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Cost-effectiveness Analysis

J.Robert Beck, MD

JAMA. 1990;264(1):83-84.

	Since this article does not have an abstract, we have provided the first 150 words of the full text PDF and any section headings.

The merchandisers of new pharmaceuticals have three principal features to consider when promoting a new drug: (1) Is it more effective than a competitor against the condition being treated? (2) Is it less costly? (3) Does it exhibit fewer side effects? With the costs of drug development, approval, and marketing continually increasing,¹ it is rare to find a new medication that is less expensive than its predecessors. Advertisements in this and similar journals trumpet increased efficacy as the easiest concept to grasp in choosing among new drugs. Unfortunately for the manufacturers, not all new preparations can demonstrate increased potency, enhanced bioavailability, or better clinical results. In some recent cases, fewer adverse reactions are the distinguishing features of newer products.

How do you sell a medication that might be more costly, just as effective, and have fewer side effects? Cost-effectiveness analysis offers an answer. This technology compares the health effects . . . [Full Text PDF of this Article]

Author Affiliations
From the Biomedical Information Communication Center and the Department of Clinical Pathology, Oregon Health Sciences University, Portland.

Footnotes
The author consults for Pharmacon International, a consulting firm that offers decision support services to the pharmaceutical industry.

Reprint requests to Biomedical Information Communication Center, Oregon Health Sciences University, 3181 SW Sam Jackson Park Rd, Portland, OR 97201-3098 (Dr Beck).

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