Asset Valuation

Quantifying the value of new products through independent, expert analysis

Clients rely on ICON Pricing and Market Access experts to quantify the value of new agents, whether being in-licensed or out-licensed within the global biopharma industry. In both types of engagements, we evaluate the market potential and provide guidance on improving product value through generating specific clinical, economic, and humanistic evidence.

We ask the questions asked by payers, providers, and potential strategic partners:

  • What is the unmet need (from a payer perspective) in patients for this therapy, and how does it compare to the standard of care?
  • What would be the funding mechanism in each market? What are the implications of this on product value?
  • What impact does positive health economic and outcomes data have on the value of the new product? What are implications to the product’s price potential?
  • How will the introduction of this product impact medical practice or patient quality of life?
  • What trial evidence will be most compelling for payers?   How could this impact the price potential?
  • What additional clinical, economic, or humanistic evidence would improve the value of this new product?
  • What are the implications of targeting various patient populations and subpopulations?
  • What are the implications of similar products launching into competitive markets prior to or just after the new therapy?
  • What is the long-term list to net potential in each market, considering the future landscape in each market?

Primary and secondary research focuses on:

  • Current treatments of the disease by market and population
  • Unmet needs from the perspective of payer, provider, and patient
  • Review of clinical data in the area to understand the relevance of different clinical measures
  • Analysis of the current and potential funding mechanisms for products in the therapy area
  • Costs associated with current therapy in each country
  • Review of the target product profiles (base, upside and downside) that define the new product

Based on this research, ICON P&MA conducts internal expert brainstorming workshops to develop robust hypotheses on key issues, including:

  • Ways to frame the value proposition for payers
  • Potential value based prices based on the value proposition(s) developed.   This will include consideration of:
    • the stage in the treatment pathway that the product could be used
    • what treatment it would displace or postpone at each possible stage
    • patient benefits and cost offsets relative to the treatment displaced
  • The impact of the funding mechanism on the ability to achieve that price, e.g. DRG implications, significance of dosing frequency
  • Likely assessment of evaluation bodies in each country (Tranparency Committee, GBA, NICE etc)
    • How well does the likely evidence meet the requirements of each body?
    • How robust is the evidence?
    • Expected ASMR score or benefit rating
    • What evidence would be needed to improve the rating?
    • How long will patients need to be followed up to provide convincing evidence to payers?
  • Based on these evaluations what price range could be achievable
  • Impact of the upside and downside profiles