| Literature DB >> 35190252 |
Melanie D Whittington1, Steven D Pearson2, David M Rind2, Jonathan D Campbell2.
Abstract
OBJECTIVES: This study aimed to estimate the cost-effectiveness of remdesivir, the first novel therapeutic to receive Emergency Use Authorization for the treatment of hospitalized patients with COVID-19, and identify key drivers of value to guide future pricing and reimbursement efforts.Entities:
Keywords: COVID-19; cost-effectiveness; remdesivir; value assessment
Mesh:
Substances:
Year: 2022 PMID: 35190252 PMCID: PMC8856900 DOI: 10.1016/j.jval.2021.11.1378
Source DB: PubMed Journal: Value Health ISSN: 1098-3015 Impact factor: 5.101
Rationale for model choices and assumptions.
| Model choice or assumption | Rationale |
|---|---|
| The perspective of our analysis focuses on costs to the healthcare payer. | The complexity of the societal impact of the COVID-19 pandemic challenges the ability to estimate the impact of a noncurative treatment on societal factors such as unemployment, taxes, and education. Further, it is unlikely that policy makers will find pricing that shifts societal economic benefits to a single life science company appropriate. |
| The price of remdesivir was $520 per vial and was in addition to the price of the COVID-19 hospitalization. | This price aligns with the price the manufacturer stated would be charged to private payers. The manufacturer announced a lower price for government-sponsored payers; nevertheless, because the government-sponsored price is only for those government payers who directly purchase remdesivir from the manufacturer, which represents a minority of government-sponsored payers in the United States, the private payer price was used in this analysis. Patients not receiving mechanical ventilation received 6 vials; patients receiving mechanical ventilation received 11 vials based on the FDA package insert. |
| Remdesivir is not associated with a survival benefit. | Neither individual trials nor a large meta-analysis suggested a significant improvement in survival associated with remdesivir. Extensive consideration of all the data and engagement with stakeholders informed this decision, and this assumption was tested in a scenario analysis. |
| The COVID-19 hospitalization would be reimbursed as a bundled payment that varied based on the level of respiratory support received. | This most closely aligns with a bundled payment approach where an episode of care is reimbursed as a single payment. In a scenario analysis, we modeled the reimbursement for the hospitalization based on a per diem payment structure. |
| No ongoing cost or disutility associated with COVID-19 was applied after hospital discharge. | We do not attempt to quantify long-term sequelae in the results for numerous reasons, including a lack of consensus on a standardized definition and duration of long COVID-19, mixed estimates of the percentage of patients who experience long COVID-19, no data on the influence of remdesivir on long COVID-19, no data to suggest long COVID-19 differs by time to recovery, and currently available data originating from small samples. Primarily, we do not quantify long COVID-19 in our analyses because it would not be a key driver of the findings for the cost-effectiveness of remdesivir. |
FDA indicates Food and Drug Administration.
Cost-effectiveness of remdesivir compared with standard of care, base-case analysis.
| Moderate to severe population | Remdesivir costs, $ | Hospitalization costs, $ | Other healthcare costs, $ | Total QALYs | ICER ($/QALY), $ | Value-based price, $ |
|---|---|---|---|---|---|---|
| Remdesivir + SoC | 3989 | 36 694 | 272 764 | 12.189 | $298 200 | 2470-3080 |
| SoC | 0 | 38 853 | 272 764 | 12.182 | ||
| Incremental | 3989 | −2159 | 0 | 0.006 |
Note. SoC includes dexamethasone for patients requiring respiratory support.
ICER indicates incremental cost-effectiveness ratio; QALY, quality-adjusted life-year; SoC, standard of care.
Given no survival benefit, the life-years were the same for the intervention and SoC arm, equating to 15.164 life-years in the moderate to severe population and 16.995 life-years in the mild population.
Value-based prices reported are for a range of thresholds from $50 000/QALY to $150 000/QALY.
Cost-effectiveness of remdesivir, assuming a survival benefit.
| Moderate to severe population | Remdesivir costs, $ | Hospitalization costs, $ | Other healthcare costs, $ | Total LYs | Total QALYs | ICER ($/QALY), $ | Value-based price, $ |
|---|---|---|---|---|---|---|---|
| Emerging therapy + SoC | 3989 | 36 694 | 275 717 | 15.281 | 12.278 | 50 100 | 4000-13 500 |
| SoC | 0 | 8 853 | 272 764 | 15.164 | 12.182 | ||
| Incremental | 3989 | −2159 | 2953 | 0.117 | 0.095 |
Note. SoC includes dexamethasone for patients requiring respiratory support.
ICER indicates incremental cost-effectiveness ratio; LY, life-year; QALY, quality-adjusted life-year; SoC, standard of care.
Value-based prices reported are for a range of thresholds from $50 000/QALY to $150 000/QALY.
Figure 1Influence of standard of care mortality on cost-effectiveness.
Figure 2Influence of per diem hospitalization cost on cost-effectiveness of remdesivir in moderate to severe population, assuming per diem reimbursement structure and no survival benefit.