Methodology, Parameters, and Calculations
health economics methodology, clinical trial cost analysis, medical research ROI, cost-benefit analysis healthcare, sensitivity analysis, Monte Carlo simulation, DALY calculation, pragmatic clinical trials
Overview
This appendix documents all 30 parameters used in the analysis, organized by type:
- External sources (peer-reviewed): 7
- Calculated values: 12
- Core definitions: 11
Calculated Values
Parameters derived from mathematical formulas and economic models.
Total Annual Decentralized Framework for Drug Assessment Operational Costs: $40M
Total annual Decentralized Framework for Drug Assessment operational costs (sum of all components: platform + staff + infra + regulatory + community)
Inputs:
- Decentralized Framework for Drug Assessment Maintenance Costs: $15M (95% CI: $10M - $22M)
- Decentralized Framework for Drug Assessment Staff Costs: $10M (95% CI: $7M - $15M)
- Decentralized Framework for Drug Assessment Infrastructure Costs: $8M (95% CI: $5M - $12M)
- Decentralized Framework for Drug Assessment Regulatory Coordination Costs: $5M (95% CI: $3M - $8M)
- Decentralized Framework for Drug Assessment Community Support Costs: $2M (95% CI: $1M - $3M)
\[ \begin{gathered} OPEX_{dFDA} \\ = Cost_{platform} + Cost_{staff} + Cost_{infra} \\ + Cost_{regulatory} + Cost_{community} \\ = \$15M + \$10M + \$8M + \$5M + \$2M \\ = \$40M \end{gathered} \]
✓ High confidence
Sensitivity Analysis
Sensitivity Indices for Total Annual Decentralized Framework for Drug Assessment Operational Costs
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| Decentralized Framework for Drug Assessment Maintenance Costs (USD/year) | 0.3542 | Moderate driver |
| Decentralized Framework for Drug Assessment Staff Costs (USD/year) | 0.2355 | Weak driver |
| Decentralized Framework for Drug Assessment Infrastructure Costs (USD/year) | 0.2060 | Weak driver |
| Decentralized Framework for Drug Assessment Regulatory Coordination Costs (USD/year) | 0.1469 | Weak driver |
| Decentralized Framework for Drug Assessment Community Support Costs (USD/year) | 0.0576 | Minimal effect |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Total Annual Decentralized Framework for Drug Assessment Operational Costs
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $40M |
| Mean (expected value) | $39.9M |
| Median (50th percentile) | $39M |
| Standard Deviation | $8.21M |
| 90% Range (5th-95th percentile) | [$27.3M, $55.6M] |
The histogram shows the distribution of Total Annual Decentralized Framework for Drug Assessment Operational Costs across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Total Annual Decentralized Framework for Drug Assessment Operational Costs will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Decentralized Framework for Drug Assessment Annual Benefit: R&D Savings: $58.6B
Annual Decentralized Framework for Drug Assessment benefit from R&D savings (trial cost reduction, secondary component)
Inputs:
- Annual Global Spending on Clinical Trials 📊: $60B (95% CI: $50B - $75B)
- dFDA Trial Cost Reduction Percentage 🔢: 97.7%
\[ \begin{gathered} Benefit_{RD,ann} \\ = Spending_{trials} \times Reduce_{pct} \\ = \$60B \times 97.7\% \\ = \$58.6B \end{gathered} \] where: \[ \begin{gathered} Reduce_{pct} \\ = 1 - \frac{Cost_{pragmatic,pt}}{Cost_{P3,pt}} \\ = 1 - \frac{\$929}{\$41K} \\ = 97.7\% \end{gathered} \] ✓ High confidence
Sensitivity Analysis
Sensitivity Indices for Decentralized Framework for Drug Assessment Annual Benefit: R&D Savings
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| Annual Global Spending on Clinical Trials (USD) | 1.0205 | Strong driver |
| dFDA Trial Cost Reduction Percentage (percentage) | 0.0244 | Minimal effect |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Decentralized Framework for Drug Assessment Annual Benefit: R&D Savings
