Equinox Group has recently analyzed six more observations that are candidates for inclusion in our oncology normative pricing model. The graphic below shows the new observations (green dots) as a holdout set compared to the original observations (blue dots). The benefit vs. cost (price) ratios for the new set closely match those in the original set and should provide an even more robust basis for predicting pricing potential for new agents once incorporated into the next generation of the model in early 2020.
Pale dots: original observation set
Green dots: new candidate observations
Background: Equinox Group’s oncology normative pricing model allows drug development teams to estimate the pricing potential of their developmental programs as a function of their anticipated clinical attributes. The model is based on analysis of clinical improvement vs. cost (price) for a set of oncology agents that have achieved favorable market access in recent years. That analysis shows that there is a clear and quantifiable relationship between clinical benefit and cost among successful drugs. Development teams can easily explore how alternative clinical outcomes for an agent will affect its pricing potential in each of its target indications.