Health Economics and Outcomes Research Spending Varies Greatly Among Developing Compounds and Marketed Products

RESEARCH TRIANGLE PARK, NC--(Marketwired - April 15, 2015) - According to a new report by life sciences intelligence firm Cutting Edge Information, surveyed global health economics and outcomes research (HEOR) executives spend between $75,000 and $1.4 million to support developing compounds. Once they become branded products, between $150,000 and $1.1 million is spent.

The amount that pharmaceutical executives invest in health economics and outcomes research for developing and marketed brands varies greatly depending on a number of factors. First and foremost, available resources, including the ability to perform and/or coordinate such research, dictate HEOR spending. Other factors include the amount of competition, the price point and the types of studies needed to support payer questions. 

"We have found that increasing payer demands are pushing pharmaceutical companies to invest more in their HEOR programs," says Jacob Presson, senior research analyst at Cutting Edge Information. "Obviously, though, companies want to target payer needs directly and spend where they know that it will really make a difference."

"Building World-Class HEOR Teams: Creating Convincing Value Proposition for Payers," available at http://www.cuttingedgeinfo.com/research/market-access/health-economics-and-outcomes-research/, highlights HEOR group structure, staffing, and spending at pharmaceutical and medical device companies around the world. This research allows health economics groups to benchmark their activities against the rest of the industry and make sure that they are supporting their products effectively. Highlights of this study include:

• Benchmarks showing HEOR spending from 2013 to 2015 per company and on a per-product basis
• Data showing HEOR group oversight, leadership and funding sources
• Executive perspectives on demonstrating the value of HEOR internally
• Insights on how to ensure that stakeholders beyond payers, such as patients and physicians, are understood when developing health economics research.

For more information about health economics and outcomes research, please download the report summary at http://www.cuttingedgeinfo.com/download/?ref=23793 or contact Rachel Shockley at 919-433-0211.