The
pharmaceutical industry is often at odds about how best to use pharmacoeconomic
analyses as evidence for drug pricing, government reimbursement, formulary
inclusion and compound novelty. Pharmacoeconomic, or cost-effectiveness,
analyses are used to assess drug benefit in numerous circumstances. In
a recent United States (US) government study, for example, these analyses
demonstrated that speedier drug approval by the US Food and Drug Administration
has saved more than 300,000 “life-years”. Cost-effectiveness
analysis involves situations where trade-offs exist—typically, greater
benefit for an increased cost over an alternative therapy or strategic
option or versus usual care. In this issue of Editor’s Choice we
present a review of articles involving the subject of pharmacoeconomics
and health economic analyses that have been recently published in Drug
Discovery Today and other journals. In this era of finite budgets,
consequent healthcare rationing, shortages of medications, global aging
and burgeoning populations, numerous stakeholders in the healthcare milieu
should understand the basic principles of pharmacoeconomics or cost-effectiveness
analysis and how these may be correctly applied to facilitate drug development,
drug approval, rationing, patient segmentation, disease management and
pricing model development. Conversely, incorrect application of such analyses
may result in far-reaching and devastating consequences to global populations,
the pharmaceutical industry, health authorities and individual patients.
Enjoy the read!
Renee Arnold
President and CEO
Arnold Consultancy & Technology LLC
New York, NY
Adjunct Professor
Master of Public Health Program
Department of Community and Preventive Medicine Mount Sinai School of
Medicine New York, New York
Clinical Professor of Pharmaceutical and Social Sciences
Arnold and Marie Schwartz College of Pharmacy, Long Island University
Brooklyn, NY
The
pharmaceutical industry is often at odds about how best to use pharmacoeconomic
analyses as evidence for drug pricing, government reimbursement, formulary
inclusion and compound novelty. Pharmacoeconomic, or cost-effectiveness,
analyses are used to assess drug benefit in numerous circumstances. In
a recent United States (US) government study, for example, these analyses
demonstrated that speedier drug approval by the US Food and Drug Administration
has saved more than 300,000 “life-years”. Cost-effectiveness
analysis involves situations where trade-offs exist—typically, greater
benefit for an increased cost over an alternative therapy or strategic
option or versus usual care. In this issue of Editor’s Choice we
present a review of articles involving the subject of pharmacoeconomics
and health economic analyses that have been recently published in Drug
Discovery Today and other journals. In this era of finite budgets,
consequent healthcare rationing, shortages of medications, global aging
and burgeoning populations, numerous stakeholders in the healthcare milieu
should understand the basic principles of pharmacoeconomics or cost-effectiveness
analysis and how these may be correctly applied to facilitate drug development,
drug approval, rationing, patient segmentation, disease management and
pricing model development. Conversely, incorrect application of such analyses
may result in far-reaching and devastating consequences to global populations,
the pharmaceutical industry, health authorities and individual patients.