Drug price regulation in a nutshell : value based alternatives for personalised drugs in the presence of asymmetry of information

The market for new drugs is changing: personalised drugs are deemed to increase heterogeneity in patients’ responses and, possibly, uncertainty on the outcomes. In this context, price regulation is going to play an increasingly important role. Value based prices are replacing cost based schemes, but their implementation is still controversial. In this article we argue that personalised medicine opens new scenarios as concerns the relationship between pricing, industry listing strategies and research. We suggest that more research should be devoted to study the effects of alternative pricing schemes on competition and innovation in a dynamic perspective.