OBJECTIVES: The rapidly rising cost of drug therapy is a concern to healthcare providers throughout the world. Based on Iran Food and Drug Administration( IFDA) regulation For the domestic and imported products the routine pricing policy is cost plus and external reference-based pricing.The pharmacoeconomics committee as a main portion of Iran Drug Selection Committee (IDSC) in IFDA evaluate the cost-effectiveness of medicines based upon the comparator price and the differential value. In this way we want to evaluate The impress of pharmacoeconomics in pricing decisions In IFDA.

METHODS: The role of of pharmacoeconomics was assessed with reviewing the economic evaluation studies that was applied and recorded by companies in IFDA. Also the minutes of pharmacoeconomics committees was reviewed in order to assessing the outcomes of pharmacoeconomics committe the in 2 past years.

RESULTS: The investigation showed that "Cost" components include comparison with other treatments, total cost per year, and cost per patient is the essential part in the evaluation of cost-effectiveness in the committee . All 3 of these approaches have utilized of experts to guide the decision making process in pricing. In the next step Other relevant cost factors include drug administration ,monitoring costs and budgetary impact might be used as evidences to decision making.

CONCLUSIONS: Drug costs are important although drug acquisition costs and total budgetary impact will be important in pricing decision making. the price of a new medicine can be established in this committee that would be important input into strategic pricing decisions. It also introduces a new criterion of evaluation entitled‘‘budjet impact’’ that improve the allocative efficiency of health care financing. Other measurable factors such as cost, and quality-of-life concerns, provides a more balanced approach in the evaluation of specialty medications.