BioCentury
ARTICLE | Politics & Policy

Sweden considering international reference pricing

November 9, 2012 1:41 AM UTC

Sweden may implement international reference pricing (IRP) after a branded drug has been on the market for five years, according to Swedish pharmaceutical trade association LIF. A special investigator appointed by the Swedish government to evaluate pricing and market conditions for drugs in Sweden proposed introducing a ceiling price for drugs after five years that is updated annually based on IRP, along with other proposed changes. According to a summary obtained by BioCentury, the proposals could save about SEK2.4 billion ($357.6 million) annually.

Since 2002, Sweden has had a value-based pricing (VBP) system, under which a drug manufacturer requests reimbursement from the Swedish pricing and reimbursement authority, the Dental and Pharmaceutical Benefits Agency (TLV). The price of the branded drug is based on cost effectiveness and a number of other factors, including patients' maximum willingness to pay for a quality-adjusted life year (QALY). If TLV agrees with the company's proposed price, the price is set and is unchanged while the drug is under patent protection unless TLV decides to review its decision. According to the summary, Swedish prices for new drugs are comparable to other European countries but prices for older drugs are "higher in Sweden than in comparable countries." Under the proposals, Sweden would continue to use a VBP system for the first five years a drug is on the market. ...