Abstracts

Evaluate the value of a new anti-epileptic add-on drug, namely levetiracetam (LEV) and compare the theoretical point of consumption estimate obtained through the willingness to pay (WTP) method to the actual LEV wholesaler price in Quebec. The WTP approach measures the resources that individuals are willing and able to give up for a reduction in the probability of encountering a hazard that will compromise their health. The WTP methodology might be useful in economic analysis of new specific treatment for epilepsy like levetiracetam. Consumers[rsquo] willingness to pay can be expressed as a point of consumption context and an optimal pricing policy can be scheduled and validated. The data originate from a survey of 1484 randomly selected households. The study area of this research was the province of Quebec (Canada). The survey yielded 727 (52%) usable interviews about WTP for a new anti-epileptic treatment. Respondents were assigned randomly to four subgroups, with members of each sub-groups being asked to respond to a different set of bids (in Canadian Dollars - CAD). The designed questionnaire and the set of bids used were derived from expert opinion and based on LEV characteristics and profile. A recent methodological development within the dichotomous choice (DC) method - called Double-Bounded Dichotomous Choice Contingent Valuation (DBDC-CV) model - was used for analysis. A variety of models was fit by maximum likelihood, using different cumulative distribution functions, with one or more covariates (age, gender, occupation, education and income). Goodness-of-fit measures were estimated to assess how well the models fitted the observed data. By considering only the range of feasible values, normalized truncated measures for the WTP were calculated from the estimated models. From the 727 usable interviews, 669 respondents answered to the four possible response pairs. The odds-change log-logistic model for the true WTP provided a good fit to the data. The estimates and the width of confidence intervals indicated a normalized truncated mean of 10.76 CAD (Bootstrap 95% CI: 9.97, 11.59) for the point of consumption estimate. The socio-demographic characteristics appeared non-significant on the basis of likelihood ratio tests. After model checking and examination of the impact of socio-demographic variables, it was concluded that a value of 10.76 CAD can be considered as the daily amount that an individual is willing to pay for a new antiepileptic drug having LEV characteristics. The main result indicates that the value for the normalized truncated mean of the willingness to pay is much higher than the average wholesaler price for LEV (estimated 5.46 CAD for 1500 mg daily) suggesting that the actual market price requested for levetiracetam is valid in the context of Quebec. (Supported by UCB Pharma SA)