SOURCE: Cutting Edge Information

Cutting Edge Information

February 15, 2010 12:12 ET

Pharmacoeconomics to Get Bigger Budgets, According to Preliminary Survey Results

Cutting Edge Information Reports Findings From Ongoing Study

RESEARCH TRIANGLE PARK, NC--(Marketwire - February 15, 2010) - This year, drug makers' pharmacoeconomics groups will spend more money than ever before -- a clear sign of the function's growing importance to success in the pharmaceutical and biotechnology sectors.

Early results from Cutting Edge Information's (http://www.cuttingedgeinfo.com) ongoing survey, "Improving Pharmacoeconomics and Health Outcomes," show that 2 out of 3 respondents will increase pharmacoeconomics spending throughout 2010. Zero respondents plan to reduce their budgets.

"As governments and payers worldwide keep a close eye on climbing healthcare costs, drug brands need to prove more than efficacy and safety," said Jason Richardson, president of Cutting Edge Information. "They need to show cost effectiveness."

Pharmacoeconomics, the intersection of health outcomes and financial considerations, has grown in prominence as costs and reimbursement issues pose challenges to drug makers. Just two years ago, the majority of surveyed companies waited until Phase 3 trials to launch their pharmacoeconomics work. Nowadays, teams kick off studies in Phase 2 and even in Phase 1, and more money is flowing to these early-stage endeavors.

Teams do this early work to ensure that they collect the right data, which eventually goes before regulatory agencies and payer organizations to establish a drug's overall benefit -- and win placement on payer formularies.

According to Richardson, "Neither patients nor bottom lines benefit from therapies that get buried."

The survey, open until February 19 at http://www.cuttingedgeinfo.com/surveys/pharmacoeconomics/pharmacoeconomics.htm, identifies how pharmacoeconomics strategies are changing to meet the growing demand for health outcomes data. Findings will allow survey respondents to:

  --  Benchmark spending and staffing levels
  --  Learn how top companies customize pharmacoeconomics strategy to meet
      the needs of individual brands
  --  See how the function has grown by coordinating with numerous other
      internal functions
  --  Understand the growing importance of health outcomes liaisons and
      risk-sharing agreements
  --  Discover how effective pharmacoeconomics teams measure ROI through
      quantitative and qualitative assessments and prove their value to
      their organizations

In exchange for completing a survey, respondents receive a complimentary copy of the results when they become available.

"This study will provide pharmacoeconomics professionals with ammunition to promote their groups and gain the resources necessary to best support brands," said Shaylyn Pike, lead analyst for the study. "Without an effective pharmacoeconomics strategy in place early in development, brands can launch at a disadvantage."

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