How Much Value Would a Treatment for Alzheimer’s Disease Offer? Cost-Effectiveness Thresholds for Pricing a Disease-Modifying Therapy

Author(s): Hankyung Jun*, Sang K. Cho, Elmar R. Aliyev, Soeren Mattke, Sze-Chuan Suen

Journal Name: Current Alzheimer Research

Volume 17 , Issue 9 , 2020

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Background: Recent trials suggest that disease-modifying therapy (DMT) for Alzheimer’s disease may become available soon. With the expected high price and a large patient pool, the budget impact will be substantial.

Objective: We explore combinations of effectiveness and price under which a DMT is cost-effective.

Methods: We used an open-source model to conduct two-way scenario analyses for both payer and societal perspectives, varying price, and treatment effect size simultaneously. The analysis generates costeffectiveness threshold prices over a potential range of DMT effectiveness in patients aged 65+ with mild cognitive impairment due to Alzheimer’s disease in the US.

Results: Under the willingness-to-pay a threshold of $150,000 per quality-adjusted life year and assuming 30% risk reduction relative to the standard of care, the maximum cost-effective price of a DMT per patient per year is ~$22,000 and ~$15,000 from societal and payer perspectives, respectively.

Conclusion: Joint variation of price and treatment effect size can help assess the cost-effectiveness of a potential Alzheimer’s disease treatment.

Keywords: Alzheimer's disease, dementia, mild cognitive impairment, cost-effectiveness analysis, pricing, drug development, disease-modifying therapy.

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Article Details

Year: 2020
Published on: 15 January, 2021
Page: [819 - 822]
Pages: 4
DOI: 10.2174/1567205017666201203121907
Price: $65

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