A Matrix to Determine Health Economic Viability Throughout Product Development: A Pharmaceutical Industry Perspective

Abstract

Developing drugs is a risky process. This article presents a conceptual model that guides in identifying the economic viability of a compound throughout its development. Examples are based on the class of antidepressants (ATC Class N06). The characteristics of a compound in development determine the data requirements (clinical, economic, and quality-of-life data) to ensure maximum support for potential reimbursement. The matrix is formed by two drug characteristics of primary importance: indication and mechanism of action. Four scenarios arise from this matrix: new market entry, product development, market expansion, and market penetration. Economic viability incorporates the following parameters: efficacy, safety, patient-reported outcomes, pricing, effectiveness, and formulation. Consequently, development can be made efficient, with reduced waste of resources and funds. The model should ultimately aid in determining how to optimize drug viability and help product teams choose the optimal health economic strategy subject to the market scenario.

Keywords

Health economic Economic Development Matrix Viability

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