Value of Pharmaceuticals to Society
A major global pharmaceutical manufacturer sought out Analysis Group for help with an industry-wide challenge: how can society’s investment in pharmaceuticals be valued? Much research and many publications have measured the efficacy and economics of specific treatments versus alternative costs, yet comparatively little literature exists to answer the question of whether society’s investment in new medical treatment yields measurable overall returns. Working with our client and several distinguished academic affiliates, Analysis Group has developed a methodology to estimate the value created by certain drugs or classes of therapy. Quantifying the value created -- whether realized through increased life expectancy, improved quality of life, or other measures -- makes it possible to compare that value to the expenditure society made to realize the benefit. The results of these efforts have helped our client better communicate the value of its products, as well as overall industry efforts, to governments, customers, health care providers, and consumers.