Terms

1. **pharmacoeconomics**: describes and analyzes the costs of drug therapy to health care systems and society, identifies, measures and compares the costs and consequences of pharmaceutical products and services, with research methods related to cost-minimization, cost-effectiveness, cost-benefit, cost-utility, decision analysis and quality of life assessment. (Book 1)

2. **Cost-effectiveness analysis**: evaluates health outcomes in real terms instead of monetary terms

3. **Markov models**: The disease in question is divided into distinct states and transitions probabilities are assigned for movement between these states over a discrete time period known as 'Markov cycle'. By attaching estimates of resources use and health outcome consequences to the states and transitions in the model, and running the model over a large number of cycles, it is possible to estimate the long term costs and outcomes associated wih a disease and a particular healthcare intervention. (Brigg and Sculpher, 1998)

4. **Marginal cost-effectiveness of warfarin therapy**: the cost to avoid one majoy bleeding episode by genotyping. It consists of the cost of genotyping itself, the cost of INR monitoring by AC, the additional number of INR measurements needed and the cost of treatment of major bleeding. (Schalekamp et al, 2006)