Fundamental Understanding of Pharmacoeconomics as an Innovative Concept within the Modern Clinical Pharmacy in Today’s Healthcare System

The objective of this article is to present the essential information regarding a novel concept of pharmacoeconomics with the purpose of enhancing today’s young pharmacy students’ understanding of the economic theory, terminology and its effect on the healthcare system. Furthermore, to assist the healthcare policy makers and providers in making decision for evaluating the affordability of medications and access to logical drug use. As the rapid changes in modern medicine is adding to the intricacy of drug therapy, the expansion of the role of pharmacists becomes extremely vital in healthcare. Therefore, the knowledge of pharmacoeconomics considered as the essential component of their profession. Pharmacoeconomics is a set of techniques to assess the Economic, Clinical and Humanistic Outcomes (ECHO) of pharmaceutical products and services. The two primary components of pharmacoeconomic studies are measures of costs and outcomes. It can be measured using the five methods such as, Cost minimization analysis (CMA), Cost of Illness (COI), Cost-effectiveness analysis (CEA), Cost-utility analysis (CUA), and Cost-benefit analysis (CBA).Pharmacoeconomics and OutcomeResearch have a significant function in the management of medication expenditure. The cost of medicines are constantly growing; therefore, the price of drugs do matter as many people in developing countries are living below-poverty-line. Consequently, countless poor individual families frequently face an option of purchasing medicines or buying groceries and perhaps other necessities due to limited resources and the high cost of the drugs. Presently pharmacoeconomics role in many developing countries is in early stages with a limited knowledge of the subject; hence, clear methodology, education, and initiative are required for its maturity.