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A drug that adds a year of life in one cancer and six weeks in another sells at the same price for both; indication-specific prices would pay for the benefit actually delivered.
Most oncology drugs carry several indications, and the benefit differs from one indication to the next. Indication-based pricing sets a price per indication, either through separate national drug codes or through rebates keyed to the diagnosis on the claim. Italy and Germany use indication-level agreements; in the US, pharmacy benefit managers have run pilots. The barrier is claims data that reliably carries the indication.
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