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Quantifying the Value of Personalized Medicines: Evidence from COX-2 Inhibitors.

Quantifying the Value of Personalized Medicines: Evidence from COX-2 Inhibitors.

Authors :
Sood, Neeraj
Philipson, Tomas J.
Huckfeldt, Peter
Source :
Forum for Health Economics & Policy; Jan2013, Vol. 16 Issue 1, p-1, 22p, 1 Diagram, 3 Charts, 3 Graphs
Publication Year :
2013

Abstract

We develop a conceptual framework for estimating the value of personalized medicines. We show that personalizing medicines generates value from two sources. The first is a market-expansion effect by persons who initiate treatment due to reduced pre-treatment uncertainty about the effectiveness or side effects of treatment. The second is a market-contraction effect due to discontinuation of treatment by persons unresponsive to treatment. We apply the conceptual framework to evaluate the value of a predictive test to assess whether patients are at elevated risk for cardiac complications from COX-2 inhibitors. We find that this predictive test would yield an overall value to patients of about $16 billion per year or $1284 per likely patient. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
15589544
Volume :
16
Issue :
1
Database :
Complementary Index
Journal :
Forum for Health Economics & Policy
Publication Type :
Academic Journal
Accession number :
91277417
Full Text :
https://doi.org/10.1515/fhep-2013-0005