Global Pharmaceutical Comparative Effectiveness Research Teams Increasing Budgets

The average annual $5 million CER budget is on the Rise

RESEARCH TRIANGLE PARK, NC--(Marketwired - July 21, 2016) - Pharmaceutical companies' comparative effectiveness (CER) managers indicate upward trends in spending from an average $5 million budget, according to a benchmarking study published by Cutting Edge Information.

The study attributes recent year-over-year decreases to changes in the product launch cycle. CER spending can vary drastically between companies because of product portfolios and overall health economics strategies. The study, Comparative Effectiveness Research: Value Stories that Engage Patients, Physicians and Payers, found that the strongest trend toward increased CER budgets can be found in country-level budgets, even though they are significantly smaller than their global counterparts.

"Product launch cycles heavily influence spending, as budgets normally peak as a product approaches launch and payers want certain data," said Jacob Presson, lead author of Cutting Edge Information's benchmarking study

On average, CER budgets nearly doubled between 2013 and 2015. Spending for three surveyed global teams totaled approximately $400,000 per product in 2014. However, this per-product figure often varies depending on crucial factors such as the type of product and the launch region.

There is also a trend toward increasing the number of studies that CER groups run at their companies. The most evident among companies are those that are seeing a decrease in CER spending over the same time period. In reference to the data, global groups average ten studies per year while other higher maintenance products require roughly twenty studies annually.

Comparative Effectiveness Research: Value Stories that Engage Patients, Physicians and Payers, available at, provides metrics on the cost and duration of comparative effectiveness studies, as well as how to best deliver this data to external stakeholders. The report examines the changing priorities with regards to conducting comparative effectiveness research in the United States. Report highlights include:

  • Benchmarking data showing total comparative effectiveness spending and CER spending per product.
  • Top executives' strategic recommendations for delivering CER data to payers -- and using health outcomes liaisons to supplement managed markets account managers' efforts.
  • Data showing the amount of time spent discussing CER with payers.

For more information on comparative effectiveness research, please download Cutting Edge Information's comparative effectiveness data report summary at

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Contact Information:

Elio Evangelista
Senior Director of Commercialization

2014 Comparative Effectiveness Spending (per Product) of All Groups Country-Level Groups Report on Comparative Effectiveness Spending Global Groups Report on Comparative Effectiveness Spending