Product Listing Agreements

Over the past five years, product listing agreements (also known as Industry-Payor Agreements) have been increasingly accepted as a way for manufacturers to gain public reimbursement for their pharmaceutical products and medical devices, increasing their availability for patients. Conversely, these agreements also enjoy an increasing acceptance amongst most public drug plans across the country, since they can help governments achieve cost savings, budget certainty, evidence development, and other benefits. Essentially, product listing agreements facilitate a symbiotic exchange between manufacturers and governments, so that quality pharmaceutical products and medical devices can be more widely accessible and more affordable than they otherwise would be.

While the prevalence of product listing agreements will continue, they pose challenges in terms of formation and execution. Product listing agreements can consume a great deal of time from both sides, and this can prove costly to manufacturers and test the patience of needy patients. Furthermore, delays in this process can, in effect, shorten the valuable amount of time for which a manufacturer hopes that its product will enjoy patent protection.

More than ever, government drug plan managers are finding themselves stretched from a manpower resourcing perspective, and are therefore forced to prioritize the amount of time they can spend on any particular product listing agreement negotiation. While this prioritization will generally be based on important factors such as perceived clinical need and cost-effectiveness, it can still result in the de-prioritization of viable products, especially when value propositions for such are deemed less compelling or to require a greater degree of drug plan staff time and resources.

Pathway Advisory Services has extensive and multi-provincial experience with many different types of product listing agreements, and advises not only manufacturers but also other consultancies and provincial governments on how to creatively craft symbiotic product listing agreement structures. We help our clients to develop and scrutinize their value propositions (including their economic modeling), with a keen focus on making their proposition as simple and "turnkey" as possible. We recognize that ease of analyses and implementation will greatly reduce the chance of a drug submission file becoming de-prioritized, thus reducing the chance of any costly delays that would prevent timely patient access. Of equal importance, we help our clients to determine what type of value proposition would be more attractive to their drug plan manager audience through a detailed environmental scan, so that clients can price their product at an appropriate level that works well for both the public drug plan and for their shareholders.