Supplement: Cost-Effectiveness of Tolvaptan in Autosomal Dominant Polycystic Kidney Disease Table of Contents: Text: Mortality in End-Stage Renal Disease Modeling CKD Progression Model Validation Selected Model Assumptions Additional Sensitivity Analyses Probabilistic Sensitivity Analysis Modeling Tolvaptan Discontinuation Tables: Supplement Table 1: Annual Rate of Mortality in Patients with ESRD and ADPKD Supplement Table 2: Inputs for Probabilistic Sensitivity Analysis Supplement Table 3: Costs and Distributions for ESRD Figures: Supplement Figure 1: Survival by Age of Development of ESRD in Patients With ADPKD Supplement Figure 2: Differences in Progression to ESRD in a Population According to Within-Individual Variation in CKD Progression Supplement Figure 3: Modeled Progression to ESRD Under Different Assumptions About Within-Individual Variation in CKD Progression Supplement Figure 4: Estimated Cost of Healthy Year Supplement Figure 5: Quality of Life in Healthy Individuals With Age Supplement Figure 6: Cost-Effectiveness of Tolvaptan at Different Ages of Initiation Supplement Figure 7: Cost-Effectiveness of Tolvaptan at Different Starting GFRs Supplement Figure 8: Sensitivity Analysis – Cost-Effectiveness at Different Rates of Reduction in CKD Progression From Tolvaptan Supplement Figure 9: Sensitivity Analysis – Cost-Effectiveness if Tolvaptan Therapy Changes Quality of Life Supplement Figure 10: One-Way Sensitivity Analysis of Remaining Inputs in Women Supplement Figure 11: One-Way Sensitivity Analysis of Remaining Inputs in Men Supplement Figure 12: Probabilistic Sensitivity Analysis Results in Women (Base-Case Tolvaptan Price) Supplement Figure 13: Probabilistic Sensitivity Analysis Results in Men (Base-Case Tolvaptan Price) Supplement Figure 14: Probabilistic Sensitivity Analysis Results in Women (Tolvaptan Price at 10% of Base Case) Supplement Figure 15: Probabilistic Sensitivity Analysis Results in Men (Tolvaptan Price at 10% of Base Case) Mortality in End-Stage Renal Disease (ESRD) We define end-stage renal disease (ESRD) as an estimated glomerular filtration rate (eGFR) less than 15 ml/min/1.73m2. Once patients develop ESRD, mortality each year is a function of 1) age of development of ESRD; and 2) years since development of ESRD. Mortality rates were calculated from the United States Renal Data System (USRDS) report of all-cause mortality in the ESRD population, and include all ESRD patients in the United States. Consequently, the average mortality rate includes mortality from the mix of ESRD patient modalities (such as peritoneal dialysis or kidney transplant) at each age range in the United States. We derived mortality rates in patients with Autosomal Dominant Polycystic Kidney Disease (ADPKD) who develop ESRD using the following steps: 1) We calculated the mortality rate for all patients with ESRD for each age group at onset and time interval since development of ESRD reported by USRDS, assuming a constant hazard of death within each time interval. For example, USRDS publishes ESRD mortality in the 1st 3 years of ESRD, then mortality in the 1st 5 years of ESRD. To determine mortality rates in years 3 – 5, we divided survival to 5 years by survival to 3 years and calculated the associated annual rate of death. Annual rates were calculated using the most recent survival data available. 2) Using the method described in step 1, we also estimated mortality rates for all patients with ESRD and for all diabetics with ESRD for each reported time interval since ESRD onset. Because, in the USRDS report, mortality for diabetics with ESRD was not separated by age, in this step mortality rates for each time interval since development of ESRD (for all patients and for all diabetics) included an aggregate of all age groups. 3) For each interval since onset of ESRD, we calculated a mortality rate for all non-diabetics with ESRD. These mortality rates were derived from the aggregate (including all ages) mortality in all ESRD patients and in all diabetics with ESRD calculated in step 2) using the following equation: 𝑀𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦𝐸𝑆𝑅𝐷 = (𝑀𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦𝐷𝑀 ∗ 𝑃𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛𝐷𝑀 + 𝑀𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦𝑁𝑜𝑛𝐷𝑀 ∗ 𝑃𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛𝑁𝑜𝑛𝐷𝑀 ) Or, 𝑀𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦𝑁𝑜𝑛𝐷𝑀 = (𝑀𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦𝐸𝑆𝑅𝐷 − 𝑀𝑜𝑟𝑡𝑎𝑙𝑖𝑡𝑦𝐷𝑀 ∗ 𝑃𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛𝐷𝑀 ) ⁄𝑃𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛 𝑁𝑜𝑛𝐷𝑀 4) A mortality hazard comparing mortality in non-diabetics with ESRD to all patients with ESRD was calculated for each time interval since onset of ESRD by dividing mortality in non-diabetics by mortality for all ESRD patients. Because we used mortality rates for diabetics and all ESRD patients that included patients of all ages, these mortality hazards for non-diabetics were not age specific. 