Health Economics Consulting: Strategy and Early Models

A promising asset in development is just that—an exciting innovation with potential—until evidence of value has been generated. Creating a comprehensive health economic strategy to develop that evidence can help you minimize development time and costs and avoid duplication of efforts. The cornerstone of that plan is often an early cost-effectiveness model (CEM). These models provide an objective evidence-based framework to identify value drivers and associated evidence gaps and can inform an integrated evidence generation plan to gather necessary data to optimize future research investments. 

The Advantages of an Early CRM

Graph of example threshold analysis demonstrating missed price opportunity between target product price and economically justifiable priceBy facilitating extensive scenario analyses, an early CEM can help inform your: 

  • target product profile (TPP)
  • estimate economically justifiable price (EJP) and inform your value-based price strategy
  • phase 2/3 clinical trial endpoints and study design
  • target patient population(s)
  • potential value arguments relative to alternative treatments. 

Ultimately, the early CEM can serve as the foundation for the launch CEM you will need to support health technology assessment (HTA) submissions. 

Early ModelLaunch model

Context

  • Developed in pre/phase 2/early phase 3
  • Limited data available, reliance on TPP
  • Future shifting comparators and treatment paradigm
  • Clinical and commercial colleagues independently developing an understanding of the disease and product

Context

  • Developed during phase 3, finalized at launch
  • Final model input data available (e.g., clinical trial, indirect treatment comparison, utility analysis, certain real-world evidence)
  • Requires advanced, complex statistical and health economics analyses

Objectives

  • Develop economic value strategy 
  • Identify value drivers and data gaps
  • Inform integrated evidence generation plans
  • Estimate potential economically justifiable price under a variety of scenarios
  • Inform launch/HTA CEM

Objectives

  • Assess cost-effectiveness and uncertainty around incremental cost-effectiveness ratio
  • Fulfill HTA requirements
  • Communicate economic value of new treatment in target markets around the world

Dissemination

  • Internal use only 
  • Sometimes disease model or structure published

Dissemination

  • Submitted to HTA authorities
  • Often published