Correspondence: Roger Turner, PBB UK Ltd. 87 Cambridge St. London SW1V 4PY, UK Tel: +44 (0) 207 821 5299; Fax: +44 (0) 845 280 3406; e-mail: roger.turner@pbb-uk.com

¹is a partner of PBB UK, a leading variable compensation consultancy and software practice. He has led many assignments across Europe in the pharmaceutical industry and is a graduate of Oxford University and INSEAD business school.

²is a partner of PBB France and over the past eight years has designed and implemented highly motivational bonus schemes in pharmaceutical field sales forces across Europe. Prior to joining PBB, he was a Director of Sanofi-Aventis and has held several senior finance positions.

³is the founding partner of PBB France and has worked with the pharmaceutical industry for over 15 years. He has led the mathematical development of many of PBB's processes including the Commitment Process™ that is now used extensively within Europe.

Received 17 May 2007; Revised 17 May 2007.

Abstract

There are several problems associated with the ex ante pricing of new drugs and a key objection is the delay in launching drugs in order to permit cost-effectiveness analysis and set price. The Commitment Process™ provides a transparent and workable methodology for setting price upfront which aligns the interests of both company and assessment authority and confers considerable benefits to both parties. A critical benefit of this process is the removal of any delays in launching new drugs following MHRA authorisation.