Topic Interpretation: Pharmacoeconomics

What is Pharmacoeconomics?

Pharmacoeconomics refers to the scientific discipline that compares the value of one drug or drug therapy to another. It is a sub-discipline of Health economics. Pharmacoeconomic study evaluates the cost (expressed in monetary terms) and effects (expressed in terms of monetary value, efficacy or enhanced quality of life) of a drug therapy to healthcare system and society.

Fast-Growing & Globally Important: Pharmacoeconomics utilizes economic methods to evaluate and compare the value of one drug or intervention to another. With serious concerns about the value and cost of drugs and health care, and continuing pressure to reduce budgets, everyone asks, “Where should I spend health care dollars to get the most value?” Pharmacoeconomics answers this question.

A Key to Better Health Care Outcomes: Pharmacoeconomics and its related health economics and outcomes research (HEOR) fields provide insights that guide optimal resource allocation. Pharmacoeconomic data are used by clinicians, health systems, health insurers and payers, policy-makers, health technology assessment agencies, and patients.