Celgene has long held to a set of Principles for the Pricing of Innovative Medicines that guide our decisions about the pricing of the medicines we discover, develop, and distribute worldwide. These principles reflect our commitment to patient access, obligation to provide value for patients and the health system, drive for continuing innovation for the future, and the need for flexibility.
We recently enhanced these principles to provide even greater transparency around the value of our therapies and contribute to policy solutions that support access and affordability for patients. Specifically, if Celgene increases the price of any individual therapy across our portfolio, the price increase will be limited to no more than once a year and at a level no greater than the Centers for Medicare and Medicaid Services projected increase in National Health Expenditures for the year. For 2018, this rate is 5.3%. Because value is a guiding principle of our pricing decisions, there may be exceptional circumstances in which additional clinical or health economic evidence demonstrates a clear and significant increase in the value of one of our medicines where this standard would not apply.
We also agree that transparency about value and pricing is important. Patients, healthcare professionals and policymakers are asking for more information and Celgene is committed to providing it. That’s why earlier this year we introduced Celgene’s first annual Value and Innovation Framework Report which strives to define how Celgene measures value, focusing on the following four pillars of value: patients, the health system, the economy and society, and future innovation.
Another step we are taking to enhance transparency on value and pricing is to provide information on this website related to any increase in price for any product in our portfolio, including enhancements in value.
We believe these actions will provide greater certainty for all stakeholders and contribute to limiting the growth of health care spending.
Please see below to learn more about our price changes and value enhancements.