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US Outcomes-Based, Innovative Contracting (OBIC) Tracker – May 2017 Announce three new contracts in one month Becomes the #1 payer for publishing OBICs moves into 2 nd place with it’s latest contracts for: Amgen remains #1 manufacturer publishing OBICs

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Page 1: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

US Outcomes-Based, Innovative Contracting (OBIC) Tracker – May 2017

Announce three new contracts in one month

Becomes the #1 payer for publishing OBICs

moves into 2nd place with it’s latest contracts for:

Amgen remains #1 manufacturer publishing OBICs

Page 2: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

Updated: 05/31/2017

The US OBIC TrackerOutcomes Based, Innovative Contracting

Page 3: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

About Stisali & The US OBIC Tracker

The US OBIC Tracker

A ground-breaking, new, complimentary service to track and analyze the quickly evolving horizon of

US value based agreements. The tracker monitors the who, what and when of OBIC, ensuring you

keep up to date on the industry’s very latest developments. In addition, Stisali’s payer experts

provide analysis on the market drivers for OBIC and the levers adopted. The tracker will be

published routinely and inline with market developments.

Subscribe

To receive your own copy of the US OBIC Tracker please email [email protected] .

Page 4: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

Outcomes Based, Innovative Contracting Summary (OBIC) – May 2017

• Harvard Pilgrim:

o announce three contracts in one month

o become the #1 payer for undertaking & publishing OBICs

o start to increase the complexity of their contracts:

• Enbrel deal based on 6 Rx inputs to an algorithm score + adherence

• Brilinta measures secondary hospitalizations for acute coronary

• AstraZeneca move into 2nd place for manufacturers undertaking & publishing OBICs

• Amgen remain the most prolific of manufacturers publishing innovative, outcomes contracts

• U.S. predominately using OBIC to create offensive & defensive strategies in competitive markets

Page 5: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

OBIC Academy June 14th Philadelphiaclick for more

Latest OBIC announcement – Harvard Pilgrim & AstraZeneca May 30th 2017

On May 30th 2017 Harvard Pilgrim Health Care signed two innovative, outcomes-based

contracts with AstraZeneca for medicines to treat acute coronary disease and Type II

diabetes. The first is a three-year contract for Brilinta, a medication used to lower a

patient's chances of having another heart attack or dying from one.

Harvard Pilgrim will be monitoring specific criteria in patients following discharge from a

hospitalization for acute coronary syndrome. The outcome will focus on measuring the

reduction in hospitalizations for repeat acute coronary events for patients on Brilinta as

compared to patients on another oral antiplatelet therapy.

The second contract is for Bydureon, a medication used to control blood glucose levels

in Type II diabetes patients. Harvard Pilgrim will measure HbA1c levels in patients and

evaluate the ability of patients who adhere to Bydureon to get to a predetermined

HbA1c goal.

If the medicines fail to meet the agreed upon outcomes criteria in real patients, Harvard

Pilgrim will be charged a lower amount. Through these contracts, AstraZeneca and

Harvard Pilgrim agree that the health plan will be charged for medicines based on value

to the patient, and not solely on volume of medicine sold.

Source: https://www.eurekalert.org/pub_releases/2017-05/hphc-hps053017.php

Page 6: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

OBIC Academy June 14th Philadelphiaclick for more

Latest OBIC announcement – Harvard Pilgrim & Amgen May 2nd 2017

On May 2nd 2017 Harvard Pilgrim announced its second OBIC with Amgen for Repatha.

Described as a first-of-its-kind contract, it is based on the Repatha cardiovascular

outcomes data that were recently presented at the American College of

Cardiology 66th Annual Scientific Session. The contract provides Harvard Pilgrim with a

rebate for the cost of Repatha for an eligible patient who has a heart attack or stroke

while on Repatha.

Joshua J. Ofman, senior vice president of Global Value, Access and Policy at Amgen,

“…Harvard Pilgrim have worked with us to refine their utilization management criteria to

accelerate access for their high-risk patients. We look forward to partnering with other

payers to create similar outcomes-based contracts for Repatha."

This contract builds on Amgen's ongoing work with Harvard Pilgrim.

