Cost effectiveness
3.19
The company submitted a Markov state‑transition model that reflected the natural history of chronic hepatitis C. It compared ledipasvir–sofosbuvir (with or without ribavirin) with the comparators defined in the final scope of the appraisal. The company's economic model had 9 states, according to disease stage and treatment response. The same model structure was used for all people irrespective of HCV genotype or treatment experience. The company used a monthly cycle length for the first 18 cycles, then 3‑monthly until year 2 and yearly thereafter. The company did the economic analysis from an NHS and personal social services perspective and chose a lifetime time horizon (from age 40 [for previously untreated HCV] or 45 [for previously treated HCV] until people reached 100 years). Costs and health effects were discounted at an annual rate of 3.5% and a half‑cycle correction was applied from year 3.
3.20
The cost effectiveness of ledipasvir–sofosbuvir was assessed in populations defined by HCV genotype, which included those with cirrhosis:
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previously untreated genotype 1 HCV
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previously untreated genotype 4 HCV
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previously treated genotype 1 or 4 HCV
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previously untreated genotype 3 HCV
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previously treated genotype 3 HCV, unsuitable for interferon therapy.
The company did not include people with previously treated genotype 3 HCV that was suitable for interferon therapy because it considered that it was unlikely that 24‑week ledipasvir–sofosbuvir would be cost effective compared with 12‑week sofosbuvir plus peginterferon alfa and ribavirin (given the higher treatment costs with ledipasvir–sofosbuvir and no evidence of additional efficacy).
3.21
The company used patient characteristics from the HCV Research UK database to inform the mean age, the proportion with cirrhosis, and weight of the population entering the model. People entered the model in either the non‑cirrhotic or compensated cirrhosis stages of disease. People who started treatment in the non‑cirrhotic state and were cured would not become symptomatic again. However, people with cirrhosis whose HCV was cured were still at risk of progression to the decompensated cirrhosis and hepatocellular carcinoma state. Those who did not clear the virus after treatment remained in their respective health states, or progressed to more severe stages of chronic HCV. All people in the decompensated cirrhosis health state were assumed to be candidates for liver transplant. The company chose transition probabilities for disease progression from several publications used in recent NICE technology appraisals of treatments for HCV (Cardoso et al. 2010; Fattovich et al. 1997; Grishchenko et al. 2009; Hartwell et al. 2011; Shepherd et al. 2007; Siebert et al. 2005; Thompson et al. 2008). Transition probabilities from the non‑cirrhotic to cirrhotic health state varied according to age and genotype according to published literature. Age- and sex‑specific general population mortality was also applied to each health state in the company's model.
3.22
Treatment-effect data for ledipasvir–sofosbuvir were based on SVR12 from the relevant ION studies and ELECTRON‑2 (except for the previously treated genotype 3 HCV population for whom only SVR4 data were available). Treatment‑effect data for the comparators were taken from publications or the summary of product characteristics. Because there was no mixed treatment comparison (see section 3.18), the estimates of the relative effectiveness of ledipasvir–sofosbuvir with the comparators were based on naive indirect comparisons. In its base‑case analysis the company used the ledipasvir–sofosbuvir data from the genotype 1 HCV population for the analysis of the genotype 4 HCV population because:
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the data available for ledipasvir–sofosbuvir in genotype 4 HCV were limited
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the ledipasvir–sofosbuvir summary of product characteristics states that genotype 1 and 4 HCV infections are generally treated in the same way.
The company commented that the cost‑effectiveness analysis for the previously treated HCV population considered genotypes 1 and 4 HCV together. However, for the previously untreated HCV population, 8 weeks of ledipasvir–sofosbuvir is only recommended for previously untreated genotype 1 HCV without cirrhosis (people with genotype 4 HCV are treated with 12 weeks of ledipasvir–sofosbuvir only). Therefore, separate analyses were done for previously untreated genotypes 1 and 4 HCV in this population. The company explored genotype 4 data in a scenario analysis. If more than 1 treatment duration was recommended for a given genotype in the ledipasvir–sofosbuvir summary of product characteristics (based on certain patient or clinical characteristics), the company used a weighted average of the efficacy and treatment duration data in the cost‑effectiveness analysis (rather than presenting the results for each treatment duration of ledipasvir–sofosbuvir separately; also referred to as a 'blended comparison').
