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The New Battleground For Novel Diabetic Agents: Incremental Cost-Effectiveness Ratio

Diabetes remains one of the hottest R&D areas for the pharmaceutical industry. Physicians now have numerous therapeutic options, beyond insulin and glucagon, to choose from and the research pipeline suggests that the selection may become more diverse. There is also a seemingly endless pipeline of novel mechanisms of action (MOAs) attempting to provide better HbA1c control and preserve beta-cell functioning. As more novel therapeutics and me-too competitors enter the diabetes market, the treatment algorithm will become even more inundated, which will pressure pharmaceutical players to develop marketing strategies and clinical programs that will highlight the unique value of their branded therapeutic.

In this article, Jeff Stoll analyzes why new therapeutics will increasingly need to demonstrate cost effectiveness, or more specifically incremental cost-effectiveness ratio (ICER), which is creating a higher hurdle for new therapeutics, especially new biologic agents.