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Using pharmacoeconomic modelling to determine value-based pricing for new pharmaceuticals in malaysia
George Dranitsaris1, Ilse Truter, Martie S Lubbe
1Department of Pharmacy, Nelson Mandela Metropolitan University, PO Box 77000, Port Elizabeth, 6031, South Africa.
The Malaysian Journal of Medical Sciences : MJMS
|May 17, 2012
Summary
Decision analysis estimated bevacizumab pricing for metastatic colorectal cancer, finding the drug
Area of Science:
- Health Economics
- Pharmaceutical Pricing
- Clinical Decision Making
Background:
- Decision analysis (DA) is a standard method for economic evaluations of pharmaceuticals.
- The World Health Organization (WHO) suggests using multiples of a country's GDP per capita as an economic threshold.
- Bevacizumab offers a 1.4-month survival benefit for metastatic colorectal cancer (mCRC).
Purpose of the Study:
- To estimate a cost-effective price per dose for bevacizumab in Malaysia.
- To apply decision analysis using WHO-recommended economic thresholds.
- To assess the value for money of bevacizumab for mCRC treatment.
Main Methods:
- A decision model simulated progression-free and overall survival with and without bevacizumab.
- Costs included chemotherapy and side effect management from Malaysian hospitals.
- Utility estimates (quality-adjusted life years) were gathered from 24 oncology nurses.
Main Results:
- A cost-effective price for bevacizumab could not be determined due to insufficient survival benefit.
- Under WHO criteria, prices of $567 or $1258 per dose would be cost-effective if survival improved to 3 or 6 months, respectively.
- The target threshold was US$44,400 per QALY gained, 3x Malaysia's 2010 GDP per capita.
Conclusions:
- Decision modeling is a powerful tool for estimating drug prices and ensuring value for money.
- This approach aids drug manufacturers and formulary committees in value-based pricing negotiations.
- The study highlights the importance of survival benefit in determining cost-effectiveness.
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