Cost And Risk Sharing Agreement

It is in this sense that there is a lot of concern right now when there are uncertainties about how efficacy can be generalized to actual medical practice, as has been demonstrated in clinical trials. Through the implementation of these contracts, both the health administration and pharmaceutical companies share uncertainty about the financial and clinical implications and benefit from faster access to new products. Depending on the nature of these agreements, pharmaceutical companies may apply either discounts on sales volume (price-volume agreements) or depreciation in whole or in part if the treatments are not as effective and safe as originally planned (performance payment agreements). . . .