OBJECTIVES: Decision analysis (DA) is commonly used to perform economic evaluations of new pharmaceuticals.  However, DA analyses can also be used to determine a drug price that would be considered cost effective based on recommended thresholds for economic value.  Using multiples of Malaysia’s per capita GDP as the threshold for economic value as suggested by the World Health Organization (WHO), DA was used to estimate a price per dose for bevacizumab in Malaysia, a drug that provides a 1.4 month survival benefit to patients with metastatic colorectal cancer (mCRC). METHODS: A DA model was developed to simulate progression free and overall survival in mCRC patients receiving chemotherapy with and without bevacizumab. Outcomes for cancer control and side effects were obtained from randomized trials evaluating 1st and 2nd line chemotherapy in mCRC.  Costs for chemotherapy and side effects management were obtained from both public and private hospitals in Malaysia. Utility estimates measured as quality adjusted life years (QALYs) were determined by interviewing 24 oncology nurses using the Time Trade-Off technique.  The price per dose was then estimated using a target threshold of $44,400 per QALY gained, which is three times the Malaysian per capita GDP. RESULTS:   A cost effective price for bevacizumab could not be reached because of the short survival benefit provided.  If the drug were able to improve survival from 1.4 to 3 or 6 months, then the price per dose could be $U.S.567 and $U.S.1,258 and be considered cost effective in Malaysia according to the WHO criteria. CONCLUSIONS: The use of DA modeling for estimating drug price is a powerful technique to ensure value for money.  Such information can be of value to both drug manufacturers and formulary committees because it would facilitate negotiations for value-based pricing in a given jurisdiction.