5) For each age group and interval since onset of ESRD, we estimated a mortality rate for non-diabetics by multiplying mortality for all ESRD patients (of a given age group and time since onset of ESRD derived from step 1) by the mortality hazard for non-diabetics. For this step, we assumed that the relative mortality difference between persons with and without diabetes does not differ in different ages of ESRD onset and is constant over the interval. 6) Finally, to estimate mortality in patients with ADPKD, we multiplied the mortality among non-diabetics for each age group and dialysis duration interval by 0.57 (the mortality hazard for ADPKD compared to non-diabetics with ESRD.(1) (See Supplement Table 1 and Supplement Figure 1 for detail on ESRD mortality estimates). An analysis of data provided by the USRDS for 2010 suggests only slight differences in age of ESRD onset between diabetics and non-diabetics. Specifically, diabetics are slightly older upon ESRD onset, although in non-diabetics a larger proportion of ESRD onset occurs over 75 years of age. Consequently, any potential bias due to aggregation of age groups is likely to be small. To account for a range of uncertainty due to potential differences between the composition s of ESRD patients of a given age group nationally and within modeled cohorts, we applied a range of +- 20% for mortality in ESRD in deterministic sensitivity analysis. Estimates for probabilistic sensitivity analysis were based from varying the proportion of transplant recipients and mix of patient co-morbidities in the general ESRD population (details available from authors upon request). Modeling CKD Progression In the base case, we assumed that patients had stage 2 CKD with an eGFR of 80 ml/min/1.73m2. Probability of progression from stages 2 to 3a, 3a to 3b, 3b to 4, and 4 to 5 (ESRD) were obtained from a separate microsimulation model implemented in SAS software. The mean rate of eGFR decline in the base case was obtained from the annual rate of GFR decline reported in the placebo group from the TEMPO trial.(2) The standard deviation of annual rate of eGFR decline in the population was obtained from an observational cohort of 229 patients with ADPKD that was not a part of the TEMPO trial. (3) Both cohort analyses reporting average rates of GFR decline were of limited duration. For example, the mean duration of follow-up in the TEMPO trial was 3 years, while the average period of follow-up in the observational cohort of patients with ADPKD was 7.8 years.(2, 3) There are few reports in the literature about within person variation in rate of CKD progression over a longer period of time. For example, if a person’s GFR declines by 3 ml/min/1.73m2 in one decade it is unknown whether they can be expected to progress faster, slower, or at the same rate over the next decade. The degree of correlation in rate of decline within individuals has a significant impact on timing and the proportion of a cohort ultimately progressing to more advanced stages of CKD and ESRD. Supplement Figure 2 illustrates that if individuals are assigned a single rate of GFR decline from a population distribution, progression to ESRD occurs slightly faster but ultimately in fewer people compared to a scenario where individuals are assigned a new rate of GFR decline every 6 years. When including these differences in our base case Markov model, the median time to development of ESRD is similar in the two scenarios, but the scenario where GFR decline is allowed to vary within individuals (i.e. they are assigned a new GFR decline from the population distribution every 6 years) leads to more patients progressing to ESRD before they die. (Supplement Figure 3) We chose to model CKD progression allowing for variation in GFR decline within individuals (every 6 years) because the eventual rates of progression to ESRD (80%-90%) are more consistent with observations in actual ADPKD populations(4) than the 60%-70% rate of progression to ESRD observed if there is no variability in CKD progression within patients. Model Validation To assess the face validity of our model, we compared the median ages of development of ESRD resulting from a hypothetical cohort from our model with median ages reported in two observational studies. For this analysis, we assumed an average annual decline in eGFR decline of 2.4 ml/min/1.73m2, which is what was reported from a subset of a large observational study of patients with ADPKD.