SOURCE: Cutting Edge Information

Cutting Edge Information

August 19, 2015 09:00 ET

89% of Global Health Economics Teams Have Dedicated Budgets, According to Cutting Edge Information

RESEARCH TRIANGLE PARK, NC--(Marketwired - August 19, 2015) - Central global groups receive 89% of their funding from a dedicated HEOR budget while medical affairs, market access, and brand teams provide funding for a significant number of groups as well, according to a recent study by life sciences intelligence firm Cutting Edge Information.

Health economics and outcomes research (HEOR) budgets are increasing in tandem with the growing importance given to payer considerations for formularies and pricing. Cutting Edge Information's research found that at least a portion of HEOR group budgets comes from dedicated line items.

The study, "Building World-Class HEOR Teams: Creating Convincing Value Proposition for Payers," also found that while many US groups are positioning HEOR under the medical affairs umbrella, globally the role of health economics is still considered to be a commercial activity. Many companies now conduct HEOR operations within a dedicated group. Having a dedicated group allows teams to build consistent experience with the product portfolio and leverage full-time staff to developing crucial HEOR data.

"Among surveyed Top 10 country-level affiliates, 70% receive at least part of their funding from a dedicated budget; half are also funded by medical affairs," said Jacob Presson, senior analyst at Cutting Edge Information. "This finding reflects the large number of Top 10 country-level affiliates that report into the medical affairs side of the organization."

Top 50 affiliate groups are also largely funded by a dedicated budget. A large number of these groups also receive funding from managed markets and market access, in this case reflecting the largely commercial focus of Top 50 affiliate groups.

"Building World-Class HEOR Teams: Creating Convincing Value Proposition for Payers," available at, highlights HEOR group structure, staffing, and spending at pharmaceutical and medical device companies around the world. The report's resource metrics allow health economics groups to benchmark their activities against the rest of the industry and to ensure that they are effectively supporting their products. Highlights include:

  • Benchmarks showing HEOR spending from 2013 to 2015 per company and on a per-product basis.
  • Data showing HEOR group oversight, leadership, and funding sources.
  • Executive perspectives on demonstrating the value of HEOR internally.
  • Insights on how to ensure that stakeholders beyond payers, such as patients and physicians, are understood when developing health economics research.

For other market access topics, view Cutting Edge Information's market access library at

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