Innovation is revolutionizing outcome-driven payer contracting in US pharma and biotech

Published on February 6, 2025

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Pharma and biotech-payer contracting in the US is no longer just about access to volume but more about holistic, measurable, and accountable patient outcomes. Are you ready to move toward enhanced outcomes-based contracting strategies? 

For decades, pharma and biotech-payer contracts were built on volume-based models, such as rebates, in exchange for formulary placement and reduced utilization management. But this traditional approach often failed to answer a fundamental question: does the therapy improve patient outcomes and reduce the total cost of care? 

Value, not volume: A shift in pharma and biotech-payer contracting strategy

Over the last decade, we have seen some movement toward outcome-based contracting (aka value-based, risk-share, or innovative contracting), but adoption has been slow.

The case for outcomes-based contract strategy

The slow uptake is…

US P&MA 2.0 Prt 1