South Africa Regional Chapter Annual Report 2010

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South Africa Regional Chapter Annual Report 2010 TO: Board of Directors International Society for Pharmacoeconomics and Outcomes Research 3100 Princeton Pike, Suite 3E Lawrenceville, NJ 08648 USA PREPARED BY: Shelley McGee (B.Sc; B. Pharm; PG Dip Health Economics) Health Economics, Clinical Policy Unit; Discovery Health Sandton, South Africa Tel: +27 11 529 2149 Email: shelleym@discovery.co.za Background: The South Africa Regional Chapter was approved in June 2007. The chapter has 99 members. The current Executive Board of the South Africa Regional Chapter is comprised of the following people: President Secretary & Treasurer Jacques Snyman (MB.ChB; M.Pharm Med; MD) Product Development Director Agility Global Health Solutions Pretoria, South Africa Shelley McGee (B.Sc; B. Pharm; PG Dip Health Economics) Health Economics, Clinical Policy Unit; Discovery Health Sandton, South Africa Other Board members 2010 Mr. Mark Brand (MBA (Strategic marketing)) Strategy Consultant Healthcare Technology, Brandtech, Johannesburg Dr. Jacqui Miot (B. Pharm, Ph.D) Senior lecturer, Department of Clinical Epidemiology, Pretoria University Ms. Kirti Narsai (MSc. Pharm; MBA) Head of Scientific & Regulatory Affairs PIASA (Pharmaceutical Industry Association of South Africa)

Mr. Huib Scheijbeler (MSc. Pharmaceutical Sciences) Pricing and Reimbursement manager, Pfizer South Africa Mr. Joubert Krugel (B.Pharm; MBA) Director: Market Access. Johnson & Johnson Medical (Pty) At the annual general meeting in September 2010, we were honoured with the addition of three new board members: Mr. Davide Casalvolone (B.Pharm; B.Sc (Hons); M. Health Ec. & Pharmacoeconomics). Director: Market Access. Bristol Myers Squibb, South Africa Mr. Paul la Cock (BSc (Hons) Math. Stats and Act Sci; PG dip- Healthcare Funding) Independent Consulting Actuary Ms. Gerdi Strydom (B. Pharm, M.Pharm, MBA) Head Outcomes Research and Access: Pfizer laboratories Unfortunately, at the end of October, we lost Huib Scheijbeler from the board as he returned home to the Netherlands. For more information on the Country Regional Chapter, please visit the ISPOR Regional Chapter website at http://www.ispor.org/regional_chapters/southafrica/index.asp Enclosure: ISPOR South Africa Regional Chapter Annual Report 2010 2

ISPOR South Africa Regional Chapter Annual Report BY ACTIVTY The South Africa Chapter has successfully developed or facilitated the following activities: 1. SCIENTIFIC/EDUCATIONAL ACTIVITIES April 2010: TreeAge Basic Training Course ISPOR SA hosted Dominic Tilden from Thema Consulting Pty Ltd in Sydney, Australia to present two 2-day basic training sessions on the use and utility of the TreeAge software package for economic modeling. A total of 27 attendees learned the basics using the package and the construction of basic and more complex models. September 2010: Launch of the ISPOR SA Education Working Group During the 2010 local ISPOR Conference, the Board launched the ISPOR SA Education Working Group, with the intention of identifying and addressing the training and education needs of the membership and other stakeholders in the process of introduction and application of pharmaco- and health economic principles. September 2010: Short Course on Epidemiology in Health Economics As part of the programme offered at the annual ISPOR South Africa Conference, Dr. Annette Gerritsen of Epi-Result, in South Africa, presented a half-day course on the relevance and application of epidemiological studies and data in health economic evaluation. The short course was attended by 17 people and feedback on the content and validity for application was extremely positive. January, May, August, December 2010 Four issues of the ISPOR South Africa Newsletter were published and distributed to the membership as well as non members. The newsletters serve to highlight some of the activities of ISPOR South Africa, as well as drawing attention to some significant developments in health economics and outcomes research worldwide, and communicating the contents of other ISPOR conference which members have the opportunity of attending. February: FDA publication of guidance for Patient Reported Outcomes measures May: ISPOR SA s meeting with the South African Department of Health; Alternative reimbursement Working Group. August: Summary of ISPOR International in Atlanta; promotion of ISPOR South Africa Congress. December: Summary of ISPOR South Africa Congress 2. POLICY-RELATED ACTIVITIES March 2010: Meeting with the National Department of Health The ISPOR SA Board met with the Pharmaceutical Economic Evaluations Unit of the Department of Health, in order to discuss opportunities for cooperation in areas of skills development and education, in pharmacoeconomics, health economics and health technology 3

