Skip to main content
Log in

Health Economics in the Canadian Pharmaceutical Industry

  • Original Research Artic
  • Published:
PharmacoEconomics Aims and scope Submit manuscript

Abstract

Objective: To assess the goals, strategic focus, structure, capabilities, activities and effectiveness of health economics (HE) departments in the Canadian pharmaceutical industry, to examine how these have evolved, and the implications of HE in the future of the pharmaceutical industry.

Design and Interventions: A mixture of telephone and face-to-face interviews with members of the HE unit (survey 1) and the chief executive officers (CEOs) [survey 2] of the top 21 Canadian pharmaceutical companies was undertaken in 1997.

Main outcome measures and results: 17 out of 21 companies responded to the first survey, and 12 of the 17 CEOs responded to our second survey. The goals of the HE department in most of the pharmaceutical companies have evolved from supporting efforts to gain reimbursement on government drug plans to include pricing, promotion, internal decision-making and other activities. Members of the HE department perceive their work to be valuable to the company. The CEOs felt that the true value of HE data is not adequately understood by formulary reviewers and, therefore, HE data may be an impediment to market access.

Conclusions: The purpose of the HE department is to demonstrate the value of the company’s product to provincial government insurers. However, pharmaceutical companies are having difficulty justifying the importance of the HE department because of inconsistencies in the interpretation of economic evaluations by healthcare payers.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. MacDonald F. Strategic use for pharmacoeconomics in the early stages of drug development. ADrug Information Association Workshop on Health Economics Presentation: The Impact of Economic Evaluation on New Drug Development and Marketing: 1993 Nov 14–17; Lisbon

  2. Walker S. Socioeconomic evaluation of medicines: a survey of the global pharmaceutical industry. A Drug Information Association Workshop on Health Economics Presentation: The Impact of Economic Evaluation on New Drug Development and Marketing: 1993 Nov 14–17; Lisbon

  3. Kunze ZM, Lumley CE, Walker SR. Socioeconomic evaluation of medicines: a survey of the international pharmaceutical industry. Surrey: Centre for Medicines Research International, 1993: 2–32

    Google Scholar 

  4. Ikeda S, Oliver AJ, Ikegami N. Pharmacoeconomic evaluation in Japanese pharmaceutical companies. Drug Inf J 1998; 32: 169–74

    Article  Google Scholar 

  5. Andersson F. Why is the pharmaceutical industry investing increasing amounts in health economic evaluations?. Int J Technol Assess Health Care 1995; 11: 750–61

    Article  PubMed  CAS  Google Scholar 

  6. Favourable reimbursement for CNS drugs no longer guaranteed. PharmacoEcon Outcomes News 1998; 165: 11

    Google Scholar 

  7. Carmine B. Update and evaluation of Australian guidelines: industry perspective. Med Care 1996 34: DS226–32

    Google Scholar 

  8. Mitchell A. Update and evaluation of Australian guidelines: government perspective. Med Care 1996; 34: DS216–25

    Google Scholar 

  9. Anis AH, Rahman T, Schechter MT. Using pharmacoeconomic analysis to make drug insurance coverage decisions. Pharmacoeconomics 1998; 13: 119–26

    Article  PubMed  CAS  Google Scholar 

  10. Baladi JF, Menon D, Otten N. Use of economic evaluation guidelines: 2 years’ experience in Canada. Health Econ 1998; 7: 221–7

    Article  PubMed  CAS  Google Scholar 

  11. Mandelkar J. Outcomes: the science of prescribing. Bus Health 1995; 13: 28–30

    Google Scholar 

  12. Porter RJ. Economic factors in the development of new antiepileptic drugs. Adv Neurol 1998; 76: 239–44

    PubMed  CAS  Google Scholar 

  13. Clemens K, Garrison LPJ, Jones A, et al. Strategic use of pharmacoeconomic research in early drug development and global pricing. Pharmacoeconomics 1993; 4: 315–22

    Article  PubMed  CAS  Google Scholar 

  14. Todd C. What makes health economics research useful to decision-makers? Pharmaco Econ Outcomes News 1998; 170: 3–4

    Google Scholar 

  15. Chiang PJ, Einarson TR. A survey of pharmacoeconomics in the Canadian pharmaceutical industry. Drug Inf J 1998; 32: 619–27

    Article  Google Scholar 

  16. IMS Canada. IMS academic reference manual: Canadian health care information for pharmacy academics and students. Mississauga (ON): IMS Canada, 1997

    Google Scholar 

  17. Canadian Coordinating Office for Health Technology Assessment (CCOHTA). Guidelines for economic evaluation of pharmaceuticals: Canada. 1st ed. Ottawa (ON): CCOHTA, 1994

    Google Scholar 

  18. Ontario Ministry of Health. Ontario guidelines for economic analysis of pharmaceutical products. Toronto (ON): Queen’s Printer for Ontario, 1994

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Devidas Menon.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Assiff, L., Pollock, M.R., Manzi, P. et al. Health Economics in the Canadian Pharmaceutical Industry. Pharmacoeconomics 16, 669–678 (1999). https://doi.org/10.2165/00019053-199916060-00006

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.2165/00019053-199916060-00006

Keywords

Navigation