The TLV continues developing value-based pricing of pharmaceuticals

Today the TLV, the Swedish Dental and Pharmaceutical Benefits agency, presents a report to the Government on the pricing of pharmaceuticals. In this report the TLV finds that the current value-based pricing system needs further development and additional tools. Our objective is to extract as much health as possible for tax funds expended on medicines.

-From an international perspective pharmaceutical companies receive high prices for their medicines in Sweden. However, as margins for wholesalers and pharmacies are small the prices charged to patients and consumers are comparatively low. Now we are examining in depth how our regulatory system can be further developed. Our objective is to free up as much tax money as possible which can be used in other urgent areas within the healthcare system, says Thord Redman, Unit Head for the pharmaceutical reviews at the TLV.

The TLV's task is to rule on pricing and reimbursement of medicines and medical devices. Investigations and decisions are based on the law on pharmaceutical benefits etc. which was enacted in 2002 when the agency was founded.

During 2008 the TLV received a range of new responsibilities in connection with the reregulation of the pharmacy market. One of these is reviewing the pricing of medicines and how this can be further developed. Our objective here is to extract as much health as possible for the tax money expended on the reimbursement of medicines.

-We have been commissioned by the Government to analyse and evaluate how we can further develop our pricing model for original brand drugs. Our report covers a number of tools. Now we will go through them thoroughly, evaluate them and choose a path in order to present concrete proposals for change to the Government, says Thord Redman.

The 31st of December the TLV shall describe the changes in law and regulations which the agency believes are needed as well as the agency's collaborations with county councils and other Government agencies.