HTA-challenges in the Medical Device Industry HTA-course, Danish Society for Biopharmaceutical Statistics, May 26 2014 Jeppe Sørensen, International Health Economist Agenda 1. Introduction to Coloplast 2. HTA challenges for medical devices – same or different? • Product characteristics • Licensing requirements 3. Country specific approaches to HTAs and medical devices – examples and implications for evidence 4. How does Coloplast respond to the challenges? Value based argumentation • “Traditional” cost-effectiveness analysis • Disease specific PROMs • Discreet choice experiments 1. INTRODUCTION Coloplast’s business areas, typical users and products Ostomy Care Continence Care Urology Care Wound & Skin Care People who have had their intestine redirected to an opening in the abdominal wall People in need of bladder or bowel management People with dysfunctional urinary and reproductive systems People with difficult-to-heal wounds SenSura® Mio Launched in 2011 SpeediCath® Compact Set Launched in 2012 Altis® Single Incision sling Launched in 2012 New Biatain® Silicone Launched in 2013 1. INTRODUCTION Business areas 2012/13 Ostomy Care #1 35-40% global position global market share 42% 4.8 of Coloplast revenue billion DKK annual revenue 7% Innovative solutions organic growth rate 1. INTRODUCTION Business areas 2012/13 Continence Care #1 40-45% global position global market share 35% 4.1 of Coloplast revenue billion DKK annual revenue 7% Award winning Products organic growth rate 2. MEDICAL DEVICES – SAME OR DIFFERENT? Product characteristics of medical devices influence conditions for establishing evidence Reasons why devices are different in relation to RCTs 1. Difficult/impossible to do blinded studies with devices 2. No “steady state” period: Frequent product modifications and 3. Device-Operator Interactions: Efficacy depends on how it is used and RCT risks demonstrating experience rather than differences Source: Drummond, M., Griffin, A. and Tarricone, R. (2009), Economic Evaluation for Devices and Drugs—Same or Different?. Value in Health, 12: 402–404 2. MEDICAL DEVICES – SAME OR DIFFERENT? Different licensing requirements compared to drugs mean different conditions for producing evidence Pharma • 10-15 years development and clinical trials aiming at a strong regulatory file for FDA/EMA approval Medical devices • Often a CE-mark is the only licensing requirement for disposable medical devices • 2-3 years from idea to market • Fewer and smaller trials 2. MEDICAL DEVICES – SAME OR DIFFERENT? Example: Evidence on hydrophilic coated vs. uncoated catheters and occurrence of UTIs Number of patients Institutional data is the best measure for a difference in UTI rates, however it overestimates the real life UTI rates. UTI / yr Uncoated HCIC Uncoated HCIC De Ridder 2005 61 60 6.60 5.28 Cardenas 2011 114 105 8.18 6.47 UTI reduction 21 % Number of patients Patients UTI rates in community is the most relevant measure for real life picture of the UTI rate. Cardenas 2009 UTI reduction UTI / yr Uncoated HCIC Uncoated HCIC 23 22 1.65 0.77 53 % 3. APPROACHES TO HTA Very different funding systems and HTA-requirements – two examples 3. APPROACHES TO HTA Example: France – reimbursement system & characteristics Community Reimbursement system HAS: The French National Authority for Health evaluates reimbursement in 2 steps (outside category) 1st step: Medical evaluation 2nd step: Economic evaluation TECHNICAL & MEDICAL EVALUATION ECONOMICAL EVALUATION Committee 1 (CEPP/ CNEDiMTS) Committee 2 (CEPS) Key characteristics • National categories with fixed prices: OC: 17 sub-categories IC: 3 sub-categories (CD: 8 sub-categories) WC: sub-categories based on size Application time in category: < 1 week (only need safety registration in Afssaps) MEDICAL SERVICE : YES/ NO MEDICAL SERVICE IMPROVEMENT (MSI): REIMBURSEMENT PRICE -> LPPR 5 grades I. II. III. IV. V. Major improvement Important improvement Moderate improvement Minor improvement No improvement Decision-makers = physicians Spotlight clinical data → high price → premium price → price level ? → parity/ low price → No reimbursement / low price Cost-minimisation politic for Healthcare Spotlight budget impact and EU prices/ reimbursement Clinical data not required No international reference pricing Review every 5th year (longer in reality) • Brand specific reimbursement possible Application time: 6 – 12+ months Clinical data required International reference pricing Review every 5th year (incl reference price) • Co-payment: none for chronic care (OC/ CC) 35% non Chronics (but 90% insured) 3. APPROACHES TO HTA The Coloplast payer landscape – differs across markets ? Reimbursement/ Value based Reimbursement/ Procurement/ 100 %CoFixed categories Tenders payment Pricing / feature based Performance/value based Page 11 4. VALUE BASED ARGUMENTATION Example on how health economics is used for value argumentation in relation to intermittent catheterization Published article show that by using a hydrophilic coated catheter, a UTI reduction of 21 % can be obtained Urologist and rehab specialist panel Health economic analysis Findings Hydrophilic coated catheters are 4% more expensive than uncoated catheters HCIC increase QALY by 5%, increase additional life years by Consolidated possible adverse events Page 12 4% and decrease the risk of UTI by 16 % with a lifetime perspective