3.23
Resource use and costs in the company's economic model included those for treatment (drug and administration), monitoring during treatment, adverse events and for each health state (that is, monitoring of people after treatment has stopped). Drug costs were based on the list prices in the (BNF; August 2014). Monitoring costs were based on NHS reference costs, published literature or the company's clinical expert opinion (if a published source was unavailable). An additional cost for an 'initial patient evaluation' was included for people with previously untreated HCV, but the monitoring requirements for people having interferon‑containing treatments or interferon‑free treatments did not differ. Treatment durations were also used to estimate drug and monitoring costs, and the proportion of people on a given ledipasvir–sofosbuvir treatment duration was generally based on the company's clinical expert opinion. Costs for each of the health states in the company's economic model were taken from the published literature (Grishchenko et al. 2009; Longworth et al. 2014; Wright et al. 2006) and inflated to 2012 to 2013 prices. Adverse event costs were taken from the BNF and NHS reference costs. The company assumed that the cost of each adverse event also depends on whether the event is actively treated in an outpatient setting, by a hospital registrar or specialist.
3.24
To estimate the health‑related quality of life, the company used EQ‑5D utility values from Wright et al. (2006) that were based on a UK trial of mild chronic hepatitis C. For people who had an SVR, the company's economic model included a utility benefit of 0.04 taken from Vera‑Llonch et al. (2013). The company's economic model also captured the health‑related quality of life of people while on treatment (independent of whether they had cirrhosis or not). The company assumed that the health‑related quality of life of people treated with ledipasvir–sofosbuvir without ribavirin did not change while on treatment, but reduced in people having treatments that included ribavirin or interferon. The company stated that these 'on treatment' decrements were assumed to include any effect on health‑related quality of life from treatment‑related adverse events.
3.25
The company's deterministic cost‑effectiveness results for ledipasvir–sofosbuvir compared with the comparators for each population and ordered by cost are given in tables 4 to 8.
Abbreviations: BOC, boceprevir; ICER, incremental cost-effectiveness ratio; LDV, ledipasvir; LY, life years; PR, peginterferon alfa + ribavirin; QALY, quality‑adjusted life year; SMV, simeprevir; SOF, sofosbuvir; TVR, telaprevir.
Note: Dominated – treatment gives fewer QALYs at greater cost than comparator.
Abbreviations: ICER, incremental cost‑effectiveness ratio; LDV, ledipasvir; LY, life years; PR, peginterferon alfa + ribavirin; QALY, quality‑adjusted life year; SMV, simeprevir; SOF, sofosbuvir.
Notes: Dominated – treatment gives fewer QALYs at greater cost than comparator.
Extended dominance – a combination of 2 of its comparators provides equal health at a reduced cost.
Abbreviations: BOC, boceprevir; ICER, incremental cost-effectiveness ratio; LDV, ledipasvir; LY, life years; PR, peginterferon alfa + ribavirin; QALY, quality‑adjusted life year; SMV, simeprevir; SOF, sofosbuvir; TVR, telaprevir.
Notes: Dominated – treatment gives fewer QALYs at greater cost than comparator. Extended dominance – a combination of 2 of its comparators provides equal health at a reduced cost.
Abbreviations: ICER, incremental cost‑effectiveness ratio; LDV, ledipasvir; LY, life years; PR, peginterferon alfa + ribavirin; QALY, quality‑adjusted life year; RBV, ribavirin; SOF, sofosbuvir.
Notes: Dominated – treatment gives fewer QALYs at greater cost than comparator. Extended dominance – a combination of 2 of its comparators provides equal health at a reduced cost.
Abbreviations: ICER, incremental cost‑effectiveness ratio; LDV, ledipasvir; LY, life years; QALY, quality-adjusted life year; RBV, ribavirin; SOF, sofosbuvir.