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $58.6B |
| Mean (expected value) | $58.8B |
| Median (50th percentile) | $57.8B |
| Standard Deviation | $7.66B |
| 90% Range (5th-95th percentile) | [$49.2B, $73.1B] |
The histogram shows the distribution of Decentralized Framework for Drug Assessment Annual Benefit: R&D Savings across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Decentralized Framework for Drug Assessment Annual Benefit: R&D Savings will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Decentralized Framework for Drug Assessment Annual Net Savings (R&D Only): $58.6B
Annual net savings from R&D cost reduction only (gross savings minus operational costs, excludes regulatory delay value)
Inputs:
- Decentralized Framework for Drug Assessment Annual Benefit: R&D Savings 🔢: $58.6B
- Total Annual Decentralized Framework for Drug Assessment Operational Costs 🔢: $40M
\[ \begin{gathered} Savings_{RD,ann} \\ = Benefit_{RD,ann} - OPEX_{dFDA} \\ = \$58.6B - \$40M \\ = \$58.6B \end{gathered} \] where: \[ \begin{gathered} Benefit_{RD,ann} \\ = Spending_{trials} \times Reduce_{pct} \\ = \$60B \times 97.7\% \\ = \$58.6B \end{gathered} \] where: \[ \begin{gathered} Reduce_{pct} \\ = 1 - \frac{Cost_{pragmatic,pt}}{Cost_{P3,pt}} \\ = 1 - \frac{\$929}{\$41K} \\ = 97.7\% \end{gathered} \] where: \[ \begin{gathered} OPEX_{dFDA} \\ = Cost_{platform} + Cost_{staff} + Cost_{infra} \\ + Cost_{regulatory} + Cost_{community} \\ = \$15M + \$10M + \$8M + \$5M + \$2M \\ = \$40M \end{gathered} \] ✓ High confidence
Sensitivity Analysis
Sensitivity Indices for Decentralized Framework for Drug Assessment Annual Net Savings (R&D Only)
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| Decentralized Framework for Drug Assessment Annual Benefit: R&D Savings (USD/year) | 1.0011 | Strong driver |
| Total Annual Decentralized Framework for Drug Assessment Operational Costs (USD/year) | -0.0011 | Minimal effect |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Decentralized Framework for Drug Assessment Annual Net Savings (R&D Only)
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $58.6B |
| Mean (expected value) | $58.8B |
| Median (50th percentile) | $57.8B |
| Standard Deviation | $7.66B |
| 90% Range (5th-95th percentile) | [$49.2B, $73B] |
The histogram shows the distribution of Decentralized Framework for Drug Assessment Annual Net Savings (R&D Only) across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Decentralized Framework for Drug Assessment Annual Net Savings (R&D Only) will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Decentralized Framework for Drug Assessment Total NPV Annual OPEX: $40M
Total NPV annual opex (Decentralized Framework for Drug Assessment core + DIH initiatives)
Inputs:
- Decentralized Framework for Drug Assessment Core framework Annual OPEX: $18.9M (95% CI: $11M - $26.5M)
- DIH Broader Initiatives Annual OPEX: $21.1M (95% CI: $14M - $32M)
\[ \begin{gathered} OPEX_{total} \\ = OPEX_{ann} + OPEX_{DIH,ann} \\ = \$18.9M + \$21.1M \\ = \$40M \end{gathered} \]
✓ High confidence
Sensitivity Analysis
Sensitivity Indices for Decentralized Framework for Drug Assessment Total NPV Annual OPEX
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| DIH Broader Initiatives Annual OPEX (USD/year) | 0.5419 | Strong driver |
| Decentralized Framework for Drug Assessment Core framework Annual OPEX (USD/year) | 0.4592 | Moderate driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Decentralized Framework for Drug Assessment Total NPV Annual OPEX
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $40M |
| Mean (expected value) | $39.9M |
| Median (50th percentile) | $39.1M |
| Standard Deviation | $8.04M |
| 90% Range (5th-95th percentile) | [$27.5M, $55.4M] |
