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Competition among new pharmaceutical products for unrestricted formulary inclusion continues to dominate the concerns of managed care decision makers. These competitive pressures may originate when a formulary appears to be overcrowded and underfunded based on what it is expected to deliver-primarily financial management of an ever-increasing list of new products in addition to day-to-day pharmaceutical needs. For those managers facing the daunting task of improving quality of pharmaceutical care with finite resources, appropriate product selection has become a dual consideration involving assessment of the new product's competitive clinical features and benefits, in tandem with an assessment of its formulary cost impact. We present a simple and objective financial model that, based on historical utilization data, will help predict a priori an accurate estimate of the cost impact of a new product. We illustrate our financial model with a new calcium antagonist (CA), T-Block. T-Block is the first...

A Predictive Cost Analysis Model for Estimating Formulary Impact of New Products in Managed Care