Are We Pricing Drugs Right? A Conversation with Peter Neumann on How Innovation is Valued Globally

In this episode of Perspectives by the Leerink Center for Pharmacoeconomics, host Mel Whittington sits down with renowned health economist Dr. Peter Neumann following the annual meeting of the Center for the Evaluation of Value and Risk in Health (CEVR) at Tufts Medical Center. Drawing from conversations that took place at the meeting, Mel and Peter explore some of the questions that are shaping how innovation is valued globally. The discussion covers: Whether cost-effectiveness analysis captures all the factors that are considered when pricing a drug   How payers use outcomes assessments to shape, and sometimes restrict, coverage decisions What Medicare drug price negotiations and MFN proposals reveal about “value-based pricing” The distinction between price and value and whether current frameworks adequately reward innovation The growing debate around centralized health technology assessment in the U.S. Why the field may be moving toward narrower definitions of value over time This episode offers a window into the economic debates influencing how medicines are evaluated, reimbursed, and ultimately brought to patients.  CEVR webpage : https://cevr.tuftsmedicalcenter.org/ US vs. MFN CEA thresholds paper: https://academic.oup.com/healthaffairsscholar/article/4/4/qxag081/8586328 Cost-effective price vs. Medicare negotiated price paper:  https://pubmed.ncbi.nlm.nih.gov/40939703/