Session (CTI)

Purpose: Health economics & outcomes research (HEOR) has become integral in the biopharmaceutical industry, yet its contributions to product success have rarely been quantified. This contrasts sharply with other components of biopharma spending, such as R&D and commercialization campaigns, in which measurement of financial impact and calculation of return on investment (ROI) are routine. The objective of this workshop is to describe the hows and whys of estimating the ROI of HEOR. Description: Participants of this workshop will learn the opportunities and challenges associated with ROI estimation to inform decision making on projects in the HEOR, RWE, and market access domains. Chris Blanchette (moderator) will set the stage by providing an overview of the issues and showcasing non-financial metrics historically adopted by industry to demonstrate impact (10 minutes). David Thompson will describe the ROI estimation framework, which combines decision-analytic modeling techniques with expected Net Present Value (eNPV) calculations of project costs and product revenues accruing over time to assess the potential value of an HEOR project (16 minutes). Montserrat Vera-Llonch will describe criteria that can be used to select HEOR projects for ROI estimation, based on high degrees of: (1) topicality, those projects at the forefront of current methodology and policy discussions; (2) quantifiability, those projects for which impact is clearcut and estimable; and (3) applicability, those projects that comprise a significant share of internal HEOR budgets (12 minutes). Craig Roberts will describe why biopharma HEOR functions may or may not want to routinely assess project value and how doing so could impact budget allocation decisions (12 minutes). The workshop will culminate with an interactive session in which attendees will be asked to suggest and prioritize HEOR projects for ROI assessment based on the criteria introduced in the session (10 minutes).