(3) This average rate of eGFR decline is less than that which we used in our base case, since our base case is based on the population studied in the TEMPO trial which had a more rapid eGFR decline. Assuming an average rate of eGFR decline of 2.4 ml/min/1.73m2, we determined the median age of developing ESRD for a balanced cohort of 40 year old men and women with ADPKD whose starting eGFR was 80 ml/min/1.73m2. To enable us to compare our simulated estimate to the median ages of ESRD reported in the literature, we used the Kaplan-Meier method, where patients who die in each 3-month interval of our simulation are “censored”. We compared our median ages of ESRD to the weighted averages across men and women reported from a large observational study of patients in the United States and a large observational study of patients in Europe.(4, 5) The observational study of patients in Europe reported median renal survival separately for patients with PKD1 and PKD2 mutations. To calculate an average median renal survival for the ADPKD population, we weighted their reported median renal survivals by their observed prevalence of PKD1 and PKD2 mutations in the population (15% PKD2 and 85% PKD1). In our simulated cohort of 40 year-olds with ADPKD, a starting eGFR of 80 ml/min/1.73m2 and an average annual decline in eGFR of 2.4 ml/min/1.73m2, the median age of developing ESRD was 56 years-old. This was comparable to the average observed in the European Cohort (57 years-old), and was only slightly below the average observed in the cohort from the United States (59 years-old). The similarity between age of developing ESRD in our simulated cohort and that observed in two population studies supports the accuracy of our model. Selected Model Assumptions Cost of healthy year: Medical costs associated with the healthy state (i.e. no history of CKD) were obtained from published literature(6). To avoid bias associated with the categories used for cost reporting, we interpolated a smoothed cost curve. This was done with the following assumptions: 1) Costs increase linearly with age between reported categories 2) Costs reported for each age group represent the cost incurred at the median age of that cohort. Supplement Figure 4 illustrates a comparison of the reported and interpolated health care costs. Additional Cost of Stage 3 CKD, Stage 4 CKD, and ESRD: The incremental increase in medical costs due to stages 3 and 4 CKD were obtained from Smith et al.(7). They represent the incremental cost associated with CKD observed in a managed care population (Kaiser Permanente Northwest), after adjusting for demographic and comorbid conditions in a multivariate analysis. These costs were derived from departmental expenditures, administrative costs, indirect costs and joint costs multiplied by utilization volume. They are not specific to ADPKD. The cost of ESRD was obtained from the average paid per patient by Medicare in 2010 reported by the USRDS Atlas of ESRD. We used Medicare costs because it is the primary payer for ESRD. Because the USRDS Atlas also includes outpatient prescription drug costs for patients with and without prior kidney transplant, these were included in the cost estimates. Quality of life in a healthy year: Quality of life in the healthy population varied with sex and age due to the addition of comorbidities that occur with population aging. These age-based quality-adjusted life year (QALY) weight estimates were obtained from the Beaver Dam Health Outcomes Study (8) and were used as a baseline from which to add any additional quality of life decrements associated with chronic kidney disease and tolvaptan therapy. To allow for a continuous decrement of quality-of-life weights with aging, rather than step-wise, we made the following assumptions: 1) The QALY weights associated with a given age range was equal to the QALY weight for individuals at the median age within that range. 2) QALY weights decrease linearly between any two age ranges. From these assumptions, we interpolated QALYs for each age and sex. Supplement Figure 5 illustrates the interpolated vs. reported values. Quality of life based on CKD stage: Quality of life has been shown to decline due to burden of CKD. While the decline in quality of life is smaller in early-moderate stage 3 CKD, it becomes more significant as CKD advances. Estimates of quality of life in CKD came from several sources. Rizk et al. described the quality of life in patients with ADPKD, and found that in those with stage 2 CKD there was no difference in quality of life compared to the general population.