Objective: To demonstrate the use of cost-effectiveness analysis to assess
the economic impact of donepezil in the treatment of mild or moderate AD. B
ackground: Cost-effectiveness analyses show the relationship between resour
ces used (costs) and health benefits achieved (effects) for an intervention
compared with an alternative strategy. Methods: We developed a model to es
timate the incremental cost-effectiveness of donepezil compared with no tre
atment. Ne determined costs per quality-adjusted life-years gained, a measu
rement that enhances the comparability of diverse studies. The model projec
ts the progression of AD patients into more severe disease stages and into
nursing homes, Data from a randomized clinical trial of donepezil were used
to assess the drug's impact on the B-week probabilities of progression. Da
ta on the costs and health-related quality of life associated with differen
t disease stages and settings were taken from published estimates and our c
ompanion cross-sectional study, respectively. Results: Donepezil costs are
partially offset by a reduction in the costs of care due to enhancement in
cognitive functioning and the delay to more costly disease stages and setti
ngs. The magnitude of this cost offset and of the effect of donepezil on he
alth-related quality of life depends on the model's assumptions about the d
uration of the drug effect, where controlled data are lacking. If the drug
effect exceeds 2 Sears, the model predicts that for mild AD the drug would
pay for itself in terms of cost offsets. Conclusions: The results of the co
st-effectiveness model presented here suggest that donepezil may be cost-ef
fective but additional controlled data on long-term drug efficacy are neede
d.