In most clinical trials, markers are measured periodically with error. In t
he presence of measurement error, the naive method of using the observed ma
rker values in the Cox model to evaluate the relationship between the marke
r and clinical outcome can produce biased estimates and lead to incorrect c
onclusions when evaluating a potential surrogate. We propose a two-stage ap
proach to account for the measurement error and reduce the bias of the esti
mate. In the first stage, an empirical Bayes estimate of the time-dependent
covariate is computed at each event time. In the second stage, these estim
ates are imputed in the Cox proportional hazards model to estimate the regr
ession parameter of interest. We demonstrate through extensive simulations
that this methodology reduces the bias of the regression estimate and corre
ctly identifies good surrogate markers more often than the naive approach.
An application evaluating CD4 count as a surrogate of disease progression i
n an AIDS clinical trial is presented.