3.26
For most comparisons, ledipasvir–sofosbuvir resulted in lower costs 'off treatment' because it was associated with better efficacy (because there was a higher probability of cure, fewer people move to more expensive severe health states). For some comparisons (particularly for previously untreated genotype 1 HCV), ledipasvir–sofosbuvir was also associated with lower 'on treatment' costs because of shorter treatment duration and less intensive monitoring. Across all populations, a higher number of quality‑adjusted life years (QALYs) were gained with ledipasvir–sofosbuvir treatment than with the comparators. The company stated that this is because ledipasvir–sofosbuvir is associated with a higher probability of cure and therefore more people enter the SVR health state (associated with improved health‑related quality of life) and fewer people progress to the more severe health states (associated with poorer health‑related quality of life).
3.27
The company presented results of a one‑way sensitivity analysis for ledipasvir–sofosbuvir compared with each of the comparators for each population (see section 3.20). The one‑way sensitivity analyses showed that the company's incremental cost‑effectiveness ratios (ICERs) for ledipasvir–sofosbuvir were most sensitive to changes to the 'on treatment' costs for people without cirrhosis, the discount rates used for costs and outcomes, the SVR rates of ledipasvir–sofosbuvir and the comparators, and the transition probability from the non‑cirrhotic to the compensated cirrhosis health state.
3.28
The company did a scenario analysis using genotype 4 HCV clinical data. For people with previously untreated genotype 4 HCV, the company's ICER comparing ledipasvir–sofosbuvir with no treatment decreased from £10,468 to £9,925 per QALY gained, but when using a fully incremental analysis the company's ICER for ledipasvir–sofosbuvir increased from £12,715 (compared with peginterferon alfa plus ribavirin) to £17,390 per QALY gained (compared with simeprevir plus peginterferon alfa and ribavirin). For people with previously treated genotype 4 HCV, the company's ICER comparing ledipasvir–sofosbuvir with no treatment decreased from £13,527 to £12,313 per QALY gained, and when using a fully incremental analysis the company's ICER for ledipasvir–sofosbuvir decreased from £13,527 (compared with no treatment) to £12,313 per QALY gained (compared with no treatment).
3.29
The company also presented results from probabilistic sensitivity analyses for each population. The probability of ledipasvir–sofosbuvir being cost effective compared with all comparator technologies at £20,000 and £30,000 per QALY gained is given in table 9.
Abbreviations: HCV, hepatitis C virus; QALY, quality‑adjusted life year.
3.30
The company presented ICERs for the subgroups of people without cirrhosis and with compensated cirrhosis (see table 10). The company commented that the cost effectiveness may vary in people with cirrhosis because of differences in efficacy and treatment duration of ledipasvir–sofosbuvir or comparator treatments.
Abbreviations: BOC, boceprevir; HCV, hepatitis C virus; ICER, incremental cost-effectiveness ratio; LDV, ledipasvir; PEG-IFN, peginterferon alfa; PR, peginterferon alfa + ribavirin; QALY; quality‑adjusted life year; RBV, ribavirin; SMV, simeprevir; SOF, sofosbuvir; TVR, telaprevir.
Notes:Dominant – comparator treatment gives fewer QALYs at greater cost than ledipasvir–sofosbuvir. The company's ICERs for the subgroup analysis are for ledipasvir–sofosbuvir compared with the reference comparator from the company's base-case incremental analysis. If the company did an incremental analysis for its subgroup analysis, it may indicate alternative comparators.
3.31
The company did not present ICERs for the following subgroups included in the final scope of the appraisal.
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People co-infected with HIV: The company did not model the co‑infected HIV population separately because it considered that the efficacy and safety of ledipasvir–sofosbuvir treatments for people co‑infected with HIV and HCV is similar to that seen in people with HCV mono‑infection, and as such is treated in the same way. The company stated this approach was validated by its clinical experts and was conservative because HCV–HIV co‑infection is likely to progress to severe health states more quickly if left untreated than HCV mono‑infection.
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People who had treatment before and after liver transplant: The company did not model this subgroup because of a lack of clinical data.
