Cigna and Aetna sign pay-for-performance deal with Novartis for Entresto drug

The pay-for-performance agreements are expected to set pricing on certain drugs based on how they work for certain patients.

In July 2015, the US Food and Drug Administration approved Entresto by for the treatment of chronic heart failure with reduced ejection fraction.

Cigna said that the agreement ties the financial terms to how well the drug improves the health of the company’s customers.

Reuters quoted Aetna saying that the company signed a deal with Novartis that is based on the drug replicating results achieved at the time of clinical trials.

Cigna Pharmacy Management integrated clinical and specialty drug solutions senior vice president Christopher Bradbury said: "Competitive drug prices are important, but equally so is ensuring that customers’ medications are actually working as, or better than, expected.

"Outcomes-based contracts require that prescription medicines perform in the real world at least as well as they did during clinical trials and are a valuable tool for improving health and managing costs.

"When pharmaceutical companies stand behind the performance of their drugs through these kinds of contracts, we can deliver the most value to Cigna’s customers and clients for the money they are spending."

The agreement applies to Cigna’s commercial business.

Image: Novartis headquarters in Basel. Photo: courtesy of –Andrew- from Flickr