(9) Consequently, we used the age-based quality of life in the general population for patients with ADPKD and stage 2 CKD. However, Rizk et al. did find decreased quality of life in more advanced CKD. Gorodetskaya et al. published “Health-related Quality of Life and Estimates of Utility in Chronic Kidney Disease” where they described the loss in quality-of-life associated with stages 3, 4, and 5 (ESRD) CKD(10) after adjusting for age, gender, and diabetes. Because our model further delineates between stages 3a and 3b, we estimated quality of life for these states. To do this we assumed: 1) Quality of life reported for stage 3 CKD represented the quality of life experienced in patients with an eGFR of 45 ml/min/1.73m2 (0.87). 2) Quality of life in stage 3 CKD declined in a linear fashion 3) Quality of life associated with stage 4 CKD (0.85) began at GFR of 30 (i.e. entry into stage 4) With these assumptions, we first calculated the average QALY weight associated with stage 3b CKD. This was the average of the QALY weight for patients with an eGFR of 30 ml/min/1.73m2 and those with an eGFR of 45 ml/min/1.73m2 𝑄𝐴𝐿𝑌 𝑤𝑒𝑖𝑔ℎ𝑡 𝑓𝑜𝑟 𝑠𝑡𝑎𝑔𝑒 3𝑏 = 0.86 = (0.85 + 0.87)⁄ 2 Based on this calculation, the QALY difference associated with a 15 ml/min/1.73m2 change in eGFR was 0.02. Consequently, the average QALY weight for patients with an eGFR of 60 ml/min/1.73m2 would be: 0.87 + 0.02 = 0.89, leading to an average QALY weight for stage 3a CKD of: 𝑄𝐴𝐿𝑌 𝑤𝑒𝑖𝑔ℎ𝑡 𝑓𝑜𝑟 𝑠𝑡𝑎𝑔𝑒 3𝑎 = 0.88 = (0.87 + 0.89)⁄ 2 Assuming patients surveyed by Gorodetskaya et al. were evenly distributed across stage 3 CKD, the QALY weights we use for CKD stages 3a and 3b yield an average stage 3 QALY weight equal to that reported by Gorodetskaya et al. Additionally, the calculated QALY weight for an eGFR of 60 ml/min/1.73m2 of 0.89 is comparable to the QALY weight reported by Gorodetskaya et al. for patients with an eGFR > 60 ml/min/1.73m2. Quality of life loss in patients with ESRD (0.77) was derived from the time tradeoff analysis by Gorodetskaya et al. (10) and was comparable to the range reported by Tengs et al. (0.50 to 0.84) (11) for various dialysis-related conditions. Quality of life for CKD stages 3a-4 and ESRD were not specific to ADPKD. The analysis adopted a societal perspective, considered only direct healthcare costs, and discounted all healthcare costs and benefits at 3% annually. We used TreeAge software to implement the decision model and to perform the deterministic sensitivity analyses as well as the probabilistic sensitivity analyses. Additional Sensitivity Analyses We conducted the following additional analyses to assess the model's sensitivity to underlying assumptions: Sensitivity to accelerating rate of eGFR decline: We examined how the cost-effectiveness of tolvaptan would change if eGFR accelerates over time rather than progressing linearly. We tested a 40 percent increase in the rate of eGFR decline upon progression to CKD stage 4. We conducted two versions of this analysis. In both versions, aside from eGFR decline, all other model inputs were identical to the base case. In the first version, we assumed that the decline in eGFR for CKD stages 2 through 3b were the same as in the base case (-3.7 ml/min/1.73m2 in patients not on tolvaptan and -2.72 ml/min/1.73m2 in patients treated with tolvaptan). After patients progress to CKD stage 4, we assumed a 40% increase in rate of CKD progression in both groups, with the new rates of decline being -5.18 ml/min/1.73m2 in patients not on tolvaptan and -3.81 ml/min/1.73m2 in patients on tolvaptan. In this scenario, the ICER for men and women pooled was $717,300/QALY gained, approximately 3.5% lower than the ICER in the base case. This is consistent with our finding (manuscript figure 3a) that tolvaptan is more cost-effective in patients whose CKD progresses more rapidly. In a second version of the accelerating CKD progression sensitivity analysis, we used model calibration to approximate a scenario where the average rates of decline in eGFR between the base case and the "acceleration" scenario are similar. To do this, we selected – through model calibration – rates of decline for CKD stages 2-3b and 4 (with the decline in stage 4 being 40% above the decline in stages 2-3b) that yielded a median age of progression to ESRD in men and women not receiving tolvaptan of 58, as was observed in the base case. The actual rates of eGFR decline obtained from this process were -3.5 ml/min/1.73m2 for stages 2-3b and -4.9 ml/min/1.73m2 for stage 4. This sensitivity analysis showed a pooled ICER in men and women of $741,700/QALY gained, which is only 0.3% different from the base case. Sensitivity to measurement of kidney disease progression: The TEMPO trial reports the effect of tolvaptan on kidney disease progression in the following two ways: 1) decline in eGFR, and; 2) change in