Biotech Values

[DewDiligence]

In an “indication-specific pricing” model, the per-pill cost of Tarceva would be lower for pancreatic-cancer patients than for lung-cancer patients, given the reduced efficacy, [ESRX’s] Dr. Miller said.

Where different cancer indications use the same dosage, such an indication-based pricing scheme may be impractical insofar as it increases the incentives for fraudulent insurance claims.