AIM’s EUROPEAN FAIR PRICE CALCULATOR FOR MEDICINES
AIM's EUROPEAN FAIR PRICE CALCULATOR FOR MEDICINES
Anne Hendrickx Socialist mutual fund (Belgium)
Based on AIM's FAIR PRICING model
June 11, 2021
Why do we need fair prices ?
The pharmaceutical market today
? Huge price increase for new drugs
? Access : Europe Europe
? Not enough investment in research
? Finance-driven business model with excessive revenue fuelling expensive buyouts and high costs
What's wrong with the price setting?
Difficult negotiations and dangerous concepts
? Opposed goals and unbalanced negotiations
? Value-based pricing : a flawed mechanism
? Tricky concepts : price ? discount ?
Anchoring : cognitive bias to rely too heavily on the first piece of information offered (the "anchor") when making decisions
Source : The Anchoring Effect and How it Can Impact Your Negotiation. Program on Negotiation, Harvard Law School (2019)
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