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Response to previous treatment (for example, null response, partial response, relapse): The company did not consider this subgroup to be relevant because response to interferon‑free treatments (such as ledipasvir–sofosbuvir) is not affected by previous response to interferon‑containing treatments.
Company's additional evidence
3.57
The company provided additional evidence in response to consultation. The company focused its response on:
3.58
The company stated that the marketing authorisation allows some people with previously treated genotype 1 or 4 HCV with cirrhosis to have 12 weeks (rather than 24 weeks) of treatment with ledipasvir–sofosbuvir. It explained that these people are those 'deemed at low risk for clinical disease progression and who have subsequent retreatment options'. The company considered that the European Medicines Agency included this criterion so 'individual clinical judgement could determine those patients whose HCV would benefit from 12 weeks' treatment with ledipasvir–sofosbuvir'. However, the company sought advice from its clinical advisors to define 'low risk of clinical disease progression' and 'subsequent retreatment options' that could be used to identify these people in clinical practice. The company stated that 12 weeks' treatment with ledipasvir–sofosbuvir should be considered if all the following criteria are met:
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Child–Pugh score of 6 or below (that is, class A)
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platelet count of 75,000/mm3 or more
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no features of portal hypertension (for example, absence of oesophageal varices)
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no history of an HCV-associated decompensation episode
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not previously treated with an NS5A inhibitor (for example, ledipasvir or daclatasvir).
3.59
The company presented pooled SVR12 data for people with previously treated genotype 1 HCV with cirrhosis and a platelet count of 75,000/mm3 or more from the ION studies. The company noted that people with a history of HCV‑related decompensation episodes or who were previously treated with an NS5A inhibitor were excluded from the ION studies, and information on people with features of portal hypertension was not collected. The SVR12 rate for 12 weeks' ledipasvir–sofosbuvir was 96% (197 out of 206 people). The company presented an analysis for people with previously treated genotype 1 or 4 HCV with cirrhosis for 12 weeks' ledipasvir–sofosbuvir treatment 'deemed at low risk of clinical disease progression and who have subsequent retreatment options'. This analysis incorporated the approach taken in the ERG's exploratory analyses as preferred by the Committee (see section 4.11), and used the pooled SVR12 data from the ION studies (see table 14).
Abbreviations: BOC, boceprevir; ED, extended dominance; ICER, incremental cost‑effectiveness ratio; LDV, ledipasvir; PR, peginterferon alfa + ribavirin; QALY, quality‑adjusted life year, SMV, simeprevir; SOF, sofosbuvir; TVR, telaprevir.
Notes: Dominated – treatment gives fewer QALYs at greater cost than comparator. Extended dominance – a combination of 2 of its comparators provides equal health at a reduced cost.
3.60
The company also presented updated ICERs using the approach taken in the ERG's exploratory analyses for people with genotype 3 HCV whose HCV was unsuitable for interferon therapy (stratified by treatment history and presence of cirrhosis; see table 15). SVR12 data for people with previously untreated genotype 3 HCV were consistent with those presented in the company's original submission (see table 3). However, the company updated its economic model to include SVR12 rather than SVR4 data for people with previously treated genotype 3 HCV. The company noted that in ELECTRON‑2, people with previously treated genotype 3 HCV had an SVR12 of 89% (25 out of 28 people) with cirrhosis, and an SVR12 of 73% (16 out of 22 people) without cirrhosis.
Abbreviations: ICER, incremental cost-effectiveness ratio; LDV, ledipasvir; QALY, quality‑adjusted life year, RBV, ribavirin; SOF, sofosbuvir.
3.61
The company commented that the transition probabilities for compensated or decompensated cirrhosis to hepatocellular carcinoma from Cardoso et al. (2010) were more appropriate than from Fattovich et al. (1997). It stated this was because Cardoso et al. better reflected the relative risk reduction of developing hepatocellular carcinoma in people with compensated cirrhosis who had an SVR, compared with people with compensated cirrhosis who are untreated or without an SVR (80% [Cardoso] compared with 8.6% [Fattovich]). The company considered that this was supported by clinician opinion.