the reciprocal of serum creatinine. The two results were comparable. Using decline in eGFR, the placebo group had an average annual decline in eGFR of -3.7 ml/min/1.73m2, while the tolvaptan group had an average annual decline of -2.72 ml/min/1.73m2. The decline in the treatment group was 0.98ml/min/1.73m2/year slower, reflecting a 26.5 percent reduction in the rate of kidney disease progression. Using the reciprocal of serum creatinine, the slope in the placebo group was -3.81 (mg per milliliter)-1, while the slope in the treatment group was -2.61 (mg per milliliter)-1. The decline in the treatment group was 1.2 (mg per milliliter)-1 per year slower, reflecting a 31.5 percent reduction in the rate of kidney disease progression. We chose to use the slope of eGFR decline in our primary analysis due to the familiarity of eGFR decline among clinicians. However, in a sensitivity analysis we examined how our findings change when using data from the reciprocal of serum creatinine. This analysis demonstrated an incremental cost-effectiveness ratio from tolvaptan therapy of $624,300/QALY gained in men and $586,700 per QALY gained in women. The ICER in a pooled cohort of men and women was $604,600 per QALY gained, which is approximately 19% less than the ICER from the base case. This difference is due to a combination of a slightly larger treatment effect and more rapid rate of baseline kidney disease progression in the reciprocal of serum creatinine group. Sensitivity to treatment effect heterogeneity: To determine how treatment effect heterogeneity might influence our results, we conducted a sensitivity analysis where we separated patients treated with tolvaptan into three equal sized populations. In the first, the mean decline in eGFR was –2.2 ml/min/1.73m2. In the second, the mean decline in eGFR was –2.72 ml/min/1.73m2. In the third, the mean decline in eGFR was – 3.2 ml/min/1.73m2. Standard deviations of eGFR declines in the 3 populations were assumed to be the same as in the baseline analysis. These 3 different “treatment effects” were chosen to reflect heterogeneity reported from TEMPO, while preserving the same overall mean treatment effect averaged across the three populations. The costs and QALYs gained in the three treatment groups were averaged together and then compared to the costs and QALYs gained in patients from the base case who were not placed on tolvaptan. This analysis found that tolvaptan was less cost effective after considering possible treatment effect heterogeneity. The average incremental cost-effectiveness ratio among the three different groups in a pooled population of men and women was $831,000 per QALY gained, which is 11.6% higher than the base case of $744,100 per QALY gained. Probabilistic Sensitivity Analysis Distributions for probabilistic sensitivity analysis were obtained – when possible – from uncertainty in estimates reported in the literature. (See Supplement Table 2) In instances where a wide range of estimates have been reported in the literature, the distribution variance was increased to reflect this. Assumptions regarding cost of ESRD were derived from national averages for different age groups published by the USRDS. The degree of uncertainty about ESRD costs for probabilistic sensitivity analysis was estimated by determining a range of costs associated with varying mixes of transplant recipients and privately versus publically insured recipients (upper 95%CI for cost assumed 10% fewer transplants and 10% more privately insured). This uncertainty is likely correlated across age groups. For instance, if there are 5% fewer transplant recipients and 5% fewer privately insured individuals in our modeled cohort compared to prevalent ESRD patients in the United States in one age group, a similar difference is likely to be present in the other age groups. However, because older patients are less likely to receive transplants and are less likely to be privately insured, the magnitude of the cost uncertainty (as a share of average ESRD costs) associated with a given percentage point reduction (or increase) in the proportion of patients with transplants or privately insured is smaller in older individuals. To account for this attenuation of uncertainty at older ages while maintaining a realistic correlation of uncertainty across age groups, we modeled ESRD cost uncertainty in the following manner: 1) We defined a single uncertainty distribution in terms of the percentage above/below the base case estimates of ESRD costs for 40-49 year-olds. In this case, a normal distribution with mean 1.0 and 95% confidence interval spanning 0.84-1.16. This corresponded to +/16% of the base case value for 40-49 year-olds. 2) We drew from the normal distribution defined in 1) and subtracted 1.0 to get the percentage difference from the base case 3) We then multiplied this percentage difference by age specific multipliers defined in Supplement Table 3, given the lower range of uncertainty in costs for older individuals with ESRD, especially those on Medicare. 