Dranitsaris, GeorgeLubbe, Martie S.Truter, IlseCottrell, WayneSpirovski, Biljana2012-02-292012-02-292010Dranitsaris, G. et al. 2010. The application of pharmacoeconomic modelling to estimate a value-based price for new cancer drugs . Journal of evaluation in clinical practice, 18(2): 343-351. [https://doi.org/10.1111/j.1365-2753.2010.01565.x]1356-12941365-2753 (Online)http://hdl.handle.net/10394/5950https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1365-2753.2010.01565.xhttps://doi.org/10.1111/j.1365-2753.2010.01565.xRationale, aims and objectives  Value‐based pricing has recently been discussed by international bodies as a means to estimate a drug price that is linked to the benefits it offers patients and society. The World Health Organization (WHO) has recommended using three times a country's per capita gross domestic product (GDP) as the threshold for economic value. Using the WHO criteria, pharmacoeconomic modelling was used to illustrate the application of value‐based price towards bevacizumab, a relatively new drug that provides a 1.4‐month survival benefit to patients with metastatic colorectal cancer (mCRC). Methods  A decision model was developed to simulate outcomes in mCRC patients receiving chemotherapy ± bevacizumab. Clinical data were obtained from randomized trials and costs from Canadian cancer centres. Utility estimates were determined by interviewing 24 oncology nurses and pharmacists. A price per dose of bevacizumab was then estimated using a target threshold of $CAD117 000 per quality adjusted life year gained, which is three times the Canadian per capita GDP. Results  For a 1.4‐month survival benefit, a price of $CAD830 per dose would be considered cost‐effective from the Canadian public health care perspective. If the drug were able to improve patient quality of life or survival from 1.4 to 3 months, the drug price could increase to $CAD1560 and $CAD2180 and still be considered cost‐effective. Discussion  The use of the WHO criteria for estimating a value‐based price is feasible, but a balance between what patients/governments can afford to pay and the commercial viability of the product in the reference country would be requiredChemotherapyColorectal cancerCost analysisDrug pricingValue