1. Geeta P Darekar
M. Pharm (Ph. D)
Assistant Professor,
Srinath College Of Pharmacy, Aurangabad
Pharmacoeconomics
2. INTRODUCTION
• Pharmacoeconomics is a new word;
but economic interest in drug and
other treatment of health problems is
much older.
• Pharmacoeconomics can be defined as
the branch of economics that uses
cost-benefit, cost-effectiveness, cost-
minimization, cost of illness and
cost- utility analyses to compare
pharmaceutical products and
3. INTRODUCTION
• Costs involved in Pharmaco-economic
evaluation can be divided into financial cost
(mandatory cost), economic cost
(resources for which no mandatory
payment is made) and opportunity cost
(benefit foregone when selecting one
therapy alternative over the next bet
alternative).
• Several costs can be measured while
weighing up the cost of invention.
• The cost may be direct or indirect.
• Direct cost involves staff cost, capital cost
and drug acquisition cost.
4. INTRODUCTION
The cost can be measured in following ways
• Cost/Unit (cost/tablet cost/capsule)
• Cost/Treatment
• Cost/Person/Year
• Cost/Case prevented
• Cost/Life saved
• Cost/DALY (disability-adjusted-life-years)
• Fundamental component of a pharmaco-economic study
is outcomes.
• What is the effect of alternative drug therapies on
disease progression, survival, quality of life?
• In The second assessing outcomes it is important to
consider both positive and negative outcomes
• Positive outcome is a measure of drug's efficacy.
• Negative outcomes include side effects, Treatment
failure and the development of drug resistance.
5. Methods Of Pharmaco-economic
Evaluation
1. Cost-minimization analysis (CMA):
It involves measuring only costs, usually only
to health services, eg prescribing a generic
preparation instead of a brand leader
2. Cost-effectiveness analysis (CEA):
It refers to the whole of economic evaluation but
specifically a particular type of evaluation in
which the health benefit can be defined and
measured in natural units; e.g. years of life
saved, ulcers healed, etc.
6. Methods Of Pharmaco-economic
Evaluation
3. Cost-utility analysis (CUA):
It is similar to cost effectiveness but the outcome
is a unit of utility,
e.g. Quality Adjusted Life Years (QALY):
e g QALY of coronary artery bypass grafting
versus cost per QALY for Erythropoietin in renal
disease.
4. Cost-benefit analysis (CBA):
In this case, the benefit is measured as the
associated economic benefit of an intervention;
7. Importance Of Pharmacoeconomics
• There are four main stake-holders, who are
involved in Pharmacoeconomics.
1. To Pharmaceutical Manufacturers:
2. To Healthcare Practitioners:
3. To Pharmacists:
4. To Patients:
