Budget Impact Analysis for Multi-Indication Targeted Therapy: A Case Study of Cabozantinib Cost-Saving in Algeria as Treatment Option in First-Line & Second-Line Renal-Cell Carcinoma and Second-Line Hepatocellular Carcinoma

Author(s)

Belouizdad M1, Guesmi K2, Oulmane N3, Kezzal N4, Abed N4, Stamboul S4, Touafek N4
1IPSEN, El Biar, Algeria, 2Access Focus, ALGIERS, Algeria, 3Access Focus, Algiers, Algeria, 4IPSEN, Algiers, Algeria

Presentation Documents

OBJECTIVES: Cabozantinib is approved for first-line and second-line advanced-renal-cell-carcinoma (RCC) and second-line advanced-hepatocellular-carcinoma (HCC). However, for a multi-indication medicine, the scale of patient benefit may vary significantly between indications, as would its value-for-money if there is a single, fixed price. We aimed to leverage the cost-saving (CS) generated by introducing Cabozantinib in Algeria, to get payers’ value recognition at indication level and support access for the three indications.

METHODS: A budget impact model (BIM) was developed to evaluate the potential BI of cabozantinib applied in three indications, from payer perspective in Algeria, over 5-year time horizon, by comparing annual costs of cabozantinib with alternative therapies and determining cost-components’ weights for each indication among BI scenarios.

RESULTS: Cabozantinib generated a CS of 101 543€ over 5-years; treatment is the main CS driver covering 74,6% of total BI compared to other cost-components. RCCL1 & RCCL2 generated the highest CS (73 325€ over 5-years); treatment-cost covers 78,83% of total BI. HCCL2 generated CS of 28 217€ over 5-years. At year-5, treatment-costs’ weights are decreasing for RCCL1 (From 90,56% to 58,56%) and HCCL2 (from 65,78% to 45,71%) while increasing for RCCL2 (92,93%). Post-progression and adverse-events management-costs’ weights become substantial for HCCL2 at year-5 (60,86%), while neutral to negative for RCCL1 & RCCL2 at year-5.

CONCLUSIONS: The introduction of Cabozantinib as treatment option for the three indications in Algeria may achieve a substantial total budget saving (2.5% of national oncology budget while RCC & HCC are ranked twentieth), which is mainly driven by drug-price according to Algerian pricing guidelines. Due to differences in target populations, median-overall-survival, median-progression-free-survival and response-rates, the generated CS is more important for RCC vs HCC and cost-components’ weights vary between indications over-time. This provides payers with evidence-based information supporting negotiation processes tailored to specific patient populations, through indication-based and/or weighted-average pricing payment-models (Innovative contractings-models).

Conference/Value in Health Info

2022-11, ISPOR Europe 2022, Vienna, Austria

Value in Health, Volume 25, Issue 12S (December 2022)

Code

EE658

Topic

Economic Evaluation

Topic Subcategory

Budget Impact Analysis, Cost-comparison, Effectiveness, Utility, Benefit Analysis, Trial-Based Economic Evaluation, Value of Information

Disease

No Additional Disease & Conditions/Specialized Treatment Areas

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