Health insurer Cigna and Switzerland-based Novartis have agreed to set a performance-based price for Novartis' new heart drug, Entresto, according to Reuters.
In one of the few outcome-based deals between insurers and drugmakers, Cigna will pay Novartis based on how well Entresto improves the health of Cigna's consumers.
In the past, Novartis CEO Joe Jimenez publicly pushed for an increase in performance-based pricing for drugs, according to the report.
Entresto assists individuals with chronic heart failure, and costs approximately $12.50 per day — or $4,560 per year, according to the report.
However, some analysts believe its price should be lower. The Boston-based nonprofit Institute for Clinical and Economic Review has claimed the price should be 17 percent lower, according to the report.