Tuesday, May 11, 2004 - 12:00 PM
4872

Engineering the Economic Value of Two Pediatric Combination Vaccines

Sheldon H. Jacobson, Department of Mechanical and Industrial Engineering, University of Illinois, Urbana, IL, USA and Edward C. Sewell, Department of Mathematics and Statistics, Southern Illinois University, Edwardsville, IL, USA.


BACKGROUND:
An operations research vaccine selection algorithm was developed for vaccine purchasers to assemble formularies that satisfy the immunization schedule at the lowest overall cost to payers or to society. It takes into account distinguishing features of economic consequence among competing vaccines. This algorithm is used to compare the economic value two competing pentavalent combination vaccines.

OBJECTIVE:
Demonstrate how the vaccine selection algorithm can be used to compare he economic value of two pentavalent combination vaccines.

METHOD:
The vaccine selection algorithm was reverse engineered to determine the appropriate public sector price for the each pentavalent combination vaccine, both independently and head-to-head, based on March 2003 prices for all pediatric vaccines.

RESULT:
The value of each combination vaccine depends on the assigned cost of an injection and the number of doses of the vaccine that are in the lowest overall cost formulary. The current government price of $32.75 for the currently available pentavalent combination vaccine makes it very difficult for any other combination vaccine to penetrate the market.

CONCLUSION:
Reverse engineering the vaccine selection algorithm provides a rational tool for assessing the appropriate price for the Hepatitis B - Haemophilus Influenzae Type B combination vaccine.

LEARNING OBJECTIVES:
Understand how features of different vaccines impact he economic value of such products. Understand how the reverse engineering approach can be used to price pediatric combination vaccines.


Web Page: www.staff.uiuc.edu/~shj/shj.html