Economics
When Cancer Treatments Fail, Italy Wants Money Back
- Refunds for ineffective drugs total 200 million euros a year
- Health systems worldwide are watching the pricing strategy
This article is for subscribers only.
When trying new cancer treatments, Italy’s state-run health service is demanding a money-back guarantee. The experiment is being monitored in the U.S. and across Europe, making a country better known for its fashion and fettuccine a leader in innovative strategies to rein in drug spending.
The Italian Medicines Agency has devised deals with pharma companies that set payment based on how well a patient responds to treatment, and in some cases where the medication fails to help, the drugmaker gives a full refund. Italy is signing more such contracts as growing numbers of medications receive regulatory approval after mid-stage trials of fewer than 100 patients rather than awaiting final-stage assessments involving thousands.