[Ip-health] Health Policy Watch: ‘Netflix’ Pricing Model Eases Australians’ Access To Expensive Hepatitis C Drugs

Suerie Moon suerie.moon at graduateinstitute.ch
Fri Feb 15 02:37:38 PST 2019

 Thanks to Health Policy Watch for this terrific article describing the
findings of our analysis of Australia's "all you can eat" (aka "Netflix")
approach to remuneration for HepC medicines.


‘Netflix’ Pricing Model Eases Australians’ Access To Expensive Hepatitis C
14/02/2019 by Elaine Ruth Fletcher

An innovative five-year agreement between the Australian government and
pharmaceutical companies, involving a lump sum payment of about US$ 766
million for an unlimited five-year supply of the most advanced Hepatitis C
(HCV) drugs, has reduced the per-patient costs of these cutting-edge
treatments by roughly 85%, according to a study today in the New England
Journal of Medicine <https://www.nejm.org/doi/full/10.1056/NEJMp1813728>.
The per-patient cost of the drugs under the new bulk purchase arrangement,
described in the study as a “subscription or Netflix model” is estimated to
be only about US$ 7,352. This is approximately one-seventh of what would
have been the expected price under more standard Australian government drug
purchase arrangements and one-tenth of the cost per person of treatment in
the United States in 2015 when the agreement was negotiated.
See the full Health Policy Watch article at:
Suerie Moon, MPA, PhD
Director of Research, Global Health Centre and Visiting Lecturer, Graduate
Institute of Geneva
Adjunct Lecturer, Dept. of Global Health and Population, Harvard T.H. Chan
School of Public Health
Bureau P2-712, Maison de la Paix, Chemin Eugène-Rigot 2, CP 1672, 1211
Geneva, Switzerland
Tel: +41-22-908-5845       Mobile: +41-76-823-2830           Skype ID:

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