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Pharmacoeconomics refers to the scientific discipline that compares the value of one pharmaceutical drug or drug therapy to another.[1][2] It is a sub-discipline of health economics. A pharmacoeconomic study evaluates the cost (expressed in monetary terms) and effects (expressed in terms of monetary value, efficacy or enhanced quality of life) of a pharmaceutical product. Pharmacoeconomic studies serve to guide optimal healthcare resource allocation, in a standardized and scientifically grounded manner.

Economic evaluation

Pharmacoeconomics centers on the economic evaluation of pharmaceuticals, and can use cost-minimization analysis, cost-benefit analysis, cost-effectiveness analysis or cost-utility analysis. Quality-adjusted life years have become the dominant outcome of interest in pharmacoeconomic evaluations, and many studies employ a cost-per-QALY analysis. Economic evaluations are carried out alongside randomized controlled trials and using methods of decision-analytic modeling. Pharmacoeconomics is a useful method of economic evaluation of various treatment options. As more expensive drugs are being developed and licensed it has become imperative especially in context of developing countries where resources are scarce to apply the principles of pharmacoeconomics for various drugs and treatment options so that maximum improvement in quality of life can be achieved in minimum cost.[3]

In policy

In 1993, Australia became the first nation to use pharmacoeconomic analysis as part of the process for deciding whether new drugs should be subsidized by the Federal Government. The Pharmaceutical Benefits Advisory Committee (PBAC) advises Federal Government ministers on whether new drugs should be placed on a list for of drugs that consumers can then purchase from pharmacies at a subsidized price. Since 1993, this approach to evaluating costs and benefits is used in Canada, Finland, New Zealand, Norway, Sweden, and the UK.

See also

References

  1. ^ Mueller, C; Shur, C.; O'Connell, J. (1997). "Prescription Drug Spending: The Impact of Age and Chronic Disease Status". American Journal of Public Health. 87 (10): 1626–29. doi:10.2105/ajph.87.10.1626. PMC 1381124. PMID 9357343.
  2. ^ Arnold, Renée J.G.; Ekins, Sean (2010). "Time for Cooperation in Health Economics among the Modelling Community". PharmacoEconomics. 28 (8): 609–613. doi:10.2165/11537580-000000000-00000. PMID 20513161. S2CID 23088517.
  3. ^ Deepak Bhosle, Asif sayyed*, Shaikh Huzaif, Alimuddin Shaikh, Vasundhara Bhople, Ayman Ali Khan.PHARMACOECONOMICS IN INDIAN CONTEXT. International journal of current pharmceutical and clinical research vol 7 issue 1 -2017 11-14 http://ijcpcr.com/download.php?id=262&f=1482469439(ijcpcr).pdf