The histogram shows the distribution of Decentralized Framework for Drug Assessment Total NPV Annual OPEX across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Decentralized Framework for Drug Assessment Total NPV Annual OPEX will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
NPV of Decentralized Framework for Drug Assessment Benefits (R&D Only, 10-Year Discounted): $389B
NPV of Decentralized Framework for Drug Assessment R&D savings only with 5-year adoption ramp (10-year horizon, most conservative financial estimate)
Inputs:
- Decentralized Framework for Drug Assessment Annual Net Savings (R&D Only) 🔢: $58.6B
- Standard Discount Rate for NPV Analysis: 3%
\[ \begin{gathered} NPV_{RD} \\ = \sum_{t=1}^{10} \frac{Savings_{RD,ann} \times \frac{\min(t,5)}{5}}{(1+r)^t} \end{gathered} \]
✓ High confidence
Sensitivity Analysis
Sensitivity Indices for NPV of Decentralized Framework for Drug Assessment Benefits (R&D Only, 10-Year Discounted)
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| Decentralized Framework for Drug Assessment Annual Net Savings (R&D Only) (USD/year) | 1.0000 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: NPV of Decentralized Framework for Drug Assessment Benefits (R&D Only, 10-Year Discounted)
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $389B |
| Mean (expected value) | $391B |
| Median (50th percentile) | $384B |
| Standard Deviation | $50.9B |
| 90% Range (5th-95th percentile) | [$327B, $485B] |
The histogram shows the distribution of NPV of Decentralized Framework for Drug Assessment Benefits (R&D Only, 10-Year Discounted) across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that NPV of Decentralized Framework for Drug Assessment Benefits (R&D Only, 10-Year Discounted) will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Decentralized Framework for Drug Assessment Present Value of Annual OPEX Over 10 Years: $342M
Present value of annual opex over 10 years (NPV formula)
Inputs:
- Decentralized Framework for Drug Assessment Total NPV Annual OPEX 🔢: $40M
- Standard Discount Rate for NPV Analysis: 3%
- Standard Time Horizon for NPV Analysis: 10 years
\[ PV_{OPEX} = OPEX_{ann} \times \frac{1 - (1+r)^{-T}}{r} \]
✓ High confidence
Sensitivity Analysis
Sensitivity Indices for Decentralized Framework for Drug Assessment Present Value of Annual OPEX Over 10 Years
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| Decentralized Framework for Drug Assessment Total NPV Annual OPEX (USD/year) | 1.0000 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Decentralized Framework for Drug Assessment Present Value of Annual OPEX Over 10 Years
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $342M |
| Mean (expected value) | $340M |
| Median (50th percentile) | $333M |
| Standard Deviation | $68.6M |
| 90% Range (5th-95th percentile) | [$235M, $473M] |
The histogram shows the distribution of Decentralized Framework for Drug Assessment Present Value of Annual OPEX Over 10 Years across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Decentralized Framework for Drug Assessment Present Value of Annual OPEX Over 10 Years will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Decentralized Framework for Drug Assessment Total NPV Cost: $611M
Total NPV cost (upfront + PV of annual opex)
Inputs:
- Decentralized Framework for Drug Assessment Present Value of Annual OPEX Over 10 Years 🔢: $342M
- Decentralized Framework for Drug Assessment Total NPV Upfront Costs 🔢: $270M
\[ \begin{gathered} Cost_{dFDA,total} \\ = PV_{OPEX} + Cost_{upfront,total} \\ = \$342M + \$270M \\ = \$611M \end{gathered} \] where: \[ PV_{OPEX} = OPEX_{ann} \times \frac{1 - (1+r)^{-T}}{r} \] where: \[ \begin{gathered} OPEX_{total} \\ = OPEX_{ann} + OPEX_{DIH,ann} \\ = \$18.9M + \$21.1M \\ = \$40M \end{gathered} \] where: \[ \begin{gathered} Cost_{upfront,total} \\ = Cost_{upfront} + Cost_{DIH,init} \\ = \$40M + \$230M \\ = \$270M \end{gathered} \] ✓ High confidence
Sensitivity Analysis
