In the battle over the pricing of new drugs, manufacturers and payers have sought to come up with novel approaches to pricing that can be tolerated by both parties. One such approach has been to provide a type of money-back guarantee for expensive new drugs. In what are called outcomes-based agreements, prices are agreed to by payers with the caveat that if the drug doesn’t perform up to patients’ and physicians’ expectations, the company will refund part, if not all, of the cost of the drug.
