Summary: At The Economist’s War on Cancer 2015 event on 20 October 2015 (http://www.economist.com/events-conferences/emea/war-cancer-london), EY’s Silvia Ondategui-Parra joined the panel discussion “The patient/payer debate—balancing clinical need and affordability.” The panel explored the ongoing tension between the soaring cost of cancer drugs and governments’ ability to fund them and raised the question, do we need an entirely new pricing model? This EY infographic was developed to highlight some of the key trends driving the debate.

1. Turning the tide on
cancer drug costs
The increase in the median monthly cost
of cancer drugs in the US since 19902
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1 A rising tide of new cancer
drugs helps patients.
These contracts are complex to
build, but can provide a strong
foundation for patient access.
To hold back the tide of oncology drug costs, payers …3
... experiment with new models
US payers test indication-specific
pricing, taking advantage of
four new drug value tools.
Since 2006, NICE has issued negative
recommendations for
of the cancer
drugs reviewed.3
... limit patient access
Innovative risk-sharing agreements
are another way to turn the tide.4
of the contracts
are for cancer
drugs.4
65%The number of
risk-sharing contracts
created in the
UK and Italy since 2006
90
Sources: 1
U.S. Food & Drug Administration, Memorial Sloan Kettering Cancer Center, Decision Resources. 2
Peter Bach, Memorial Sloan Kettering Cancer Center,
Center for Health Policy and Outcomes, "Price and Value of Cancer Drug," 2015. 3
EY, National Institute for Health and Care Excellence (NICE).
4
Van de Vooren, et al., “Market-access agreements for anti-cancer drugs,” J R Soc Med (108): 166–170, 2015.
Since 1990,
new cancer drugs have
been approved in the US.
117
50Another
could reach the market by 2020.1
$41%
>700%
2 This wave of innovation
could drown payers.