An EntityRisk White Paper

Written by: Darius Lakdawalla PhD, Devin Incerti, and Neal Masia PhD

Meeting the Analytic Challenges of Value-Based Agreements in Life Sciences

March 2022

Uncertainty about the real-world effectiveness and value of a new product or a new indication can hinder market access, especially for products with no real-world data available or relatively small clinical trials  Value-based agreements (VBA) can help reassure payers in these circumstances and ensure that manufacturers earn an appropriate return in the event the product works as they expect it to [1].

Implementing VBAs requires that manufacturers answer a series of somewhat complex questions:

  • What is the value of a treatment with uncertain effectiveness?
  • How well do alternative VBA designs capture the value to the manufacturer?
  • How will the VBA influence cash flow and revenues for the manufacturer?
  • How will the VBA be adjudicated in practice?

EntityRisk has brought together a team of recognized experts uniquely positioned to answer these questions in any life sciences context.