Experts Say Proposal for Value-Based Pricing of Antimicrobials ‘Has Potential’

Former FDA commissioner Mark McClellan has put forward a proposal for value-based pricing of antimicrobials, and pricing experts tell FDAnews it has potential.

McClellan, now director of the Duke-Margolis Center for Health Policy at Duke University, proposes a publicly funded market entry reward independent of sales volume once the product is approved. The reward would pay out over a five- to six-year period.

The Priority Antimicrobial Value and Entry (PAVE) Award would incentivize drugmakers to develop high-priority antimicrobials. McClellan said the current fee-for-service model fails to account for features specific to the antimicrobial industry, because the primary driver of return on investment is sales volume, which can lead to overuse and antimicrobial resistance.