Health and Access Effects of New Drugs: Combining Experimental and Non-Experimental Data

TitleHealth and Access Effects of New Drugs: Combining Experimental and Non-Experimental Data
Publication TypeReport
Year of Publication2010
AuthorsMichaud, P-C, Lakdawalla, DN, Goldman, D, Sood, N, Cong, Z
KeywordsHealth Conditions and Status, Healthcare, Methodology, Other
Abstract

We propose to combine clinical trial and estimates of behavioral responses in the population to quantify the value of new drug innovations when such values cannot be obtained by randomized experiments alone. New drugs are seen as having two distinct effects on patients. First, they can provide better outcomes for patients currently under treatment, due to better clinical efficacy. Second, they can also provide treatment access to more patients, perhaps by reducing side effects or expanding treatment. We compare these clinical and access effects using claims data, data on the arrival rate of new drugs, and the clinical trials literature on the effectiveness of these drugs. We find that the effect of new drug introductions on the number of patients treated accounts for a substantial majority of the value created by new drugs.

URLhttps://depot.erudit.org/bitstream/003241dd/1/CIRPEE10-38.pdf
Endnote Keywords

Pharmaceutical innovation/effectiveness/cost-benefit analysis/cancer

Endnote ID

26040

Citation Key5824