An Overview on Offshoring in HEOR Services

HEOR services act as tool for Evidence based marketing and a negotiation lever for pricing and reimbursement as well as it is being used in trial design, simulation etc. in clinical R&D. Pharma companies are facing various hurdles in HEOR procurement like highly fragmented supplier base, increasing HEOR FTE rates, Tail end management etc. Pharma companies are exploring number of options like bundling of services, Long term strategic relationship, offshoring of HEOR services etc. in order to overcome the above hurdles. Number of HEOR sub services like Economic modelling, Meta-Analysis, HTA submissions etc. are offshored depending on factors like complexity, amount of data required, criticality of services etc. Due to constant pressure on cost reduction pharma is exploring offshoring of HEOR services to various emerging markets as well as few of developed markets based on criticality of service. The HEOR offshoring is expected to grow in coming 5 years as it enables them to leverage cost advantage along with higher volume capacities, niche specialty and ease in study customization, flexibility in manpower etc.

Introduction to HEOR Services The Health economics and outcomes research (HEOR) act as complement to clinical development information in order to assist decision makers and healthcare payers regarding patient access to specific drugs, services and reimbursement policies. The increasingly complicated legislative environment and demand of HEOR data by global reimbursement agencies is leading to rapid growth of HEOR industry.

For example, in the various European countries like Netherlands, UK etc. the success of new drugs is largely dependent on whether health insurance companies will reimburse the cost of the drug. The role of HEOR services is increasing in clinical R&D with use of HEOR in clinical trial design, Trial simulation modeling and Management of economic endpoints in clinical trials. The HEOR studies are used from initial phases of trials in order to access burden of disease and comparator trials along to demonstrate effectiveness of new drug.   Author: Harsh Parikh