4) We then added 1.0 to the number in 3) and multiplied by the base case age-specific ESRD costs, shown for convenience in Supplement Table 3 to produce a distribution of age-specific ESRD costs that were correlated across age groups and had lower uncertainty for older individuals with ESRD. Uncertainty about quality of life in different CKD stages is likely correlated. We took the following steps to incorporate this correlation in our probabilistic sensitivity analyses: 1) For each simulation, we drew QALY weight estimates in stage 3a CKD from the uncertainty distribution for that stage (described in supplement table 2). 2) We determined the number of standard deviations the stage 3a QALY weight estimate is away from the stage 3a mean QALY weight, preserving plus and minus signs for a deviation above or below the mean respectively. 3) For each QALY weight mean and distribution in more advanced CKD stages (i.e., 3b, 4, and 5), we applied the (standardized) deviation from the mean drawn from the stage 3a uncertainty distribution to calculate a QALY weight for the more advanced CKD stage. The following equation illustrates this calculation for determining the QALY weight in stage 4: QALYstage4 = MeanQALYstage4 +SDStage4*[(QALY3a – MeanQALY3a)/SD3a] 4) For any PSA sample where a QALY weight that was above 1.0, we truncated the weight at 1.0. Modeling Tolvaptan Discontinuation In an exploratory analysis we determined the cost-effectiveness of treatment with tolvaptan if some patients continue to stop taking tolvaptan after 3-years. For this analysis, we assumed that patients continue to withdrawal from treatment at the same annual rate as was observed in the TEMPO trial. The following methods were used prior to conducting this analysis. 1) In the TEMPO trial, 15.4% of patients randomized to tolvaptan discontinued therapy over a 3-year follow-up period. From this, we estimated an annual probability of tolvaptan discontinuation by assuming that the rate of discontinuation was constant throughout the trial using the following equation: 1 𝐴𝑛𝑛𝑢𝑎𝑙 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑑𝑖𝑠𝑐𝑜𝑛𝑡𝑖𝑛𝑢𝑎𝑡𝑖𝑜𝑛 = 1 − (1 − 0.154)(3) 2) Next, we estimated the annual decline in eGFR among patients who actually take tolvaptan. This additional step was required because, as discussed in the main text, our base case model uses the treatment effect reported for the cohort randomized to tolvaptan based on intention to treat. For the estimation, we assumed that patients not taking tolvaptan experience the rate of eGFR decline observed in the placebo cohort of the TEMPO trial (–3.70 ml/min/1.73m2/year). Assuming an annual probability of medication discontinuation of 5.4% (estimated from the step above), we used a builtin Excel Solver (distributed with Excel 2010) to identify the rate of eGFR decline among individuals taking tolvaptan that would yield an average decline in eGFR (including those who take tolvaptan and those who discontinue therapy) of –2.72 ml/min/1.73m2/year, observed in the treatment arm of the TEMPO trial. The solver function is illustrated below: 2.72 = [(1 − 𝑝𝐷𝑖𝑠𝑐) ∗ 𝑥 + (𝑝𝐷𝑖𝑠𝑐 ∗ 3.7)] + [(1 − 𝑝𝐷𝑖𝑠𝑐)2 ∗ 𝑥 + (𝑝𝐷𝑖𝑠𝑐 2 ∗ 3.7)] + [(1 − 𝑝𝐷𝑖𝑠𝑐)3 ∗ 𝑥 + (𝑝𝐷𝑖𝑠𝑐 3 ∗ 3.7)]⁄ 3 Where pDisc is the proportion of patients discontinuing tolvaptan per year. 2.72 is the average eGFR decline (in ml/min/1.73m2), and “x” is the rate of eGFR decline in patients taking tolvaptan. 3) Using the estimated annual probabilities of medication discontinuation, along with the annual rate of eGFR decline among those not taking tolvaptan and those taking the medication, we then undertook a separate microsimulation to determine the probability of progression to subsequent stages of CKD in each year in a hypothetical cohort of 100,000 individuals with an eGFR of 80 ml/min/1.73m2 who are initially on tolvaptan therapy but who discontinue therapy at a rate of 5.4% per year. These probabilities were entered into the Markov model for cohorts initiating tolvaptan therapy. 