It is a sub-discipline of health economics , Pharmacoeconomics refers to the scientific discipline that compares the value of one pharmaceutical drug or drug therapy to another. Pharmacoeconomics deals with identifying, measuring, and comparing the costs and consequences of pharmaceutical products and services.

1. Pharmacoeconomics
B.Pharm VIII Sem
Dr. Manoj Goyal

2. • Pharmacoeconomics refers to the scientific
discipline that compares the value of one
pharmaceutical drug or drug therapy to
another. It is a sub-discipline of health
economics.
• Pharmacoeconomics deals with
identifying, measuring, and comparing the
costs and consequences of pharmaceutical
products and services.

3. • It helps in forming an economic relationship
which combines the drug research, its
production and distribution, storage, pricing,
and further use by the people.
• Some of the concepts involved in
pharmacoeconomic analysis include: Cost
minimization, Cost effectiveness, Cost
benefit, and cost utility analysis.

4. • Cost-effectiveness analysis (CEA) is
a form of economic analysis that
compares the relative costs and
outcomes (effects) of different
courses of action.

5. • Pharmacoeconomics can be of
tremendous help in decision-making
when evaluating the affordability of and
access to the right medication to the
right patient at the right time when
comparing two drugs in the same
therapeutic class of drugs.

6. • Proper application of pharmacoeconomics
will allow the pharmacy practitioners and
administrators to make better and more
informed decisions regarding products and
services they provide.
• Pharmacoeconomics analysis is important
for inclusion in formularies. It assesses
therapeutic advantages and disadvantages
of the drug and cost-effectiveness of the
drug relative to accepted therapy.