India is wasting hundreds of crores of rupees every year due to non-application of the concept of pharmacoeconomics within the pharmaceutical industry and healthcare institutions. With product patent regime approaching and expansion of the health insurance segment, it has become more necessary than ever to take pharmacoeconomics as a practice across the industry and institutions in the country, said experts speaking at a one day seminar on the Pharmacoeconomics organized by the Pharmaceutical and Allied Manufacturers' and Distributors' Association Ltd at the Bombay College of Pharmacy in Mumbai.

Pharmacoeconomics is that branch of economics that applies cost-benefit, cost-effectiveness, cost-minimisation, and cost-utility analyses to compare the economics of different pharmaceutical products or to compare drug therapy to other treatments.

In case of hospitals, a pharmacoeconomic study would help in knowing the best possible medicine for a particular illness to be given to patients, taking into account parameters like cost-effectiveness and efficacy of the drugs compared.

Dr Dev S Pathak, US-based expert on pharmacoeconomics and professor and dean at the Robert Stempel School of Public Health, Florida International University was the chief guest at the seminar.

"Pharmacoeconomics is quite essential for the Indian industry in today's changing times. The healthcare institutions in the country would realize the benefits of pharmacoeconomics when a lot of innovative and costly drugs would enter Indian market post product patent regime. Also insurance companies will make use of pharmacoeconomics to give the best possible medicine to its clients in the most cost effective way," said Dr Pathak.

The country is losing a lot of revenue due to a lack of awareness on the subject. According to Dr Pathak, institutions and pharma companies should have a specific department on pharmacoeconomics in their organizations. The country is already facing shortage of pharmacoeconomists and to fill the gap, he urged the educational institutions to offer more courses on the subject.

According to Subodh Pirolkar, president, Indian Pharmaceutical Association, in the next 3-4 years, the country will require the services of more than 30,000 pharmacoeconomists. "Today, a hospital as big as Hinduja, has a separate department on pharmacoeconomics and employs about five pharmacoeconomists in it," he said.

Devinder Pal, president, PAMDAL, gave the industry perspective of pharmacoeconomics. Explaining what pharmacoeconomics is all about, he said, the cost of healthcare is rising everyday and is bound to keep rising with the cost of basic research doubling to almost $ 900 million for new chemical entities (NCEs). The study of pharmacoeconomics will help researchers to decide whether such a cost is justified.

"There are several options before research analysts in developing NCEs or new drug delivery systems (NDDS). Pharmacoeconomics will help them decide the cost benefit of each option. Moreover, many countries are now demanding pharmacoeconomic data from pharmaceutical companies in support of their pricing proposals," said Pal.

PAMDAL has played an active role in introducing pharmacoeconomic education in the country's educational institutions. Recently, PAMDAL along with Indian Pharmaceutical Association assisted the Bombay College of Pharmacy, Mumbai over incorporating a PGD course in pharmacoeconomics. PAMDAL was also instrumental in introducing a course on the subject at KM Kundananai College of Pharmacy in Mumbai.