assessment. March 2010: Launch of the Alternative Reimbursement Structures Working Group South Africa is in the unique situation whereby legislation prohibits discounting, rebates or incentives of any kind in relation to registered pharmaceutical products, whereas devices remain largely unregulated. Several submissions have been made to the Department of Health to allow exceptions to the current regulations under certain circumstances eg. For high cost pharmaceuticals, but these have yet to be addressed by the Department and their view on such proposals remains obscure. The intention behind the working group is to rally an industry perspective on the issues and present this to the Department of Health. September 2010: Second Meeting of the Alternative Reimbursement Working Group This formed part of the agenda of the annual conference and working group leader, Mark Brand presented on some of ISPOR SA s activities around this working group as well as the way forward. May 2010: Proposal to Department of Health ISPOR SA Board submitted a proposal for co-operation and assistance to the Department of Health based on discussions and conclusions of meeting in March. ISPOR SA s Constitution and Vision and Mission and the intention behind our engagement with the Department of Health was outlined. We await feedback for more consultation with the Department. November 2010: Proposal for assistance to the National Council for Medical Schemes The National Council for Medical Schemes, the regulator of the private Health Insurance Industry in South Africa, is in the process of reviewing the current structure of the Prescribed Minimum Benefits (PMBs), for which medical schemes are obliged to pay in full. The review includes an attempt to address the cost effectiveness of treatments included in and proposed for inclusion in the construct of the prescribed minimum benefit package. ISPOR SA commented in a letter to the Head of the Project team regarding the principles and methodologies the Council has proposed for the inclusion of cost effectiveness in the review. The council has responded positively to our comments and suggestions and a meeting is due to be set up in early 2011. December 2010: Department of Health Publication of Draft Guidelines for Pharmacoecononomic Submissions After a wait of several years, the initial draft of the National guidelines for Pharmacoeconomic submission was published in December. One of the ISPOR SA Board members (Jacqui Miot) was integrally involved in drawing up and finalizing the guidelines. Comments and representation are for three months following the publication, and ISPOR SA will be submitting our comments on the guidelines and the intended process. 4

3. CONFERENCES & CHAPTER MEETINGS September 2010: 3 rd Annual ISPOR SA Conference and ISPOR/PCMA Short Courses. The Annual South African Conference was held at the Pfizer South Africa Offices, and was attended by some eighty delegates, presenters and guests. The sessions and presentations were geared towards addressing issues in both the Pharmaceutical and Device technology sectors, and encompassed a variety of topics. Professor Paul Trueman, from Brunel University, UK, was our keynote guest speaker, and topics for the two plenary sessions held were International Trends in Health Technology Assessments and the recent challenges and limitations faced in other countries; and the need and usefulness of Health Economic Modelling early in the product development cycle. The ISPOR SA Newsletter 4 for 2010 addressed all the Conference Proceedings in detail and is available on the Chapter webpage at http://www.ispor.org/regional_chapters/southafrica/documents/ispor-sa-newsletter-4-201 0.pdf November 2010 ISPOR European Conference: 8 members of ISPOR South Africa were fortunate to attend the ISPOR Europe Conference in Prague in November. Martie Lubbe of North West University, Potchefstroom, and an ISPOR SA member took part in a number of submissions and poster presentations at the conference. 4. OTHER June 2010 to current Mark Brand commenced work on the South Africa Health Care Systems Roadmap for the ISPOR International Working Group, and the website. First draft has been circulated to South Africa Chapter board members for comment. Numerous legislation and policy changes during 2010 are set to impact this. September 2010: Presentation at the Lilly Funder Forum At the Lilly Funder forum sponsored for Private Health Care Insurers, Shelley McGee was invited to present an overview of Health Technology Assessment and the potentials and challenges to its application on a broader scale within the private insurance funding sector of South Africa. Generally, understanding of, and capacity in HTA is low within private funding organizations in the country, and we took the opportunity where a number of decision-makers were assembled to introduce and address some of the key issues. October 2010: Presentation at the Institute for Health Risk Managers Symposium: Health Technology Assessment in South Africa. Shelley McGee joined representatives from the Department of Health and SAMED (the South African Medical Device industry association) in presentations to delegates about Health Technology Assessment and the necessary regulatory steps and skills development in order to introduce formal HTA into South Africa. Shelley s presentation revolved around the educational opportunities offered by ISPOR as an organization and the identified skills development requirements for the pharmaceutical and devices industries. 5

Upcoming Activities for ISPOR South Africa Chapter 2011 Date February 2011 February 2011 March 2011 March 2011 April 2011 April 2011 May 2011 May 2011 October 2011 Activities ISPOR South Africa will meet with the Council for Medical Schemes to discuss the application of health economics principles to the processes of reviewing the Prescribed Minimum Benefit structure for private healthcare insurance. Second meeting of the ISPOR South Africa Education working Group Conduction of the skills development survey finalized at ISPOR SA conference in 2010 The Department of Health published the South African Pharmacoeconomic Guidelines on 31 December 2010. 3 months has been given for comments to the guidelines. ISPOR SA will be submitting commentary. Meetings of ISPOR SA have been set up in January and February to address this important policy issue. Basic and advanced TreeAge Modelling Course to be given by Dominic Tilden of Thema Consulting Submission of the South African Healthcare Systems Roadmap to ISPOR International Working group Attendance and contribution to the ISPOR International Conference in Baltimore. Discussion on development of formal ISPOR driven Health Economics Programme based on results of survey. ISPOR South Africa Conference 6