1 / 19

Pharmacoeconomics

Pharmacoeconomics. Dr. Prabhakar Adake MD Asst. Professor Department of Pharmacology Yenepoya Medical College MANGALORE. Case scenario.

vnew
Download Presentation

Pharmacoeconomics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Pharmacoeconomics Dr. PrabhakarAdakeMD Asst. Professor Department of Pharmacology Yenepoya Medical College MANGALORE

  2. Case scenario Drug A & Drug B are equally effective and share common adverse effect profile with huge difference in their cost. Which drug you would like to select for the treatment & why?

  3. History • Economic evaluations in the field of Pharmacology started about 30 years ago(1970). • In 1978 McGhan , Rowland & Bootmanintroduced the concepts of cost-benefit & cost-effectiveness analysis. • Pharmacoeconomicswas coined in 1986 by Townsend. • 1995 :ISPOR International Society for Pharmacoeconomics and Outcomes Research • May 2006 : India- ISPOR

  4. Introduction • Health economics is the science of assessing cost and benefits of health care. • Pharmacoeconomics is a branch of health economics which compares the value of one drug or a drug therapy to another. • Description and analysis of the costs and consequences of pharmaceutical products,services and their impact on individuals, health care systems and society.

  5. PHARMACOECONOMIC METHODS Humanistic Economic • Cost minimization • Cost benefit • Cost effectiveness • Cost utility • Quality of life • Patient preferences • Patient satisfaction

  6. Cost Minimization Analysis (CMA) • Compares the costs of two or more alternatives that are therapeutically equivalent • CMA involves the determination of the least costly alternative. • Net result: cost / patient treated.

  7. Cost-Minimization Analysis • For example, if drugs A and B are antiulcer agents equivalent in efficacy and adverse drug reactions (ADRs), then the costs of these drugs could be compared using CMA. • Comparing Brands to itsGeneric products. • Comparing the cost of a multiple dose schedule to a OD schedule.

  8. Cost Benefit Analysis (CBA) • Measures costs and benefits in monetary terms. • Estimates the strengths and weaknesses of alternatives. • The costs and benefits are expressed as a ratio[benefit-to-cost (B:C) ratio].

  9. Cost Benefit Analysis (CBA) • Useful when resources are limited and only one program can be implemented • Often used when comparing the value of dissimilar programs where the outcomes are in different units • Cost benefit of having a neonatal care program vs a cardiac rehabilitation program.

  10. Cost Effectiveness Analysis (CEA) • Measures effectiveness (health benefit) in natural units (eg. years of life saved, ulcers healed) and the costs in money. • It compares therapies with similar outcomes in a particular therapeutic area. • Eg:severereflux oesophagitis,RXPPI compared with H2 blockers.

  11. Cost Effectiveness Analysis (CEA) The results of CEA are expressed as a ratio : Average cost-effectiveness ratio (ACER) • ACER= Net Cost / Net Health Benefit Incremental cost effectiveness ratio (ICER) • ICER = Difference in costs (A-B) / Difference in benefits (A-B)

  12. Cost Utility Analysis (CUA) • Subset of cost-effectiveness analysis • Determines the cost of adding one year of perfect health to a patient’s life • Health outcomes are measured in terms of quality adjusted life years (QALYs) gained. • Example: surgery vs. chemotherapy

  13. Applications Of Pharmacoeconomics Pharmacoeconomic Studies Communication to Physicians and Patients Research and Development Strategy Pricing and Reimbursement Strategy Regulatory Phase Marketing Phase Phase II Phase III

  14. PE and Drug Development Phase I ,Phase II • Cost of illness , Clinical benefits. • QOL, Resources utilization, Instrument costs. Phase III • How much money is spent in new drug development. • Patient related costs. Phase IV • Evaluation of the costs & consequences of drug therapy

  15. Limitations of Pharmacoeconomics • Choice of the drugs is given according to the marketed pressure. • Drugs are prescribed under promotional pressurizing activities of pharmaceutical firms. • For chronic diseases, bioavailability consideration can have an upper- hand over Pharmacoeconomics.

  16. Conclusions • Pharmacoeconomics can guide choices among alternative medications, treatment regimens based on a combination of costs and outcomes. • Enhance the quality of practice by strengthening evaluation process thereby improving the patient care.

  17. References Ritupararna.M.Postgraduate topics in Pharmacology.2nd ed.Paras;2015.p203-8. Kulkarni.U, Dalvi.K, MogheV.V and Deshmukh Y. A. Pharmacoeconomics: An emerging branch in health sciences for decision making .Afr J PharmPharmacol .Aug2009;3(8):362-7. JózsefBodrogiandZoltánKaló. Principles of pharmacoeconomics and their impact on strategic imperatives of pharmaceutical research and development. Br J Pharmacol 2010;159:1367–73

  18. Thank you

More Related