RESEARCH TRIANGLE PARK, NC--(Marketwire - August 5, 2010) - Pharmacoeconomics spending is increasing by eight percent this year in the United States, but winning company buy-in remains a challenge for many health economics teams, according to a new study by Cutting Edge Information.
Sixty-six percent of surveyed respondents across all life science sectors reported having higher spending levels, while 27% expected spending to stay the same, and only seven percent reported a decrease. Health economics spending in Europe and Canada increased 21% and emerging markets have seen a 45% increase in funding, according to the new study, "Health Economics and Outcomes Research: U.S., Europe, Canada and Emerging Markets."
Emerging Markets Investment
"Rising budgets for health economics and outcomes research makes sense, as payers' requirements are becoming increasingly complex and stringent," said Jason Richardson, president of Cutting Edge Information. "Companies also use the data to inform portfolio decisions throughout drug development and commercialization."
The growth in emerging markets underscores the industry's desire to expand capabilities in these regions. Small pharmaceutical and biotechnology companies made the largest increases in their pharmacoeconomics investments, with average spending growth of 55 percent.
Large and mid-sized drugmakers also showed a smaller, but healthy growth rate of about 15 percent. Medical device companies' average spending on health economics has remained flat. According to some interviewed executives, medical device leaders may be currently stressing tight fiscal control over health economics investment.
Health Economics Stakeholder Communication
Research findings emphasize that teams must continue working to achieve buy-in and prove value -- a task especially difficult for a specialized function that often must use economically complex vocabulary to communicate long-term value. Project participants identified communication with internal and external clients as a key challenge because stakeholders bring widely varying perceptions about the value of pharmacoeconomics. The study (http://www.cuttingedgeinfo.com/health-economics) includes strategies for improving health economics messaging and eliminating communication gaps.
The study's benchmarks focus on health economics and outcomes research (HEOR) structures, staffing, compensation, activities, outsourcing and performance metrics. The report examines next practice trends in health economics research, including health outcomes liaisons, risk sharing agreements, and comparative effectiveness.
Cutting Edge Information is a research and consulting firm serving the life science industry.
Contact Information:
For more information, contact:
Stephanie Swanson
919-433-0212