Sensitivity Indices for Decentralized Framework for Drug Assessment Total NPV Cost
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| Decentralized Framework for Drug Assessment Present Value of Annual OPEX Over 10 Years (USD) | 0.5417 | Strong driver |
| Decentralized Framework for Drug Assessment Total NPV Upfront Costs (USD) | 0.4585 | Moderate driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Decentralized Framework for Drug Assessment Total NPV Cost
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $611M |
| Mean (expected value) | $609M |
| Median (50th percentile) | $595M |
| Standard Deviation | $127M |
| 90% Range (5th-95th percentile) | [$415M, $853M] |
The histogram shows the distribution of Decentralized Framework for Drug Assessment Total NPV Cost across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Decentralized Framework for Drug Assessment Total NPV Cost will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Decentralized Framework for Drug Assessment Total NPV Upfront Costs: $270M
Total NPV upfront costs (Decentralized Framework for Drug Assessment core + DIH initiatives)
Inputs:
- Decentralized Framework for Drug Assessment Core framework Build Cost: $40M (95% CI: $25M - $65M)
- DIH Broader Initiatives Upfront Cost: $230M (95% CI: $150M - $350M)
\[ \begin{gathered} Cost_{upfront,total} \\ = Cost_{upfront} + Cost_{DIH,init} \\ = \$40M + \$230M \\ = \$270M \end{gathered} \]
✓ High confidence
Sensitivity Analysis
Sensitivity Indices for Decentralized Framework for Drug Assessment Total NPV Upfront Costs
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| DIH Broader Initiatives Upfront Cost (USD) | 0.8338 | Strong driver |
| Decentralized Framework for Drug Assessment Core framework Build Cost (USD) | 0.1662 | Weak driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Decentralized Framework for Drug Assessment Total NPV Upfront Costs
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $270M |
| Mean (expected value) | $269M |
| Median (50th percentile) | $262M |
| Standard Deviation | $58.1M |
| 90% Range (5th-95th percentile) | [$181M, $380M] |
The histogram shows the distribution of Decentralized Framework for Drug Assessment Total NPV Upfront Costs across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Decentralized Framework for Drug Assessment Total NPV Upfront Costs will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
ROI from Decentralized Framework for Drug Assessment R&D Savings Only: 637:1
ROI from Decentralized Framework for Drug Assessment R&D savings only (10-year NPV, most conservative estimate)
Inputs:
- NPV of Decentralized Framework for Drug Assessment Benefits (R&D Only, 10-Year Discounted) 🔢: $389B
- Decentralized Framework for Drug Assessment Total NPV Cost 🔢: $611M
\[ \begin{gathered} ROI_{RD} \\ = \frac{NPV_{RD}}{Cost_{dFDA,total}} \\ = \frac{\$389B}{\$611M} \\ = 637 \end{gathered} \] where: \[ \begin{gathered} NPV_{RD} \\ = \sum_{t=1}^{10} \frac{Savings_{RD,ann} \times \frac{\min(t,5)}{5}}{(1+r)^t} \end{gathered} \] where: \[ \begin{gathered} Savings_{RD,ann} \\ = Benefit_{RD,ann} - OPEX_{dFDA} \\ = \$58.6B - \$40M \\ = \$58.6B \end{gathered} \] where: \[ \begin{gathered} Benefit_{RD,ann} \\ = Spending_{trials} \times Reduce_{pct} \\ = \$60B \times 97.7\% \\ = \$58.6B \end{gathered} \] where: \[ \begin{gathered} Reduce_{pct} \\ = 1 - \frac{Cost_{pragmatic,pt}}{Cost_{P3,pt}} \\ = 1 - \frac{\$929}{\$41K} \\ = 97.7\% \end{gathered} \] where: \[ \begin{gathered} OPEX_{dFDA} \\ = Cost_{platform} + Cost_{staff} + Cost_{infra} \\ + Cost_{regulatory} + Cost_{community} \\ = \$15M + \$10M + \$8M + \$5M + \$2M \\ = \$40M \end{gathered} \] where: \[ \begin{gathered} Cost_{dFDA,total} \\ = PV_{OPEX} + Cost_{upfront,total} \\ = \$342M + \$270M \\ = \$611M \end{gathered} \] where: \[ PV_{OPEX} = OPEX_{ann} \times \frac{1 - (1+r)^{-T}}{r} \] where: \[ \begin{gathered} OPEX_{total} \\ = OPEX_{ann} + OPEX_{DIH,ann} \\ = \$18.9M + \$21.1M \\ = \$40M \end{gathered} \] where: \[ \begin{gathered} Cost_{upfront,total} \\ = Cost_{upfront} + Cost_{DIH,init} \\ = \$40M + \$230M \\ = \$270M \end{gathered} \] ✓ High confidence
