Our Approach to Pricing, Access and Affordability
WHY WE DO WHAT WE DO
Amgen’s mission is to serve patients. Every day, we work to discover, develop and deliver breakthrough medicines that make a difference to patients’ lives and address some of society’s most serious diseases, including cancer, cardiovascular disease, inflammation and osteoporosis.
Healthcare systems are facing unprecedented challenges, such as increasing prevalence of chronic diseases, health disparities and constrained budgets, while access to and cost of medication is a concern for many patients.
At Amgen, we believe that innovative medicines are the best hope for patients in the fight against serious disease. To realize the full value of our medicines and for the patients who need them most, Amgen is delivering integrated patient access and health system solutions.
DELIVERING PATIENT ACCESS AND HEALTH SYSTEM SOLUTIONS
We’re helping to evolve the health ecosystem by actively engaging with and leveraging the strengths of governments, manufacturers, academics, payers, digital health companies, and practitioners. Together, we are working to co-create solutions that transform health systems by not only treating disease after it strikes, but also helping to predict and prevent disease before it occurs. We are also advocating for policies that would help make medicines more affordable and accessible for patients.
Amgen is delivering integrated patient access and health system solutions across three pillars and eight “Amgen Solutions.” Click on each pillar below to learn more about what we’re doing.
Explore Amgen's access and system solutions further:
- Access Approaches, Collaborations, and Lower Cost Treatment Options
- Transformative Treatments, Approaches, and Technology
- Shaping the Future of Healthcare
THE BURDEN OF DISEASE DICTATES INNOVATION
The growing burden of disease not only takes an enormous human toll, but also creates a huge financial burden on society. Innovation is necessary now, more than ever, to prevent taking a step backward in the progress of human health. For many diseases, better, more effective therapies are needed—key examples are cancer, cardiovascular disease, inflammation and osteoporosis.
COVID-19 has highlighted the importance of the prevention and treatment of chronic conditions—such as heart disease and obesity—in reducing the harm attributed to widespread disease outbreaks. The pandemic has also demonstrated how disruptions in care can impede delivery of timely medical attention for urgent and, in many cases, preventable conditions. Read more here about how the pandemic has underscored the need to continue investing in innovation that helps us predict and prevent chronic diseases.
For more information on how Amgen is supporting patients and communities during the pandemic, visit our COVID-19 Information Center.
RISK OF NOT INNOVATING
About 659,000 people in the United States die from heart disease each year—that's 1 in every 4 deaths.1 The total costs of cardiovascular disease in the United States are expected to reach $1.1 trillion by 2035.2 A study published in 2019 looked at where we might go from here and presents a very stark choice.
As this chart shows, if innovation stagnates, the cardiovascular (CV) mortality rate in the U.S. is predicted to significantly increase. However, if innovations are widely adopted and new innovations come along behind them, the CV mortality rate could be significantly reduced, building on the remarkable gains of the past 50 years. It is important to remember that these lines on this chart represent people's lives—that is what’s at stake here.
There is a tremendous opportunity—and an urgent need—to bend the curve of cardiovascular disease, cancer, osteoporosis and the many other serious diseases that affect tens of millions of people around the world. Our aspiration is to be a leader advancing innovative medicines that bend the curve on the rising burden of disease to benefit patients, society and other stakeholders.
- Virani SS, Alonso A, Aparicio HJ, Benjamin EJ, Bittencourt MS, Callaway CW, et al. Heart disease and stroke statistics—2021 update: a report from the American Heart Associationexternal icon. Circulation. 2021;143:e254–e743.
- RTI International. Projections of Cardiovascular Disease Prevalence and Costs: 2015–2035: Technical Report [report prepared for the American Heart Association]. Research Triangle Park, NC: RTI International; November 2016. RTI project number 021480.003.001.001.
IN THE NEWS
"We've accelerated growth by securing broad access and reimbursement at an affordable out-of-pocket cost for commercial and Medicare patients. We continue to work with payers and pharmacy benefit managers to make it easier for health care professionals to complete prior authorizations and ensure that a prescription written is a prescription filled," shared Executive Vice President of Global Commercial Operations, Murdo Gordon, during our 2022 Virtual Business Review. Read more here.
If scientists can deliver vaccines for COVID-19 in under a year, why does it normally take a decade or more to develop other types of medicines? Long timelines are not an inherent feature of drug development but a problem that can be solved through innovation. Read how Amgen is responding to this challenge.
Read more from our head of U.S. Value & Access, Jen Norton, on findings from Amgen's latest Biosimilar Trends Report, which demonstrates that competition supported by biosimilars has the potential to provide cost savings for public and commercial payers.
While the current healthcare model is focused on treating and curing serious illnesses like cancer, heart disease and osteoporosis, Amgen is advocating for a different approach: one aimed at predicting who is at risk and helping to prevent the impact of serious diseases from occurring. Read why the company champions this approach from Amgen's chief medical officer, Dr. Darryl Sleep.
PRICING DECISIONS IMPACTING OUR PRODUCT PORTFOLIO
- Net Price = the actual amount that the manufacturer recoups from selling its product, once fees, discounts and rebates to various stakeholders—including wholesalers, payers, Pharmacy Benefit Managers (PBMs)—are taken out.
- List Price = the price a manufacturer establishes for a product. In most basic terms, it is the original selling price before discounts and rebates are applied.
Since 2018, the average net price for Amgen medicines has declined and, for 2022, we expect a trend towards a mid-to high single digit decline in net price across our global portfolio of products as compared to 2021. The average list price increase across Amgen’s entire U.S. portfolio of products is in line with inflation and key pricing indices.
Learn more about Amgen’s Approach to Responsible Pricing.
OVERSIGHT OF OUR APPROACH TO PRICING, ACCESS AND AFFORDABILITY OF MEDICINES
The Corporate Responsibility and Compliance Committee of our Board of Directors receives regular updates regarding our approach to pricing, access and affordability of our medicines, as well as on the activities of our Amgen Safety Net Foundation and other philanthropic activities that provide access to our medicines across the globe.
OUR COMPLIANCE WITH DRUG PRICING LAWS
One of our core Company values is “Be Ethical,” and part of being ethical is being compliant. At Amgen, compliance is adhering to the laws and regulations that govern what we do, including those that govern healthcare pricing and reimbursement.
This material contains forward-looking statements that are based on the current expectations and beliefs of Amgen. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including any statements on the outcome, benefits and synergies of collaborations, or potential collaborations, with any other company, including BeiGene, Ltd. or any collaboration or potential collaboration in pursuit of therapeutic antibodies against COVID-19 (including statements regarding such collaboration's, or our own, ability to discover and develop fully-human neutralizing antibodies targeting SARS-CoV-2 or antibodies against targets other than the SARS-CoV-2 receptor binding domain, and/or to produce any such antibodies to potentially prevent or treat COVID-19), or the Otezla® (apremilast) acquisition (including anticipated Otezla sales growth and the timing of non-GAAP EPS accretion), as well as estimates of revenues, operating margins, capital expenditures, cash, other financial metrics, expected legal, arbitration, political, regulatory or clinical results or practices, customer and prescriber patterns or practices, reimbursement activities and outcomes, effects of pandemics or other widespread health problems such as the ongoing COVID-19 pandemic on our business, outcomes, progress, or effects relating to studies of Otezla as a potential treatment for COVID-19, and other such estimates and results. Forward-looking statements involve significant risks and uncertainties, including those discussed below and more fully described in the Securities and Exchange Commission reports filed by Amgen, including our most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K. Unless otherwise noted, Amgen is providing this information as of the date of this material and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
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