Health Economics and Outcomes Research in the Pharmaceutical Industry
Health economics and outcomes research (HEOR) demand has grown alongside utilization of real-world data (RWD) in healthcare decision-making. Sectors influenced and impacted by use of HEOR evidence include pharmaceutical companies (manufacturers and distributors), healthcare institutions, payers, and government agencies. HEOR professionals hold vast knowledge in economic science and recent clinical studies and seek to improve patient quality of life.
What Is HEOR?
HEOR is a field of research focused on generating evidence of value for healthcare interventions, including pharmaceuticals, developed by life science and pharmaceutical companies.
HEOR is a combination of economic and outcomes evaluation which establishes and measures links between interventions and cost and/or patient outcomes. HEOR professionals use a variety of data sources to demonstrate product value, provide evidence-based guidance on improvement of care, and assess product competitive capacity in the market. Common data sources for HEOR professionals include clinical trial data, claims and billing data, financial data, and other RWD sources.
Using HEOR to Inform Pharma Research Decision-Making
HEOR is a broad umbrella, within which many varied analysis types exist. Broadly, the objectives of HEOR analysis within the context of the pharmaceutical industry can be described as determining product (diagnostic, treatment, or device) value, guiding decision-making (across stakeholders), comparing products, and communicating product and strategy value.
Evidence generated by HEOR experts is widely used across the pharmaceutical industry to guide decision-making and strategic trends within the company, such as determining new product pipeline development direction and opportunities for improvement and remarketing of existing post-market products.
As precision medicine and value-based care become increasingly important within the market, HEOR evidence has shifted from a supporting role to something much more critical in strategy development. HEOR professionals contribute to the understanding of real-world patient population needs and access in the categorizes of cost-effectiveness, efficacy, safety, quality, and dosage of products. HEOR experts marry pharmaceutical product economic benefits with overall human value, especially in the real-world setting.
Types of HEOR Pharma Studies
Given HEOR’s ability to impact decision-making across drug development life cycle, there are many HEOR methodologies that may be implemented, depending on need. Some examples of HEOR studies include:
- Systematic Literature Review (SLR)
- Evidence Generation Planning
- Clinical and Claims Database Analyses
- Chart Review
- Other Patient-Centered Outcomes Research
- Cost Effectiveness
- Cost Burden
- Economic Modeling
Market Access and HEOR for Pharmaceutical Companies
Unlock the full potential of your market access strategy by partnering with Magnolia Market Access. Our HEOR services provide actionable insights, robust value dossiers, and tailored economic models that resonate with payers—empowering you to optimize patient outcomes while demonstrating clear value. Let us help you navigate complex healthcare landscapes.
Magnolia Market Access Authors: Pamela Landsman-Blumberg, Jessica Duchen, Brenden Shnay