Sensitivity Analysis
Sensitivity Indices for ROI from Decentralized Framework for Drug Assessment R&D Savings Only
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| Decentralized Framework for Drug Assessment Total NPV Cost (USD) | -2.6305 | Strong driver |
| NPV of Decentralized Framework for Drug Assessment Benefits (R&D Only, 10-Year Discounted) (USD) | 1.7615 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: ROI from Decentralized Framework for Drug Assessment R&D Savings Only
| Statistic | Value |
|---|---|
| Baseline (deterministic) | 637:1 |
| Mean (expected value) | 653:1 |
| Median (50th percentile) | 645:1 |
| Standard Deviation | 58.4:1 |
| 90% Range (5th-95th percentile) | [569:1, 790:1] |
The histogram shows the distribution of ROI from Decentralized Framework for Drug Assessment R&D Savings Only across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that ROI from Decentralized Framework for Drug Assessment R&D Savings Only will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
dFDA Trial Cost Reduction Factor: 44.1x
Cost reduction factor projected for dFDA pragmatic trials (traditional Phase 3 cost / dFDA pragmatic cost per patient)
Inputs:
- Phase 3 Cost per Patient 📊: $41K (95% CI: $20K - $120K)
- dFDA Pragmatic Trial Cost per Patient 📊: $929 (95% CI: $97 - $3K)
\[ \begin{gathered} k_{reduce} \\ = \frac{Cost_{P3,pt}}{Cost_{pragmatic,pt}} \\ = \frac{\$41K}{\$929} \\ = 44.1 \end{gathered} \]
✓ High confidence
Sensitivity Analysis
Sensitivity Indices for dFDA Trial Cost Reduction Factor
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| dFDA Pragmatic Trial Cost per Patient (USD/patient) | -8.8326 | Strong driver |
| Phase 3 Cost per Patient (USD/patient) | 8.3341 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: dFDA Trial Cost Reduction Factor
| Statistic | Value |
|---|---|
| Baseline (deterministic) | 44.1x |
| Mean (expected value) | 52.8x |
| Median (50th percentile) | 48x |
| Standard Deviation | 19.5x |
| 90% Range (5th-95th percentile) | [39.4x, 89.1x] |
The histogram shows the distribution of dFDA Trial Cost Reduction Factor across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that dFDA Trial Cost Reduction Factor will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
dFDA Trial Cost Reduction Percentage: 97.7%
Trial cost reduction percentage: 1 - (dFDA pragmatic cost / traditional Phase 3 cost)
Inputs:
- dFDA Pragmatic Trial Cost per Patient 📊: $929 (95% CI: $97 - $3K)
- Phase 3 Cost per Patient 📊: $41K (95% CI: $20K - $120K)
\[ \begin{gathered} Reduce_{pct} \\ = 1 - \frac{Cost_{pragmatic,pt}}{Cost_{P3,pt}} \\ = 1 - \frac{\$929}{\$41K} \\ = 97.7\% \end{gathered} \]
✓ High confidence
Sensitivity Analysis
Sensitivity Indices for dFDA Trial Cost Reduction Percentage
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| dFDA Pragmatic Trial Cost per Patient (USD/patient) | -6.4207 | Strong driver |
| Phase 3 Cost per Patient (USD/patient) | 5.6539 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: dFDA Trial Cost Reduction Percentage
| Statistic | Value |
|---|---|
| Baseline (deterministic) | 97.7% |
| Mean (expected value) | 98% |
| Median (50th percentile) | 97.9% |
| Standard Deviation | 0.401% |
| 90% Range (5th-95th percentile) | [97.5%, 98.9%] |
The histogram shows the distribution of dFDA Trial Cost Reduction Percentage across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that dFDA Trial Cost Reduction Percentage will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
RECOVERY Trial Cost Reduction Factor: 82x
