Principles of pharmacoeconomics and their impact on strategic imperatives of pharmaceutical research and development

József Bodrogi, Z. Kaló

Research output: Contribution to journalArticle

18 Citations (Scopus)

Abstract

The importance of evidence-based health policy is widely acknowledged among health care professionals, patients and politicians. Health care resources available for medical procedures, including pharmaceuticals, are limited all over the world. Economic evaluations help to alleviate the burden of scarce resources by improving the allocative efficiency of health care financing. Reimbursement of new medicines is subject to their cost-effectiveness and affordability in more and more countries. There are three major approaches to calculate the cost-effectiveness of new pharmaceuticals. Economic analyses alongside pivotal clinical trials are often inconclusive due to the suboptimal collection of economic data and protocol-driven costs. The major limitation of observational naturalistic economic evaluations is the selection bias and that they can be conducted only after registration and reimbursement. Economic modelling is routinely used to predict the cost-effectiveness of new pharmaceuticals for reimbursement purposes. Accuracy of cost-effectiveness estimates depends on the quality of input variables; validity of surrogate end points; and appropriateness of modelling assumptions, including model structure, time horizon and sophistication of the model to differentiate clinically and economically meaningful outcomes. These economic evaluation methods are not mutually exclusive; in practice, economic analyses often combine data collection alongside clinical trials or observational studies with modelling. The need for pharmacoeconomic evidence has fundamentally changed the strategic imperatives of research and development (R&D). Therefore, professionals in pharmaceutical R&D have to be familiar with the principles of pharmacoeconomics, including the selection of health policy-relevant comparators, analytical techniques, measurement of health gain by quality-adjusted life-years and strategic pricing of pharmaceuticals.

Original languageEnglish
Pages (from-to)1367-1373
Number of pages7
JournalBritish Journal of Pharmacology
Volume159
Issue number7
DOIs
Publication statusPublished - Apr 2010

Fingerprint

Pharmaceutical Economics
Cost-Benefit Analysis
Research
Economics
Pharmaceutical Preparations
Health Policy
Delivery of Health Care
Clinical Trials
Healthcare Financing
Costs and Cost Analysis
Quality-Adjusted Life Years
Resource Allocation
Selection Bias
Health Resources
Pharmaceutical Research
Observational Studies
Biomarkers
Health

Keywords

  • Cost-effectiveness
  • Economic evaluation alongside clinical trials
  • Economic modelling
  • Full economic evaluation
  • Naturalistic health economic study
  • Pharmacoeconomics
  • Reimbursement
  • Strategic pricing

ASJC Scopus subject areas

  • Pharmacology

Cite this

Principles of pharmacoeconomics and their impact on strategic imperatives of pharmaceutical research and development. / Bodrogi, József; Kaló, Z.

In: British Journal of Pharmacology, Vol. 159, No. 7, 04.2010, p. 1367-1373.

Research output: Contribution to journalArticle

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