4) Finally, in the Markov model, costs among those in the tolvaptan treatment strategy were adjusted each year to reflect the proportion of patients in that year who remain on tolvaptan therapy. Because tolvaptan slows CKD progression, patients who remain on tolvaptan live longer (on average) than those who must discontinue treatment. Due to limitations in our model structure, we did not adjust tolvaptan costs to account for the increased proportion of survivors being on tolvaptan. Instead, we assumed that the medication costs for the cohort of patients in the tolvaptan treatment strategy are simply a function of the proportion of patients in that cohort who remain on treatment and those who discontinue treatment. This assumption would be expected to bias our findings in favor of tolvaptan being more cost-effective, since (from a cost standpoint) we underestimate the proportion of patients in later years who are actually on tolvaptan. Additionally, in this analysis we assumed that patients who discontinue tolvaptan due so at the beginning of a given year. This assumption also biases the discontinuation analysis in favor of tolvaptan. Supplement Table 1: Annual Rate of Mortality in Patients with ESRD and ADPKD Age at Dialysis Initiation 30-39 40-49 50-59 60-64 65-69 70-74 75-79 80-84 85+ 0 - 90 days 0.052 0.080 0.115 0.161 0.202 0.272 0.341 0.421 0.557 90 days - 1yr 0.041 0.055 0.081 0.105 0.133 0.169 0.219 0.261 0.347 1 - 2 yr 0.029 0.044 0.065 0.078 0.102 0.123 0.149 0.194 0.236 2 - 3 yr 0.031 0.040 0.062 0.082 0.098 0.123 0.150 0.188 0.248 3 - 5 yr 0.024 0.038 0.062 0.083 0.106 0.130 0.162 0.200 0.268 5 - 10 yr 0.020 0.033 0.055 0.082 0.110 0.138 0.185 0.220 0.260 Note: We assume that patients surviving beyond 10 years continue to experience the 5 – 10 year annual rate of mortality. Supplement Table 2: Inputs for Probabilistic Sensitivity Analysis Intervention Parameters: Percent reduction in rate of CKD progression from Tolvaptan - % (Targeted Mean Value) 26 16 37 beta Change in quality of life due to Tolvaptan - QALY 1.00 0.96 1.04 normal Cost of tolvaptan per month1 5760 4000 7000 gamma 0.154 0.10 0.22 beta Proportion of patients who discontinue tolvaptan Annual cost of laboratory tests and Natural History Parameters: monitoring1 Range (95% CI) Distribution 62.82 (+-20%) gamma Age based probability of death in healthy individuals (U.S. Life tables) (+-10%) normal Increased risk of death (CKD stage 3a) - hazard ratio 1.20 1.10 1.30 normal Increased risk of death (CKD stage 3b) - hazard ratio 1.80 1.70 1.90 normal Increased risk of death (CKD stage 4) - hazard ratio 3.20 3.00 3.40 normal (see supplement text) 0.77 1.27 lognormal Probability of death from ESRD (ml/min/1.73m 2/yr) Rate of CKD progression CKD-Related Quality of life assumptions 3.70 (Targeted Mean QALY) 3.00 4.40 Range (95% CI) normal QALY - CKD stage 3a† 0.88 0.78 0.98 normal QALY - CKD stage 3b† 0.86 0.74 0.98 normal QALY - CKD Stage 4† 0.85 0.72 0.98 normal 0.56 0.98 Range (95% CI) normal 1,833 1,493 2,201 gamma Annual added cost of Stage 3b CKD 4507 3,676 5,409 gamma Annual added cost of Stage 4 CKD 5,844 1,000 14,054 gamma ESRD† CKD-Related Cost assumptions1 Annual added cost of Stage 3a CKD Cost of ESRD 0.77 (Targeted Mean $) (see supplement text) All normal distributions are truncated to be greater than or equal to zero. 1 Costs are in 2010 USD. † Distributions for chronic kidney disease (CKD) and end-stage renal disease (ESRD) QALYs are truncated to be less than or equal to 1. After adjusting QALYs due to “change in quality of life due to tolvaptan” the final QALY is truncated to be less than or equal to 1. Supplement Table 3: Costs and Distributions for ESRD Age-Based Multiplier applied to the percentage difference drawn from a Age single uncertainty distribution in the Probabilistic Sensitivity Analysis1 30-39 1.00 40-49 1.00 50-59 0.85 60-64 0.74 65-69 0.46 70-74 0.30 75-79 0.18 80-84 0.10 85+ 0.07 1 Multiplied by the cost drawn from the probabilistic sensitivity analysis 2 Includes an estimate of Medicare Part D Costs ESRD Cost2 63,780 66,827 71,413 73,102 76,458 82,098 85,189 89,549 90,623 Supplement Figure 1: Survival by Age of Development of ESRD in Patients With ADPKD Supplement Figure 2: Differences in Progression to ESRD in a Population According to Within-Individual Variation in CKD Progression Note: Both simulations include an average decline in eGFR of –3.7 ml/min/1.73m2/year, with a population standard deviation of 2.8. Supplement Figure 3: Modeled Progression to ESRD Under Different Assumptions About Within-Individual Variation in CKD Progression Note: All simulations include an average decline in eGFR of –3.7 ml/min/1.73m2/year, with a population standard deviation of 2.8. Supplement Figure 4: Estimated Cost of Healthy Year Estimates based on reported costs in $2010 of $3,474 for people 50-64, 10,948 for ages 65-74, and 18,968 for 75+. Supplement Figure 5: Quality of Life in Healthy Individuals With Age Note: data derived from Beaver Dam Health Outcomes Study where for men aged 45-54, 55-64, 65-74, 75-84, and 84+, QALYs are: 0.0941, 0.874, 0.841, 0.838, 0.817 respectively. For women aged 45-54, 55-64, 65-74, 