Otsuka Pharmaceutical & Lundbeck Pharma are global pharmaceutical companies developing medicine for the treatment of schizophrenia and other brain diseases. Today, people diagnosed with schizophrenia in Denmark are provided with medication free of charge for the treatment of the disease for the first two years after diagnosis.
Client challenges
In general, one can observe positive treatment effects from regular medication on the quality of life of people diagnosed with schizophrenia. Based on this experience our clients wanted to promote an expansion of the current scheme to (i) a period of seven years, (ii) until the 40th year of life and (iii) for a lifetime.
Our approach and findings
HBS Economics was commissioned to evaluate the cost of extending the period in which patients are provided with medication free of charge. Our work included the following activities:
- Collecting data on incidence and prevalence of schizophrenia in Denmark since 1998
- Determine the patient’s consumption of medication since 1998
- Assessing the governmental costs from expanding the current scheme
- Presenting the findings to leading medical scientists and patient organizations
- Assistance in reaching out to politicians and government authorities
Benefits achieved for our client
Otsuka Pharmaceutical & Lundbeck Pharma were able to document that expanding the current scheme of medication free of charge has a limited effect on public finances. Our findings and advice have been used to address the Danish minister of Health. The proposal is currently being considered by the authorities.