Article | June 10, 2019

Advanced Therapies: Reimbursement And The Impact Of Hidden Supply Chain Costs

Source: Thermo Fisher Scientific

By Simon Ellison


While the potential for advanced therapies to provide curative treatments to patients around the world is very exciting, the pricing strategies and reimbursement models to support this innovation are quite complicated.  In this article, I’ll explore the cost vs. price paradigm, through a supply chain lens, highlighting hidden costs and their impact on reimbursement potential.

These hidden costs and their additional impact will be felt after the COGS have been established and will therefore impact the margin between COGS and the reimbursement threshold.  Thus, they need to be understood early in the development process.  Otherwise therapies risk failure, not because of their clinical impact but because they cannot be delivered to patients.