Price for Heart Drug Hinges on How Well It Performs

As a way to cut drug prices, payments will be based on how the drug helps improve the health of insurers' customers.

Novartis has inked a deal with two health insurers, Cigna and Aetna, that directly links how much they pay for Entresto, based on how well it performs for their customers, reported Reuters.

Approved by the FDA in July, heart drug Entresto, costs about $12.50 a day, or $4,560 a year, a price that the Institute for Clinical and Economic Review said should be 17% lower, according to the report.

Although it wasn't clear how much either insurance company would be paying, Aetna told Reuters their value-based agreement hinges on the drug "replicating results that it achieved during clinical trials. In trials, Entresto cut hospitalizations and the rate of cardiovascular death related to heart failure."

Cigna's payments will be based on how well the drug reduces the number of customers who are admitted to the hospital for heart failure, according to Reuters.

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