For Whom the Price Escalates: High Price and Uncertain Value of Cancer Drugs

Gyeongseon Shin, Hye-Young Kwon and SeungJin Bae
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Gyeongseon Shin: College of Pharmacy, Ewha Womans University, Seoul 03760, Korea
Hye-Young Kwon: Division of Biology and Public Health, Mokwon University, Deajeon 35349, Korea
SeungJin Bae: College of Pharmacy, Ewha Womans University, Seoul 03760, Korea

IJERPH, 2022, vol. 19, issue 7, 1-4

Abstract: The price of cancer drugs has skyrocketed, yet it is not clear whether their value is commensurate with their price. More cancer drugs are approved under expedited review, which considers less rigorous clinical evidence, yet only 20% of them show an overall survival gain in the confirmatory trial. Moreover, clinical data are often generated based on small, single-arm studies with surrogate outcomes, challenging economic evaluation. With their high price and uncertain (marginal) clinical value, cancer drugs are frequently rejected by health technology assessment (HTA) bodies. Therefore, agencies, including the UK’s National Institute for Health and Care Excellence (NICE), have adopted cancer drug funds (CDF) or risk-sharing schemes to provide extra access for expensive cancer drugs which fail to meet NICE’s cost effectiveness threshold. With rising pricing and fewer new cancer medications with novel mechanisms of action, it is unclear if newly marketed cancer therapies address unmet clinical needs or whether we are paying too much. Transparency, equity, innovativeness, and sustainability are all harmed by a “special” approach for cancer medications. If early access is allowed, confirmatory trials within a certain time frame and economic evaluation should be conducted, and label changes or disinvestment should be carried out based on those evaluations.

Keywords: cancer drug; oncology drug; value; expedited review; economic evaluation (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2022
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