Health insurer Cigna Corp. has announced it has negotiated a value-based contract for Praluent, a new cholesterol-lowering drug belonging to a the class of PCSK9 inhibitors. Praluent, is co-marketed by Sanofi SA and Regeneron Pharmaceuticals Inc.
The drug costs at least $14,000 a year, and Cigna negotiated an undisclosed discount off the list price.
If Cigna-insured patients who take the drugs aren’t able to reduce LDL cholesterol at least as well as what was shown in clinical trials, the manufacturers will further discount the costs of the drugs—and not just for patients who didn’t meet the cholesterol goals. If the drugs meet or exceed expectations, the original negotiated price stays, according to Cigna.
This is viewed as a significant step in a broader push to tie the cost of drugs to how well they work.