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Using local hospital data to prevent a mandatory price cut for a cardiovascular drug

Health Economics

Using local hospital data to prevent a mandatory price cut for a cardiovascular drug

Project Scope

Defend the premium price of an established heart medication facing a mandatory government price review

KSA

KSA

Challenge

Saudi authorities (NUPCO) flagged the drug for a potential 20% price cut due to the arrival of cheaper competitors. Global clinical trials were insufficient to prove local value and demonstrate the clinical superiority against competitors

Solution

We partnered with three major KSA hospitals to analyze retrospective patient records (Real-World Evidence)

  • Critical distinction: We compared the rate of rehospitalization for patients on our client's drug versus the competitors
  • Cost-Consequence Analysis: We developed a model demonstrating that the higher acquisition cost of the therapy was fully offset of preventing the downstream interventions, specifically cardiac surgeries, resulting in net savings

Results

  • The local evidence demonstrated lower hospitalization rates validating the price premium
  • This secured the drug value convincing the authorities to revise the price cuts and maintain the drug's current reimbursement status