Cost-Effectiveness & Budget Impact Modelling

Cost-effectiveness and budget impact analyses are increasingly central to reimbursement decision-making, whether formally by national and regional reimbursement authorities (including National Institute for Health and Care Excellence (NICE), the Canadian Agency for Drugs and Technologies in Health (CADTH) and the Pharmaceutical Benefits Advisory Committee (PBAC) or informally by decision-makers in private healthcare agencies. Cost-effectiveness analysis evaluates the costs and consequences of health interventions by employing decision analytic models to synthesise data derived from clinical trials, stand-alone studies, retrospective administrative database analyses, and systematic reviews and syntheses of published literature. 

ICON is an international market leader in cost-effectiveness analysis. Our Health Economics team has a wealth of research and consulting expertise in economic evaluations in many jurisdictions, and utilises its scientific strengths alongside commercial and regulatory knowledge to achieve reliable and highly-credible results for our clients. 

Our team designs and builds health economic models with the scientific rigor to powerfully and credibly communicate cost-effectiveness and budget impact to national and regional reimbursement authorities and healthcare providers. Our cost-effectiveness models employ tried-and-tested, as well as state-of-the-art methods.

  • Decision tree
  • Markov
    • Cohort simulation
    • Patient-level simulation
  • Partitioned survival
  • Discrete event simulation

We ensure quality control by conducting parallel programming for each model and by incorporating detailed analyses of assumptions, risk and uncertainty associated with study design and the state of knowledge surrounding data and values.

Our team also designs and builds early economic models. These are highly flexible tools based on data from the literature and target product profiles (TPP) which can assist the development of both clinical and commercial strategies for new therapies and ensure buy-in from all relevant functions including regulatory, clinical, medical, and marketing. These models are largely designed to provide an early estimate of cost-effectiveness and explore uncertainty, and can therefore be used to inform :

  • Global economic model framework
  • Pricing strategy
  • Future study design
  • Value propositions and positioning strategies