The choice of pharmacoeconomic study design during drug development--part 2.

Abstract:

:Pharmaceutical manufacturers are faced with the challenge of when and how to conduct pharmacoeconomic (PE) evaluations to satisfy formulary decision-makers. To illustrate the usefulness of decision analysis for strategic planning in drug development, a model was created to compare the cost-benefit of three PE design options: (1) add-on to a phase III safety and efficacy randomized controlled clinical trial (RCT), (2) stand-alone phase IIIb trial and (3) a phase IV observational study. Hypothetical data on the cost of performing each type of study, the probability of a conclusive PE evaluation and the 5-year sales potential of a cost-effective product were incorporated into the model. At a discount rate of 7%, the incremental net benefit of a phase IIIb PE study was 4.2 million Canadian dollars compared to a phase III RCT and 10.5 million Canadian dollars compared to a phase IV study. The incremental net benefit of a stand-alone phase IIIb trial compared to an add-on phase III design was negligible when the formulary percentage of total sales was 25% and the discount rate 10%. Although the data used to demonstrate the model were hypothetical, decision analysis can be a useful tool for preparing a sensible development strategy or uncovering deficiencies in an existing plant.

authors

Ungar W

doi

10.1002/(SICI)1099-1557(199711/12)6:6<399::AID-PDS

keywords:

subject

Has Abstract

pub_date

1997-11-01 00:00:00

pages

399-407

issue

6

eissn

1053-8569

issn

1099-1557

journal_volume

6

pub_type

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