MFN and IRP analysis for innovative oncology therapies
Analysis of the MFN pricing implications for high revenue innovative oncology therapies considering a global launch programme and application of GUARD/GLOBE models
Context
The Challenge
- There was a requirement for an analysis of the application of MFN on the global revenue potential for a selection of innovative oncology therapies
- This was needed to quantify the commercial risks associated with ex-US launch for new oncology assets, and potential variation according to whether MFN referencing is based on list or volume-weighted average net prices across global markets (adjusted for purchasing power parity)
Requirements
Project Objectives
- Complete a comprehensive analysis of the proposed MFN policy framework and practical implications for global pricing strategy development and implementation for innovative cancer therapies
- Analysis of the potential variation in US net pricing impact depending on referencing based on list or volume-weighted average net prices across global reference markets
- Scenario analysis depending on product availability across international reference markets and the scale of list/net price differential across reference markets
Methodology
Our Approach
- We supported with the development of potential scenarios regarding the global pricing corridor for the innovative oncology therapies (including expectations for list/net pricing differentials across MFN reference markets in North America, Europe and APAC)
- Detailed analysis was completed using the SyMAP framework to inform the implications for the US price benchmark/commercial opportunity, potential price/revenue variation according to agreed scenarios, and implications for the optimal commercial strategy
Outcomes
Value Delivered
- A clear analysis was provided regarding the commercial implications of the MFN policy framework, variation in the US pricing/commercial impact depending on agreed scenarios (including MFN referencing based on list or volume-weighted average net prices across global reference markets, adjusted for purchasing power parity) and strategic implications for the ex-US launch strategy/sequencing requirements for innovative oncology therapies
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