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Independent Global Market Access Consultant, Trainer and Writer

Managed entry agreements (MEAs) notionally saved the Italian healthcare system €220mn in 2022—an increase of 3.3% relative to 2022—according to new data from the Italian Medicines Agency (AIFA). However, it is important to bear in mind that savings are calculated relative to theoretical spending without MEAs, whereas prices would likely have been lower without MEAs. Several types of outcomes agreements are possible in Italy: 𝗥𝗶𝘀𝗸 𝘀𝗵𝗮𝗿𝗶𝗻𝗴 requires pharmaceutical companies to refund part of the treatment cost for non-responders. 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗯𝘆 𝗿𝗲𝘀𝘂𝗹𝘁𝘀 (𝗣𝗯𝗥) requires manufacturers to repay in full the treatment cost for non-responders. PbR is used to manage a high degree of uncertainty for drugs that are perceived to have an unfavourable benefit/risk ratio at launch. Virtually all of the active outcomes agreements are PbR schemes. 𝗦𝘂𝗰𝗰𝗲𝘀𝘀 𝗳𝗲𝗲 deals involve payments only if outcomes targets are met. 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗮𝘁 𝗿𝗲𝘀𝘂𝗹𝘁𝘀 (𝗣𝗮𝗥) is a variation on the success fee model, with staggered payments made if outcomes are met at specified timepoints. AIFA also operates two types of financial agreements: 𝗖𝗼𝘀𝘁 𝘀𝗵𝗮𝗿𝗶𝗻𝗴 provides for a discount on the cost of the first cycle of treatment, or the entire course of therapy, for all eligible patients. This type of deal is generally used in cases of uncertainty regarding the potential financial impact of a new medicine (as opposed to uncertainty regarding its effectiveness). 𝗖𝗮𝗽𝗽𝗶𝗻𝗴 sets a ceiling on expenditure on a drug per patient, beyond which the manufacturer covers all remaining costs. In addition to the patient-level MEAs managed through AIFA’s registries, Italy makes use of two population-level approaches to managed entry: 𝗣𝗿𝗼𝗱𝘂𝗰𝘁-𝘀𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗲𝘅𝗽𝗲𝗻𝗱𝗶𝘁𝘂𝗿𝗲 𝗰𝗲𝗶𝗹𝗶𝗻𝗴𝘀: AIFA negotiates a national limit for spending on a given drug in its first 12 or 24 months on the market. If this limit is exceeded, the manufacturer must refund excess costs to regional administrations. 𝗣𝗿𝗶𝗰𝗲-𝘃𝗼𝗹𝘂𝗺𝗲 𝗮𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁𝘀 provide for incremental discounts on list prices in response to growing prescription volume. The discounts may be in the form of a price reduction or a refund to the regions. In 2023, AIFA had 5 PbR schemes (down from 10 in 2022), 3 PaR agreements (same as in 2022), 5 cost-sharing deals (down from 6 in 2022) and 7 capping arrangements in operation (same as in 2022). Expenditure ceilings were in place for 16 drugs (up from 12 in 2022), while 6 products were subject to price-volume agreements (up from 4 in 2022). The accompanying figure shows that notional savings from expenditure ceilings grew dramatically, whereas refunds from price-volume agreements, cost sharing, PbR, capping and risk sharing declined. PaR agreements are not included in the savings calculations because they provide for deferred billings over time rather than refunds. #Italy #managedentry #MEA #AIFA

  • Managed entry in Italy shifts towards expenditure ceilings
Cristina Teruzzi

Executive Director Governmental Affairs & Market Access

2mo

Interesting analysis!

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