Warranties for expensive therapies are a promising strategy for drug and device manufacturers. Warranties can provide a competitive advantage, helping manufacturers win market share while reducing barriers to the use of their products. For payers and patients, they are a form of value-based purchasing arrangement. They tie the cost of therapy to its performance against clinical and economic objectives, reducing risk and maximizing value. But implementing value-based arrangements can be challenging.
This presentation will delve into the market landscape and factors that drive adoption of VBAs; the VBA concept, including how their structure and potential benefits; advantages and disadvantages of some common VBA models; and operating challenges associated with VBAs.
The presentation will also address the future of VBAs, including emerging trends and potential innovations, the impact of new technologies such as digital health and precision medicine, and how VBAs have been implemented for specialty pharmaceuticals and medical devices.