Focus Area 2

Economic Evaluation & Pharmacoeconomics

Cost-effectiveness analysis, budget-impact modelling, pharmaceutical pricing, and value-of-medicines assessment to improve access and affordability in Ethiopia.

Overview

Making the Case for Value

Economic evaluation provides the evidence base for decisions about which medicines, vaccines, and health interventions represent good value for money — a vital question for any health system, but especially for Ethiopia where healthcare resources are finite and the burden of disease is high.

Pharmacoeconomics applies economic principles to pharmaceutical products, examining not just the price of a medicine but its full cost-effectiveness relative to alternatives. This discipline underpins rational pharmaceutical pricing policy, formulary decisions, and reimbursement frameworks.

The chapter builds Ethiopian capacity in cost-effectiveness modelling, cost-of-illness studies, budget impact analysis, and value-based pricing — all grounded in the Ethiopian health system context.

Key Methods We Work With

  • Cost-effectiveness analysis (CEA)
  • Cost-utility analysis (CUA) and QALYs
  • Budget impact analysis (BIA)
  • Cost-of-illness and burden-of-disease studies
  • Value-of-information analysis
  • Pharmaceutical pricing and reimbursement frameworks
  • Decision-analytic modelling (Markov, decision trees)
Our Work

Activities in This Focus Area

Short Course: Risk-Sharing Agreements

The chapter delivered a short course on risk-sharing agreements — a key pharmacoeconomic tool linking medicines reimbursement to real-world outcomes evidence.

Pharmaceutical Pricing & Access Workshop

Planned workshops on pharmaceutical pricing and market-access frameworks for the Ethiopian context — equipping practitioners to engage with pricing policy.

Economic Modelling Research

Supporting members to develop and publish cost-effectiveness models and pharmacoeconomic analyses relevant to the Ethiopian health system, in collaboration with CORE.

Build Your Skills in Economic Evaluation

Join the chapter for access to training, research opportunities, and a community of practice.