Designing Effective Value-Based Contracts: Timing, Evidence, and Risk Alignment

July 16, 2025

Edward Ahn

, Rob Philo

Rob Philo

, Shana Gunderson Hua PharmD

Shana Gunderson Hua PharmD

, Ed Schoonveld

Ed Schoonveld

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Industry experts react to the developer’s role in preparing for value-based contracting, acknowledging that innovative agreements can support access when evidence is still maturing.

There is no shortcut to executing a value-based contract. In this episode, experts lay out what’s required to bring these agreements to life: evidence alignment, data compatibility, and mutual incentive. Payers want results, not just risk transference—and developers must understand and speak to payer business goals.

Key discussion topics include:

Timeline and prerequisites for executing value-based contracts.
Understanding what matters to payers vs. regulators.
How to prototype contracting models for early feedback.
The importance of strong head-to-head clinical data as the foundation.