The Budget Impact Analysis:
an often overlooked dimension when trying to convince payers!

A health economic evaluation focuses on the cost-effectiveness of one health intervention (e.g. new pharmaceutical) versus another. While in today’s global market environment health economic evaluations are a must for optimizing market access for virtually all new prescription pharmaceuticals, many pharma executives often forget that payers also look at several other factors.  In fact, the reality is that for most payers the following three factors are used:

1. Medical Unmet Need
2. Budget Impact
3. Cost-Effectiveness

In other words, a Budget Impact Analysis (BIA) of a new pharmaceutical in the first 3 to 5 years is often more important for payers in their decision-making process than cost-effectiveness studies. This is because payers look at it from the perspective of a budget holder for whom the cost dimension of his/her decisions over the coming years is most important.

Consequently, the following additional data will be required:

• Number of eligible patients, i.e. the potential target population. Depending on the therapeutic area, prevalence and/or incidence data will be required, which in turn will depend on whether the therapy will be used for a specific indication and thus subpopulation or for the whole patient population
• Current market shares in the potential target population
• The extent to which the new therapy will replace current therapies

So, don’t forget: for many payers, Budget Impact Analyses are even more important than health economic evaluations!

“ Lieven has the unique talent and ability to easily break down highly complex subjects and equip the audience with real and tangible tools. He also provides an understanding of the health economics arena. My only regret is not having attended this workshop earlier, as we all need this set of skills to work within the ever changing pharma environment. Well done, this was time well spent.”

Colin Hurworth, Sales Effectiveness Manager - International Operations, Novo Nordisk - Switzerland

“ The Pharma Market Access course by C.E.L.forpharma in Brussels was a high quality training event facilitated by true experts with a down-to-earth approach. Lots of structured information … and the chance to learn from the presenters as well as from other participants either through interesting questions or through the workshop interactions.”

Cornelia Rendler, Senior Manager Commercial Operations International, Biogen Idec – Switzerland