A primer on dynamic optimization and optimal control in pharmacoeconomics.

Pharmacoeconomic analyses employ a wide range of techniques and methods to help societies allocate scarce health-care resources wisely, fairly, and efficiently. Techniques such as dynamic optimization and optimal control, however, have yet to be exploited by this field. Although control theory has a long history in mathematical biology and disease management, its application to economic costs in these disciplines has not yet been explored.

Economic and developmental considerations for pharmacogenomic technology.

The pharmaceutical industry's core business is the innovation, development and marketing of new drugs. Pharmacogenetic (PG) testing and technology has the potential to increase a drug's value in many ways. A critical issue for the industry is whether products in development should be teamed with genetic tests that could segment the total population into responders and non-responders.

Mathematical modeling and pharmaceutical pricing: analyses used to inform in-licensing and developmental go/No-Go decisions.

In the face of significant real healthcare cost inflation, pressured budgets, and ongoing launches of myriad technology of uncertain value, payers have formalized new valuation techniques that represent a barrier to entry for drugs. Cost-effectiveness analysis predominates among these methods, which involves differencing a new technological intervention's marginal costs and benefits with a comparator's, and comparing the resulting ratio to a payer's willingness-to-pay threshold. In this paper we describe how firms are able to model the feasible range of future product prices when making in-licensing and developmental Go/No-Go decisions by considering payers' use of the cost-effectiveness method.