Chronic Urinary Retention – HCIC vs. uncoated No/minor renal impairment No UTI Major renal impairment UTI responding to initial treatment No UTI UTI not responding to initial treatment No UTI UTI responding to initial treatment UTI not responding to initial treatment No presence of treatment-requiring urinary tract infections Presence of treatment-requiring urinary tract infections that responds well to initial treatment - including 7% multiple drug resistance. • Monthly risk at IC: 32,6% (Cindolo 2004, Cardenas 2009 + 2011, De Ridder 2005, Giannantoni 2001, Duffy 1995 & King 1992) • Risk reductions HCIC vs. uncoated: 10% (meta analysis) 21% (Cardenas 2011 – controlled part), 53% (Cardenas 2009) UTI not responding to initial treatment UTI responding to initial treatment Including cases leading to epididymitis, pyelonephritis and urosepsis. • Monthly risk: 0,320% (Chai 1995, Perrouin-Verbe 1995, Weld No/minor renal impairment Major renal impairment Chronic kidney failure 2000) • Risk reduction HCIC vs. uncoated: 10% (Expert assumption) Background adverse events Bladder stones Kidney stones Urethral damage Page 13 0.117% 0.117% 0.189% (Perrouin-Verbe 1995, Chai 1995) (assumed the same as bladder stones) (Perrouin-Verbe 1995, Chai 1995 and Weld 2000) Chronic kidney failure No UTI UTI responding to initial treatment UTI not responding to initial treatment No or minor renal impairment requiring dietary changes only Careful monitoring is needed. • Monthly risk : 0,020% (1/4 of upper tract abnormalities, Weld 2000) Dialysis or renal replacement therapy needed. • Monthly risk : 0,0035% (UK renal registry, Lawrenson 2001) 4. VALUE BASED ARGUMENTATION Full overview of the CEM CUR Model Data input Modelling No/minor renal impairment Major renal impairment Output Chronic kidney failure Results Urinary Tract Infections No UTI UTI responding to initial treatment Adverse Events Cost Data Page 14 UTI not responding to initial treatment 4. VALUE BASED ARGUMENTATION Output Data input Modelling Output Mean cost Mean QALY Mean LYG UTIs Adverse Events Page 15 ICER Cost-effectiveness ratio depends on local costing data 4. VALUE BASED ARGUMENTATION Limitations in conventional CUAs in relation to effects of medical devices – defining and measuring QOL Page 16 4. VALUE BASED ARGUMENTATION Example: SpeediCath Compact and quality of life QoL Intermittent Self-Catherisation Questionnaire (ISC-Q) HRQoL SF-36 EQ-5D • Validated instrument accepted for publication (Pinder 2013) • Total score 0-100 based on 24 questions in 4 domains: • Ease of use, convenience, discreteness and psychosocial wellbeing Disease QoL Qualiveen Compact trial results on quality of life (ISC-Q) C-IQoL Compact: 17 point improvement out of 100 ISC-Q Randomised controlled trial of 118 neurogenic users from 5 countries using Compact 6 weeks vs. non-Compact for 6 weeks (Chartier-Kastler 2013). But what is better quality of life worth ? Page 17 4. VALUE BASED ARGUMENTATION One way is to base willingness to pay on a discreet choice experiment Attribute Catheter A Catheter B Apply gel to the catheter to lubricate it The catheter is pre-coated with lubricant Convenience Catheter coating and needs no preparation Risk of infection No urinary tract infections You will have 1 urinary tract infection Ease of insertion Moderately easy to insert Difficult to insert £XX per month £XX per month Willingness to pay Which catheter do you prefer? Page 18 4. VALUE BASED ARGUMENTATION Example of WTP results for specific catheter attributes • WTP puts a value on the benefit of certain features to the users • Can be used to link an improvement in quality of life to monetary units • In Coloplast WTP is used to describe user-perceived value of various aspects (i.e. coating, risk of infection, convenience etc.) • A regular cost-minimisation analysis only counts costs – WTP counts the value for the users Page 19 Attribute Level £/Cath. Convenience Small and compact. Moderately sized. Not compact and can be bulky. XX XX - Catheter coating Pre-coated, needs no preparation. Add water and wait ~30 seconds. Apply gel. XX XX - Risk of infection UTI next 12 months: No urinary tract infections 1 urinary tract infection 3 urinary tract infections XX XX - Ease of insertion Easy Moderately easy Difficult XX XX - 4. VALUE BASED ARGUMENTATION Existence of evidence within the field of stoma care is very limited Stoma appliance trials registered at ClinicalTrials.gov Details: Sponsor Trials RCT Blinded Finished Coloplast 15 13 0 14 Subjects in trials: <6,000 in total – 2 trials accounts for ~5,000 ConvaTec 7 1 0 5 25 trials registered – 15 by Coloplast Hollister 2 0 0 2 15 RCTs registered – 13 by Coloplast Independent 1 1 0 1 Total trials 25 15 0 22 0 blinded trials registered – Not possible to blind stoma appliance trials International perspective on evidence gap Use of Willingness-to-pay study Use of less valid study designs The DialogueStudy - >3,000 subjects included - Improved Quality of Life Combining willingness-to-pay study with costminimisation analysis (niklas.hedberg@tlv.se) 10 May 2013 Assessment of SAS premium evidence Page 20 - Improved leakage level - Improved skin condition Half of all patient ever studied in stoma care Any questions or comments ? Page 21 Jeppe Sørensen International Health Economist, Coloplast dkjsor@coloplast.com Page 22 22 May, 2014 dksfjsldkj Page 23