Cost reduction factor demonstrated by RECOVERY trial (traditional Phase 3 cost / RECOVERY cost per patient)
Inputs:
- Phase 3 Cost per Patient 📊: $41K (95% CI: $20K - $120K)
- Recovery Trial Cost per Patient 📊: $500 (95% CI: $400 - $2.5K)
\[ \begin{gathered} k_{RECOVERY} \\ = \frac{Cost_{P3,pt}}{Cost_{RECOVERY,pt}} \\ = \frac{\$41K}{\$500} \\ = 82 \end{gathered} \]
Methodology:66
✓ High confidence
Sensitivity Analysis
Sensitivity Indices for RECOVERY Trial Cost Reduction Factor
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| Recovery Trial Cost per Patient (USD/patient) | -2.4783 | Strong driver |
| Phase 3 Cost per Patient (USD/patient) | 2.4635 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near ±1 indicate strong influence; values exceeding ±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: RECOVERY Trial Cost Reduction Factor
| Statistic | Value |
|---|---|
| Baseline (deterministic) | 82x |
| Mean (expected value) | 71.2x |
| Median (50th percentile) | 72.4x |
| Standard Deviation | 15.3x |
| 90% Range (5th-95th percentile) | [50x, 94.1x] |
The histogram shows the distribution of RECOVERY Trial Cost Reduction Factor across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that RECOVERY Trial Cost Reduction Factor will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
External Data Sources
Parameters sourced from peer-reviewed publications, institutional databases, and authoritative reports.
ADAPTABLE Trial Cost per Patient: $929
Cost per patient in ADAPTABLE trial ($14M PCORI grant / 15,076 patients). Note: This is the direct grant cost; true cost including in-kind may be 10-40% higher.
Source:1
Uncertainty Range
Technical: 95% CI: [$929, $1.4K] • Distribution: Lognormal
What this means: There’s significant uncertainty here. The true value likely falls between $929 and $1.4K (±25%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
~ Medium confidence
Return on Investment from Childhood Vaccination Programs: 13:1
dFDA Pragmatic Trial Cost per Patient: $929
dFDA pragmatic trial cost per patient. Uses ADAPTABLE trial ($929) as DELIBERATELY CONSERVATIVE central estimate. Ramsberg & Platt (2018) reviewed 108 embedded pragmatic trials; 64 with cost data had median of only $97/patient - our estimate may overstate costs by 10x. Confidence interval spans meta-analysis median to complex chronic disease trials.
Source:1
Uncertainty Range
Technical: 95% CI: [$97, $3K] • Distribution: Lognormal
What this means: This estimate is highly uncertain. The true value likely falls between $97 and $3K (±156%). This represents a very wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
~ Medium confidence
Global Annual DALY Burden: 2.88 billion DALYs/year
Global annual DALY burden from all diseases and injuries (WHO/IHME Global Burden of Disease 2021). Includes both YLL (years of life lost) and YLD (years lived with disability) from all causes.
Source:33
Uncertainty Range
Technical: Distribution: Normal (SE: 150 million DALYs/year)
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
✓ High confidence • 📊 Peer-reviewed
Annual Global Spending on Clinical Trials: $60B
Annual global spending on clinical trials (Industry: $45-60B + Government: $3-6B + Nonprofits: $2-5B). Conservative estimate using 15-20% of $300B total pharma R&D, not inflated market size projections.
Source:43
Uncertainty Range
Technical: 95% CI: [$50B, $75B] • Distribution: Lognormal (SE: $10B)
What this means: This estimate has moderate uncertainty. The true value likely falls between $50B and $75B (±21%). This represents a reasonable range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
✓ High confidence
Recovery Trial Cost per Patient: $500
RECOVERY trial cost per patient. Note: RECOVERY was an outlier - hospital-based during COVID emergency, minimal extra procedures, existing NHS infrastructure, streamlined consent. Replicating this globally will be harder.
