Valuing biotech drugs - improved portfolio valuations by incorporating outcomes based access analysis

With the ever increasing access hurdles introduced by health technology assessment agencies, product valuations at early development stages depend increasingly on their inherent pricing assumptions in relation to outcomes based market assess (in other words the price at which a product is deemed cost-effective and worth reimbursing in the eyes of payors). In a recent article we examined the increasing role of health economics in make or break decisions for lisencing in the biotech industry. We belive that pharmacoeconomic considerations will have to play a greater role in complementing traditional valuation methods for new products in order to capture the full commercialization risk spectrum.