considerably, and is low in general, across Asia. Considering specialty drugs are expected to constitute a significant proportion of new drugs that will be launched, payers and manufacturers need to consider innovative and alternate funding methodologies to fund specialty drugs.