This document discusses the topic of pharmacoeconomics. It begins with introducing health economics and defining pharmacoeconomics as the analysis of the costs and benefits of drug therapy. It then outlines different types of pharmacoeconomic evaluations including partial evaluations like cost-of-illness and cost-consequence analyses, as well as full evaluations like cost-minimization, cost-benefit, cost-effectiveness, and cost-utility analyses. Specific examples are provided for some of these evaluation types. The document also discusses the importance of pharmacoeconomics and references organizations like ISPOR and NCPE.

1. PHARMACOECONOMICS
MSC CLINICAL RESEARCH (SEM-I) 2020-2022
PRESENTED BY:
- DEVARSHI NAYAK(ROLL NO -9)
- AVANI PANSURIA(ROLL NO-10)
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3. OVERVIEW OF PRESENTATION
INTRODUCTION
COST
CONSEQUENCES
PERSPECTIVE
PHARMACOECONOMIC EVALUATION
WHY DO WE NEED PHARMACOECONOMICS?
ICPOR & NCPE
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4. INTRODUCTION
• HEALTH ECONOMICS:
It is the science of assessing cost and benefits of health care.
• PHARMACOECONOMICS:
It is the analysis of the cost of drug therapy and its benefits to
the health care system and society.
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7. CONSEQUENCES
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8. PERSPECTIVE
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9. PHARMACOECONOMIC
EVALUATION
Economic evaluations
 Partial economic evaluations
- Cost consequence analysis
(CCA) or Cost outcome analysis
(COA)
- Cost of illness (COI) evaluation
 Full economic evaluations
- Cost Minimization Analysis
(CMA)
- Cost Benefit Analysis (CBA)
- Cost Effectiveness Analysis
(CEA)
- Cost Utility Analysis (CUA)
 Humanistic evaluation
 Health Regulated Quality of
Life (HRQOL)
 Patient preferences
 Patient satisfaction
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10. PARTIAL ECONOMIC EVALUATION
1. COST OF ILLNESS EVALUATION (COI)
• It identifies and estimates the overall cost of particular disease for
a defined population.
• Cost of illness analysis is a way of measuring medical and other
costs resulting from a specific disease or condition.
• Also known as burden of illness.
2. COST CONSEQUENCE ANALYSIS
• Also known as cost outcome analysis.
• It describes the cost and consequences of an alternative.
• Does not provide a comparison with other treatment option.
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11. COST MINIMIZATION ANALYSIS
• The most basic technique.
• It involves the determination of the least costly alternative.
• For comparing an generic drug to its brand name equivalent.
• Comparing the cost of multiple dose schedule to an once daily
schedule that is equally safe and effective.
• Comparing the drugs that are not of same chemical entity but
belongs to same therapeutic category.
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12. COST BENEFIT ANALYSIS
• Cost-benefit analysis is a way to compare the costs and benefits
of an intervention, where both are expressed in monetary units.
• The cost and benefits are expressed as a ratio,
Benefit-to-Cost ratio (B:C ratio)
• Many CBAs measure and quantify direct cost and direct benefits
only due to difficulty in measuring indirect and intangible
benefits.
• This approach is not widely used in health economics.
• CBA provides the net benefits (benefits minus costs) of an
intervention.
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14. COST EFFECTIVENESS ANALYSIS
• The most commonly employed method.
• Cost-effectiveness analysis is a way to examine both the costs
and health outcomes of one or more interventions.
• It compares an intervention to another intervention by
estimating how much it costs to gain a unit of a health outcome.
• Like a life year gained , death prevented , lowering of blood
pressure etc.
• Results of CEA are expressed as a ratio;
- Average cost effectiveness ratio (ACER) :
Net cost : Net health benefit
- Incremental cost effectiveness ratio (ICER) :
Difference in costs : Difference in benefits
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15. CHILDHOOD VACCINATION
PROGRAMME
Costs of implementation $ 7.5 billion
Cost averted
(medical costs & productivity losses) - $ 76.4 billion
Net costs
(negative value means cost savings) - $ 68.9 billion
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16. COST UTILITY ANALYSIS
• Compares treatment alternative that integrates patient preferences
and Health Regulated Quality Of Life (HRQOL).
• HRQOL measure is utility , having range between 1.0 (perfect
health) and 0.0 (death).
• Quality Adjusted Life Years (QALYs):
Time in a health state * appropriate utility score
• Cost: In $
• Therapeutic outcome : In patient weighted utilities (E.g. QALY)
• Results are expressed in ratio: Cost utility ratio (C:U ratio)
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18. WHY DO WE NEED
PHARMACOECONOMICS?
• Fixing the price of a new drug and re-fixing the price of an
existing drug.
• Finalizing a drug formulary.
• Creating data for promotional materials of medicines.
• Including a drug in the medical insurance reimbursement
schemes.
• Introduction of new schemes and programs in hospital
pharmacy and clinical pharmacy.
• Drug development and clinical trials.
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19. ISPOR & NCPE
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20. REFERENCES
 https://www.cdc.gov/
 https://www.google.com/url?sa=D&q=https://link.springer.com/
chapter/10.1007/978-981-32-9779-
1_19&ust=1615653600000000&usg=AOvVaw0P4wEJUUkaejh
z5Jc5ZLSC&hl=en-GB&source=gmail
 Textbook of clinical pharmacy practice, pharmacoeconomics:
Theory, Research and Practice, by Duska Franic, Anandi V Law
and Dev S Pathak
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