Market Access Glossary: Pharmacoeconomics

Explaining The Key Terminology 

Pharmacoeconomics or HTA (Health Technology Assessment) is a branch of science concerned with the study of the cost and effectiveness of pharmaceuticals and medical interventions. It investigates how variables such as price, efficacy, safety, and quality of life impact healthcare decision-making. The key objective of pharmacoeconomics is to optimize resource allocation to maximize treatment benefits. 

Pharmacoeconomic research assists in identifying which drugs or treatments offer the most value for money. This is especially important in the context of limited healthcare funding, where ensuring access to effective and safe medical services is crucial. 

Global Cases 

Globally, HTA is widely used to evaluate new medications. For instance, in the USA, the cost-effectiveness analysis (CEA) approach is applied to measure treatment effectiveness by comparing costs with outcomes, specifically improvements in the quality of life of patients. When assessing new cancer therapies, researchers can determine how much these medications extend patients’ lives compared to conventional treatments.  Also, included here is a report evaluating the effectiveness of charitable organizations' activities.

In Europe, specifically the UK, the National Institute for Health and Care Excellence (NICE) conducts pharmacoeconomic evaluations to assess the feasibility of including new medicines in national treatment standards. 

Russian Perspective 

HTA is a relatively recent development in Russia. The 2010 law on conducting pharmacoeconomic studies for newly introduced drugs was a major milestone for streamlining the healthcare system. Positive examples of pharmacoeconomics in action include the evaluation of antibacterial agents. Local studies demonstrated that while some novel antibiotics come with a high price tag, their increased effectiveness in treating infections can significantly reduce overall healthcare costs.

Aston Health professionals provide support and guidance for HTA studies ordered by pharmaceutical companies. In particular, we focus on the following: 

- substantiating the need for increased budget allocation toward medical intervention, drug procurement, and adoption of a new health technology; 

- assessing and updating standards of care and health technology utilization; 

- conducting prospective patient cohort monitoring, and more. 

Pharmacoeconomics is becoming an essential tool for making evidence-based decisions in healthcare both globally and locally, promoting more rational resource use and improving the quality of care.