ICER Founder Steve Pearson Analyzes COVID-19 Remdesivir Pricing on HealthBiz Podcast

Cost-effectiveness model embraced by US health plans and international health technology assessment agencies shows remdesivir value depends on mortality impact

BOSTON, MASSACHUSETTS, UNITED STATES, November 12, 2020 /EINPresswire.com/ -- In the latest edition of the HealthBiz podcast, Institute for Clinical and Economic Review (ICER) founder and president, Dr. Steve Pearson explains why the fair value of the COVID-19 treatment, remdesivir may be only a few hundred dollars.

"Wall Street had estimates of $5000 to $10,000 or more," for remdesivir pricing, Pearson told HealthBiz host, David E. Williams. "We came out saying it was $2800 to $3000 if you wanted to give it credit for mortality... And if it didn't save lives, it was going to be worth about $300 or $400."

"Ring the bell and let the fights begin," Pearson said. "Let's sort this out and have a relatively rational discussion. This isn't going to be the only new drug for COVID, and it highlights a lot of the other questions we face every day" with expensive drugs for cancer and other diseases.

Pearson and Williams discussed ICER's mission and methodology, and how ICER models are being used by government health technology agencies around the world even though the US itself does not have such an agency. Health plans and health economists have embraced ICER, but some pharmaceutical companies have felt threatened by the organization's approach and have attempted to undermine it. Meanwhile, certain developers of high-cost treatments are collaborating with ICER in an attempt to justify the value of their therapies.

"ICER appeals to me because it uses evidence to help society frame and quantify the conversation around drug pricing," said Williams. "They don't set prices or determine whether a drug is covered by insurance. Rather they inform a rational approach and encourage the generation and interpretation of high-quality, real-world data."

HealthBiz with David E. Williams is a weekly podcast, available on Apple Podcasts, Spotify and elsewhere. The show presents interviews with healthcare business and policy leaders. Williams’ unique interview style fuses deep healthcare insight with engaging humor.

Recent episodes have featured Shahir Kassam-Adams (entrepreneur and Datavant executive), Ahmed Albaiti (Medullan CEO and digital health expert), Jean Mixer (Boston Children's strategy executive), and Clerio Vision co-founders Mikael Totterman and Alex Zapesochny.

HealthBiz is an outgrowth of the Health Business Blog, where Williams has written thousands of posts about healthcare business and policy and conducted more than 100 podcast interviews since 2005.

About the Health Business Group

Health Business Group is a leading strategy consulting firm advising companies, investors, and non-profits in healthcare technology, healthcare services, and pharmaceutical services. Client service professionals average more than 20 years of healthcare consulting, industry and start-up experience. Visit www.healthbusinessgroup.com for more information.

David E. Williams is president of Health Business Group and an independent director of Clerio Vision, Home Care Delivered, and Vericred. He is chair of Medullan’s advisory board. Previously he worked at Boston Consulting and LEK Consulting. He holds an MBA from Harvard Business School and a BA in Economics from Wesleyan University. Follow David on Twitter @HealthBizBlog

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ICER founder Dr. Steve Pearson and HealthBiz host David E. Williams