5. Cost-Effective Analysis
Since the end game of our project is to develop a partnership with the national screening program, we need to evaluate the proposed pharmacoeconomic model of our product. Cost-effectiveness analysis of a proposed CRC method is important to make a decision at the national level. A method is considered as “dominant” (cost-saving) when it gives a higher outcome with lower cost compared to the other method. While it is considered as “dominated” when it gives a lower outcome with higher cost [7]. When a method gives a higher outcome with higher cost, or vice versa, the cost-effectivity must be measured with incremental cost-effectiveness ratio (ICER). A method is considered as cost-effective if the ICER is below the threshold. According to WHO (2012) [8], for middle income countries, the recommended threshold is 1 to 3 times of gross domestic product (GDP) per capita. Indonesia GDP per capita is IDR 59.3 millions [9], it means that a screening method with ICER below 59.3 millions IDR will be considered as cost-effective.
To measure the outcome of colorectal cancer screening methods, Dr. apt. Dwi Endarti, M.Sc. suggested us to use sensitivity and specificity as the parameters of effectivity. Sensitivity and specificity of ColDBlu was estimated by averaging the sensitivity and the specificity from previous research [10,11,12]. Meanwhile, FOBT, FIT, sigmoidoscopy, and colonoscopy sensitivity and specificity were obtained from Knudsen et al. [13,14].
We also tried to estimate the cost of the ColDBlue test kit based on our discussion with Prof. Dr. Ir. Endang Sutriswati Rahayu, M.S., a probiotic expert with experience in developing probiotic products into industrial scale. She showed us the formula she used to calculate her probiotic product and since our product is manufactured the same way as probiotic, we used the same formula as her. However, since her product now has been adapted to the industry, we can’t publish the detailed formula we used. In summary, the cost of manufacturing a product can be divided into 4 different categories. Direct material cost represents all the material cost, Direct labor represents the labor price needed, manufacturing overheads represent all indirect cost needed for the manufacturing including the rent, taxes, and machinery, lastly is profit to make sure the project will be sustainable to the manufacturer. We propose a total of 1000 capsules per batch based on Ms. Endang’s experience (Table 1).
| Cost/Batch | Cost/Product |
Direct material cost | Rp2,000,000 | Rp2,000 |
Direct labour | Rp5,000,000 | Rp5,000 |
Manufacturing overheads | Rp5,000,000 | Rp5,000 |
Profit | Rp2,500,000 | Rp2,500 |
Total cost | | Rp14,500 |
Table 1. Estimated cost of ColDBlue test kit
Cost-effectiveness of ColDBlu was analyzed by comparing the cost and outcome (sensitivity or specificity) of ColDBlu with other screening methods that were currently used in Indonesia. Cost of the screening methods were calculated in patient perspective (IDR), considering direct medical costs (kit price and medical provider cost), direct non medical cost (transportation cost), and indirect cost (productivity loss). From the calculation, ColDBlu is considered as cost-saving compared to the other screening methods (FOBT, FIT, sigmoidoscopy, and colonoscopy) because it gives higher sensitivity with lower cost. However, the cost-effectiveness of ColDBlu to obtain additional specificity compared to other methods needs to be calculated by ICER because it costs lower but also gives lower specificity.
Table 2. Cost and outcome of ColDBlu and colorectal cancer screening methods in Indonesia
ICER was measured by dividing the incremental cost by incremental outcome (specificity) of ColDBlu and other methods separately. The measured ICER (cost per additional specificity gained) of ColDBlu compare to FOBT, FIT, sigmoidoscopy, and colonoscopy were IDR 364,424; 80,858; 3,558,361; and 5,623,464 respectively. Since the ICERs were below IDR 59.3 millions (GDP of Indonesia), ColDBlu is considered as cost-effective. Hence, ColDBlu can be implemented in the national setting as an affordable colorectal cancer screening method in Indonesia, especially the rural areas.
Table 3. ICER of ColDBlu to other applied colorectal cancer screening methods in Indonesia
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