Economic evaluations: what they are and why you should be conducting them

In the world of health economics and outcomes research, life sciences companies can benefit from unlocking the power of economic evaluations. These cutting-edge tools offer a unique advantage by estimating healthcare innovations’ potential value for money across varied patient populations. By accurately projecting the value of innovative solutions, manufacturers can exceed expectations and ensure maximum return on investment. This crucial information paves the way for transparent strategy formation and thoughtful decision-making [1].

Economic evaluations are comprehensive analytical solutions scrutinizing an innovation's real-world economic footprint and value. These methods, including cost-effectiveness and budget impact analyses, provide a nuanced understanding of an innovation’s health impact and financial implications. They are instrumental for life science manufacturers, offering crucial insights into market access, shaping competitive pricing strategies, and informing strategic decision-making pathways. Most importantly, economic evaluations serve as a convincing platform to demonstrate the unique value proposition of products to healthcare providers, payers, and patients, strengthening their appeal in the market [2].

Economic evaluations analyze innovations against current options, distinctly highlighting their unique value. This can influence the development and positioning of evidence-based strategies to promote the product's unique value proposition in a competitive market.

These tools employ real-world economic data to help manufacturers, payors, and health systems optimize resource utilization in critical areas such as research and development, marketing, patient outreach, and program implementation. This knowledge aids in formulating well-thought-out strategies and maximizing return on investment, ensuring every business move has a robust data-backed grounding.

Stakeholders see high-quality economic evaluations as trust builders. They transparently communicate an innovation's value to stakeholders, reinforcing their confidence in evidence portfolios. Authentic stakeholder engagement throughout the process enhances corporate reputation and strengthens relationships.

These tools enhance value communication, facilitate optimal resource allocation, and increase stakeholder confidence. This translates into smoother market access, durable stakeholder relationships, and boosted profitability. Life sciences companies can leverage economic evaluations to fortify market presence and drive enduring growth in the pharmaceutical landscape.

Carelon Research’s team of health economics and outcomes research specialists combines advanced data analysis, extensive knowledge across therapeutic areas, and years of experience working with many of the leading life sciences companies to deliver thorough economic evaluations and related solutions.

1. AMA J Ethics. 2021;23(8):E639-647. doi: 10.1001/amajethics.2021.639.

2. AMCP format for formulary submissions - guidance on submission of pre-approval and post-approval clinical and economic information and evidence, version 4.1. AMCP.org. (n.d.). https://www.amcp.org/Resource-Center/format-formulary-submissions/AMCP-Format-for-Formulary-Submissions-4.1