The Committee discussed the economic analysis presented in the manufacturer's submission, the ERG's critique of the submission and the exploratory analyses undertaken by the ERG. In particular, it discussed the complexity and lack of transparency of the viral load model. With regard to transparency, the Committee was impeded by the lack of detail provided in the manufacturer's submission about which parameters were used. With regard to complexity, the Committee acknowledged that the natural history of the disease required a number of health states to be defined in the economic models. However, the Committee noted that the large number of health states meant that the data available from clinical studies were not sufficient to support clearly the transition probabilities indicated. In addition, the methods used to deal with the sparseness of the data had led to uncertainty about the outputs of the manufacturer's economic models. The Committee considered that both this complexity and lack of transparency undermined the credibility of the economic results. The Committee noted that the manufacturer did not consider alternative approaches that might have reduced the complexity of the viral load model. This, together with appropriate risk modelling, might have reduced the data requirements for populating the viral load model. The Committee noted that the economic results generated by the viral load model appeared sensitive to the choice of 'priors' and noted that the manufacturer did not present any univariate sensitivity analyses that identified the key drivers of cost effectiveness in either model. The Committee accepted that the sensitivity analyses presented by the ERG for both of the economic models showed a reduction in the probability of telbivudine being cost effective at willingness to pay thresholds of £20,000 and £30,000 per additional QALY gained. This resulted in lamivudine being the preferred option in the range of cost-effectiveness estimates that are usually seen to represent a cost-effective use of NHS resources.