Source:82
Uncertainty Range
Technical: 95% CI: [$400, $2.5K] • Distribution: Lognormal
What this means: This estimate is highly uncertain. The true value likely falls between $400 and $2.5K (±210%). This represents a very wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
✓ High confidence
Phase 3 Cost per Patient: $41K
Phase 3 cost per patient (median from FDA study)
Source:100
Uncertainty Range
Technical: 95% CI: [$20K, $120K] • Distribution: Lognormal
What this means: This estimate is highly uncertain. The true value likely falls between $20K and $120K (±122%). This represents a very wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
✓ High confidence
Core Definitions
Fundamental parameters and constants used throughout the analysis.
Decentralized Framework for Drug Assessment Core framework Annual OPEX: $18.9M
Decentralized Framework for Drug Assessment Core framework annual opex (midpoint of $11-26.5M)
Uncertainty Range
Technical: 95% CI: [$11M, $26.5M] • Distribution: Lognormal
What this means: There’s significant uncertainty here. The true value likely falls between $11M and $26.5M (±41%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
Core definition
Decentralized Framework for Drug Assessment Core framework Build Cost: $40M
Decentralized Framework for Drug Assessment Core framework build cost
Uncertainty Range
Technical: 95% CI: [$25M, $65M] • Distribution: Lognormal
What this means: There’s significant uncertainty here. The true value likely falls between $25M and $65M (±50%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
Core definition
Decentralized Framework for Drug Assessment Community Support Costs: $2M
Decentralized Framework for Drug Assessment community support costs
Uncertainty Range
Technical: 95% CI: [$1M, $3M] • Distribution: Lognormal
What this means: There’s significant uncertainty here. The true value likely falls between $1M and $3M (±50%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
Core definition
Decentralized Framework for Drug Assessment Infrastructure Costs: $8M
Decentralized Framework for Drug Assessment infrastructure costs (cloud, security)
Uncertainty Range
Technical: 95% CI: [$5M, $12M] • Distribution: Lognormal
What this means: There’s significant uncertainty here. The true value likely falls between $5M and $12M (±44%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
Core definition
Decentralized Framework for Drug Assessment Maintenance Costs: $15M
Decentralized Framework for Drug Assessment maintenance costs
Uncertainty Range
Technical: 95% CI: [$10M, $22M] • Distribution: Lognormal
What this means: There’s significant uncertainty here. The true value likely falls between $10M and $22M (±40%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
Core definition
Decentralized Framework for Drug Assessment Regulatory Coordination Costs: $5M
Decentralized Framework for Drug Assessment regulatory coordination costs
Uncertainty Range
Technical: 95% CI: [$3M, $8M] • Distribution: Lognormal
What this means: There’s significant uncertainty here. The true value likely falls between $3M and $8M (±50%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
Core definition
Decentralized Framework for Drug Assessment Staff Costs: $10M
Decentralized Framework for Drug Assessment staff costs (minimal, AI-assisted)
Uncertainty Range
Technical: 95% CI: [$7M, $15M] • Distribution: Lognormal
What this means: There’s significant uncertainty here. The true value likely falls between $7M and $15M (±40%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
Core definition
DIH Broader Initiatives Annual OPEX: $21.1M
DIH broader initiatives annual opex (medium case)
Uncertainty Range
Technical: 95% CI: [$14M, $32M] • Distribution: Lognormal
What this means: There’s significant uncertainty here. The true value likely falls between $14M and $32M (±43%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
Core definition
DIH Broader Initiatives Upfront Cost: $230M
DIH broader initiatives upfront cost (medium case)
Uncertainty Range
Technical: 95% CI: [$150M, $350M] • Distribution: Lognormal
What this means: There’s significant uncertainty here. The true value likely falls between $150M and $350M (±44%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values can’t go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
Core definition
Standard Discount Rate for NPV Analysis: 3%
Standard discount rate for NPV analysis (3% annual, social discount rate)
Uncertainty Range
Technical: Distribution: Fixed
Core definition
Standard Time Horizon for NPV Analysis: 10 years
Standard time horizon for NPV analysis
Uncertainty Range
Technical: Distribution: Fixed
Core definition


















































