Rapid economic analysis to support an internal business decision
Cost effectiveness and budget impact modelling to assess a new investment opportunity from a health economic and payer perspective
Our client had the opportunity to invest in a new product: a novel system of drug delivery to the retina. This treatment offered the advantage of avoiding intrusive treatments involving ocular injections or implants. Our client wished to assess potential pricing for the product and gain insight into the budget impact on a national level for the EU5. Results were needed to inform product investment decisions, however due to timelines all work had to be completed within a tight schedule of less than a month.
We developed a combined cost effectiveness and budget impact model to assess the likely price corridor for the technology as well as its overall budget impact at a national level. The model was based on thorough, rapid desktop research which encompassed current treatment patterns in the therapy area, clinical trial results, and the relevant economic literature. Population and costing data was used for each of the EU5 members in order to produce results specific to individual countries. Since the technology was in an early stage of clinical research, the model permitted the user to explore a wide variety of scenarios. The cost effectiveness model allowed users to compare the technology to a wide range of competitors, assuming differing levels of treatment effectiveness and costs. The budget impact section allowed the technology to be positioned differently in the market (first or second line) to assess potential revenue.
Results demonstrated that the potential reimbursement and positioning within the market for the technology was highly dependent on clinical efficacy results. Findings from the model were combined with rapid payer interviews in order to provide multi-perspective insight into the situation. Feedback from payers confirmed the model results: the technology would only capture a large share of the market if superior efficacy was demonstrated.
Value to the client
Producing a rapid yet thorough economic analysis of the technology allowed the client to make an informed judgement, from a health economic and payer perspective, within the short timeframe. Based on our work, the client made the decision not to acquire the technology due to uncertainty regarding the clinical effectiveness and therefore potential market positioning of the product.