BUDGET IMPACT OF INTRODUCING TAPINAROF, A NEW ARYL HYDROCARBON RECEPTOR AGONIST, FOR THE TREATMENT OF ATOPIC DERMATITIS IN ADULT AND PEDIATRIC PATIENTS, FROM A U.S. MEDICAID PLAN PERSPECTIVE
Author(s)
Daisuke Goto, PhD1, Leon Dupclay, Pharm.D., Ph.D.1, Krishna Tangirala, MBA, MPH, BAMS1, David Proudman, MPH2, Avani Samandur, BS2, Brian Seal, MBA, RPh, PhD1, K Neena Chima, MD, FAAD3.
1Organon, Jersey City, NJ, USA, 2Analysis Group, Menlo Park, CA, USA, 3Schweiger Dermatology Group, Wayne, NJ, USA.
1Organon, Jersey City, NJ, USA, 2Analysis Group, Menlo Park, CA, USA, 3Schweiger Dermatology Group, Wayne, NJ, USA.
OBJECTIVES: Tapinarof is a first-in-class topical aryl hydrocarbon receptor agonist indicated for all severity levels of atopic dermatitis (AD) in 2+ year-old patients. The objective was to estimate the budget impact of introducing tapinarof to a U.S. Medicaid plan for AD treatment and measure the financial value of tapinarof’s treatment-free periods.
METHODS: A budget impact model with a 2-year time horizon was developed to compare formulary budgets with and without tapinarof. Group-specific data (new and chronic pediatric and adult patients) were used for the calculations, including published annual incidence and prevalence, age-based population estimates, and annual AD treatment utilization. Comparators included topical and systemic therapies approved and used in the U.S. Year 2 tapinarof market share was assumed to be 1.0% and taken from all comparator treatments. Avoided cost of existing treatments during a treatment-free period was calculated, where 51.9% of tapinarof patients experienced an average treatment-free period of 80 days as observed in the ADORING-3 clinical trial.
RESULTS: In a hypothetical 1-million member Medicaid plan, the model estimated that 10,122 chronic adult, 19,294 chronic pediatric, 3,749 new adult, and 7,147 new pediatric patients would receive AD treatment in a typical year, totaling 40,312 patients, with 403 receiving tapinarof in year 2. The introduction of tapinarof was associated with a net budget impact of $0.017 in year 1 and $0.028 in year 2 per member per month (PMPM). Deterministic sensitivity analysis of varying key inputs confirmed the robustness of these results. The financial value of the 80-day treatment-free period was -$0.019 PMPM in year 1 and -$0.031 PMPM in year 2.
CONCLUSIONS: Introducing tapinarof for AD treatment is associated with a minimal budget impact. Treatment-free periods provide measurable value by reducing the treatment cost to zero for an extended time period for more than half of patients.
METHODS: A budget impact model with a 2-year time horizon was developed to compare formulary budgets with and without tapinarof. Group-specific data (new and chronic pediatric and adult patients) were used for the calculations, including published annual incidence and prevalence, age-based population estimates, and annual AD treatment utilization. Comparators included topical and systemic therapies approved and used in the U.S. Year 2 tapinarof market share was assumed to be 1.0% and taken from all comparator treatments. Avoided cost of existing treatments during a treatment-free period was calculated, where 51.9% of tapinarof patients experienced an average treatment-free period of 80 days as observed in the ADORING-3 clinical trial.
RESULTS: In a hypothetical 1-million member Medicaid plan, the model estimated that 10,122 chronic adult, 19,294 chronic pediatric, 3,749 new adult, and 7,147 new pediatric patients would receive AD treatment in a typical year, totaling 40,312 patients, with 403 receiving tapinarof in year 2. The introduction of tapinarof was associated with a net budget impact of $0.017 in year 1 and $0.028 in year 2 per member per month (PMPM). Deterministic sensitivity analysis of varying key inputs confirmed the robustness of these results. The financial value of the 80-day treatment-free period was -$0.019 PMPM in year 1 and -$0.031 PMPM in year 2.
CONCLUSIONS: Introducing tapinarof for AD treatment is associated with a minimal budget impact. Treatment-free periods provide measurable value by reducing the treatment cost to zero for an extended time period for more than half of patients.
Conference/Value in Health Info
2026-05, ISPOR 2026, Philadelphia, PA, USA
Value in Health, Volume 29, Issue S6
Code
EE412
Topic
Economic Evaluation
Topic Subcategory
Budget Impact Analysis
Disease
No Additional Disease & Conditions/Specialized Treatment Areas