75-84, and 84+, QALYs are: 0.901, 0.871, 0.833, 0.792, 0.8 respectively. Supplement Figure 6: Cost-Effectiveness of Tolvaptan at Different Ages of Initiation Note: eGFR decline measured in ml/min/1.73m2. To examine whether the cost-effectiveness of tolvaptan in younger patients is affected by their likelihood of having higher eGFR, we simulated a cohort of 30 year-old men and women with a starting eGFR of 90 ml/min/1.73m2 (compared to 80 ml/min/1.73m2 in the base case). In men the incremental cost effectiveness ratio (ICER) was $754,500 per QALY gained, while in women it was $723,300 per QALY gained. In a pooled cohort of men and women the ICER was $738,400 per QALY gained, which is within 1% of the pooled ICER in the base case. This suggests that the ICER does not change significantly when tolvaptan is given to younger patients, even after considering their higher likelihood of less advanced kidney disease. Supplement Figure 7: Cost-Effectiveness of Tolvaptan at Different Starting GFRs Supplement Figure 8: Sensitivity Analysis – Cost-Effectiveness at Different Rates of Reduction in Kidney Disease Progression From Tolvaptan Note: The base case reduction in kidney disease progression was 26.5 percent. Supplement Figure 9: Sensitivity Analysis – Cost-Effectiveness if Tolvaptan Therapy Changes Quality of Life Supplement Figure 10: One-Way Sensitivity Analysis of Remaining Inputs in Women Supplement Figure 11: One-Way Sensitivity Analysis of Remaining Inputs in Men Supplement Figure 12: Probabilistic Sensitivity Analysis Results in Women (Base-Case Tolvaptan Price) Note: The incremental cost-effectiveness ratio is < $100,000 per quality-adjusted life year gained in less than 0.1% of simulations. Supplement Figure 13: Probabilistic Sensitivity Analysis Results in Men (Base-Case Tolvaptan Price) Note: The incremental cost-effectiveness ratio is < $100,000 per quality-adjusted life year gained in less than 0.1% of simulations. Supplement Figure 14: Probabilistic Sensitivity Analysis Results in Women (Tolvaptan Price at 10% of Base Case) Note: Incremental cost-effectiveness ratio (ICER) is less than $100,000 per quality-adjusted life year (QALY) gained in 97% of 10,000 simulations, and less than $50,000 per QALY gained in 79% of simulations. Supplement Figure 15: Probabilistic Sensitivity Analysis Results in Men (Tolvaptan Price at 10% of Base Case) Note: Incremental cost-effectiveness ratio (ICER) is less than $100,000 per quality-adjusted life year (QALY) gained in 96% of 10,000 simulations, and less than $50,000 per QALY gained in 78% of simulations. References 1. Perrone RD, Ruthazer R, Terrin NC. Survival after end-stage renal disease in autosomal dominant polycystic kidney disease: contribution of extrarenal complications to mortality. American Journal of Kidney Diseases. 2001;38(4):777-84. 2. Torres V, Chapman A, Devuyst O, Gansevoort R, Grantham J, Higashihara E, et al. Tolvaptan in Patients with Autosomal Dominant Polycystic Kidney Disease. N Engl J Med. 2012;Published Online Ahead or Print. 3. Fick-Brosnahan GM, Belz MM, McFann KK, Johnson AM, Schrier RW. Relationship between renal volume growth and renal function in autosomal dominant polycystic kidney disease: a longitudinal study. American Journal of Kidney Diseases. 2002;39(6):1127-34. 4. Schrier RW, McFann KK, Johnson AM. Epidemiological study of kidney survival in autosomal dominant polycystic kidney disease. Kidney International. 2003;63(2):678-85. 5. Hateboer N, v Dijk MA, Bogdanova N, Coto E, Saggar-Malik AK, San Millan JL, et al. Comparison of phenotypes of polycystic kidney disease types 1 and 2. European PKD1-PKD2 Study Group. Lancet. 1999;353(9147):103-7. 6. Meara E, White C, Cutler DM. Trends in medical spending by age, 1963-2000. Health Aff (Millwood). 2004;23(4):176-83. 7. D. H. Smith GAN, C. M. Gullion, E.S. Johnson, D. Keith. Predicting Costs Of Care In Chronic Kidney Disease: The Role Of Comorbid Conditions. The Internet Journal of Nephrology. 2007;4(1). 8. Fryback DG, Dasbach EJ, Klein R, Klein BE, Dorn N, Peterson K, et al. The Beaver Dam Health Outcomes Study: initial catalog of health-state quality factors. Med Decis Making. 1993;13(2):89-102. 9. Rizk D, Jurkovitz C, Veledar E, Bagby S, Baumgarten DA, Rahbari-Oskoui F, et al. Quality of life in autosomal dominant polycystic kidney disease patients not yet on dialysis. Clinical Journal of The American Society of Nephrology: CJASN. 2009;4(3):560-6. 10. Gorodetskaya I, Zenios S, McCulloch CE, Bostrom A, Hsu CY, Bindman AB, et al. Health-related quality of life and estimates of utility in chronic kidney disease. Kidney Int. 2005;68(6):2801-8. 11. Tengs TO, Wallace A. One thousand health-related quality-of-life estimates. Medical Care. 2000;38(6):583-637.