Drug Evaluation Committee Points to Consider in Cost-Effectiveness Evaluation Learned from Case Studies
March 2023
In Japan, a cost-effectiveness evaluation system was fully implemented in 2019 for the purpose of adjusting drug prices, and the Center for Health Economics and Health Services Research has begun publishing the evaluation results following the full implementation (nine products as of January 2023).Looking overseas, the UK’s NICE (National Institute for Health and Care Excellence) has been conducting similar cost-effectiveness evaluations for about 20 years—albeit under a framework different from Japan’s—and has already accumulated and published numerous evaluation cases.
Cost-effectiveness evaluations ensure transparency and validity by having public analysis agencies review the results of analyses conducted by companies; however, public analysis agencies have raised a wide range of concerns regarding the setting of analysis conditions, the construction of disease progression models, the estimation of model parameters, and methods for addressing data uncertainty.We believe there is much to be learned from NICE and previous examples of actual cost-effectiveness evaluations in Japan. Therefore, while this report is not exhaustive, we have organized typical points of discussion for each topic and provided an explanation of key considerations and corresponding measures.
Cost-effectiveness analysis requires the appropriate selection of methods deemed reasonable, while making the most of available information to provide insights that contribute to decision-making regarding the efficient allocation of healthcare resources.Therefore, while cost-effectiveness analysis does not yield a single “correct” value, we believe that practitioners gaining an understanding of key considerations from the issues raised in previous cases is beneficial for conducting appropriate cost-effectiveness analyses. We hope that this report will serve as a helpful resource for selecting appropriate methods and conducting analyses.
Japan Pharmaceutical Manufacturers Association, Drug Evaluation Committee,
, Data Science Subcommittee, FY2022 Continuing Task Force 7