Source: https://www.amgen.com/media/news-releases/2017/05/amgen-and-harvard-pilgrim-agree-to-first-cardiovascular-outcomesbased-refund-contract-for-repatha-evolocumab/

Page 7: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

OBIC Academy June 14th Philadelphiaclick for more

0 2 4 6 8 10 12 14

1998

2009

2011

2012

2014

2015

2016

2017

ND

NUMBER

1998 2009 2011 2012 2014 2015 2016 2017 ND

Total 1 1 3 1 1 6 13 6 3

Number of OBICs Announced in USA per Annum

Page 8: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

OBIC Academy June 14th Philadelphiaclick for more

0 1 2 3 4 5 6 7

Genentech

Abbvie

Acordia

Bayer

Lilly

P&G/Sanofi

Boehringer Ingelheim (BI)

EMD Serono

Regeneron, Sanofi

Eli Lilly

Undisclosed

Gilead

Novartis

Merck

Astra Zeneca (AZ)

Amgen

NUMBER OF OBICS SINCE 1998

CO

MP

AN

Y

Rank of US Companies With Most Published OBICs

Page 9: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

OBIC Academy June 14th Philadelphiaclick for more

1

1

1

1

1

2

2

2

3

5

7

9

Humana

Catamaran/BriovaxRx

Payers & Patients

CVS Health

UoPMC, Regional Health Plan

Health Alliance

Aetna

Insurers

Express Scripts

Prime Therapeutics

Cigna

Harvard Pilgrim

0 1 2 3 4 5 6 7 8 9 10

PA

YER

NUMBER OF OBICS SINCE 1998

Rank of US Payers By Total Number of OBICs

Page 10: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

OBIC Academy June 14th Philadelphiaclick for more

AD Adherence

Cap Number of Patients Capped

CMA Continued Medication Adherence

CO Clinical Outcomes

CU Capped Usage

FS Free stock

IB Indication Based

ICM Improved Clinical Metric

ND Not Disclosed

PPP Pro-active Patient Profiling

Rxᵟ Change in Prescribing

TCC Total Cost of Care

UoPMC University of Pittsburgh Medical Center, Regional Health plan

UR Utilization Reduction

Key

0

1

2

3

4

5

6

7

8

9

UR

ICM

UR & Cap

Rxᵟ & AD

AD

CO -TBC

CO

FS

ICM & Cap

IB

ND

CO & AD

PPP

UR & AD

Primary Payer Landscape for US OBICs

Page 11: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

OBIC Academy June 14th Philadelphiaclick for more

0

2

4

6

8

10

12

14

16

18

20

Competitive market

Generic - biosimilar threat

High Cost

Novel agent

Poor outcome trial data vcompetitors

Competitive market& highbudget impact

Distribution of OBIC Types From Published Examples

Page 12: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

OBIC Academy June 14th Philadelphiaclick for more

The US OBIC Academy

Join us on June 14th 2017 in Philadelphia for a trailblazing

learning event to help you develop & deploy value based

agreements in the US.

Course leaders will reveal the payer’s perspective on innovation,

and show how to create effective contracts that provide offensive

strike strategies.

Click now to reserve your place

Page 13: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

OBIC Academy June 14th Philadelphiaclick for more

AD Adherence

Cap Number of Patients Capped

CMA Continued Medication Adherence

CO Clinical Outcomes

CU Capped Usage

FS Free stock

IB Indication Based

ICM Improved Clinical Metric

ND Not Disclosed

PPP Pro-active Patient Profiling

Rxᵟ Change in Prescribing

TCC Total Cost of Care

UoPMC University of Pittsburgh Medical Center, Regional Health plan

UR Utilization Reduction

Key

Page 14: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

Data – Read Me

Base data collected using desk research on all publicly available information relating to outcomes based, innovative contracts in the USA from 1998 to May 25th 2017.

OBIC is classified as either:

• Outcome payment – reimbursement tied to a clinical &/or process outcome at either individual patient or population level i.e. reduction in a clinical indicator such as HbA1C

and/or

• Conditional payment – payment is contingent on specific short-term health outcome or evidence target i.e. Persistence

and/or

• Innovative contracts i.e. indication based pricing, free stock etc.

Data only relates to bio and pharmaceutical products, not devices and diagnostics

Data does not include traditional, straight discount & rebate deals based on volume &/or usage

Page 15: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

Analysis – Read Me

Date – relates to the first evidence of public notification of the OBIC, not contract commencement

Not Disclosed, Undisclosed & ND – insufficient information provided to complete the field

Payer – the name of the payer organization which initiated the contract

OBIC Type – a classification nomenclature applied by Stisali to represent the mechanism used in the contract

Primary Payer Landscape – a classification nomenclature applied by Stisali’s payer team to represent the predominant payer driver for that product &/or drug class at that time of the contract announcement

For any questions relating to the data and/or analysis please contact [email protected]

Page 16: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

About Stisali & The US OBIC Tracker

Stisali

Stisali are managed market experts, exclusively specializing in risk share and outcomes based, innovative contracting

(OBIC). The company uses insight and experience gained from mature managed markets to create highly effective

value based agreements for US manufacturers. www.stisali.com

Subscribe

To receive your own copy of the US OBIC Tracker please email [email protected] .

Page 17: US Outcomes-Based, Innovative Contracting (OBIC) Tracker ...€¦ · US Outcomes-Based, Innovative Contracting (OBIC) Tracker –May 2017 Announce three new contracts in one month

[email protected]

Nick Merryfield

[email protected]

Omar Ali

Contact for more information

05/25/17