TABLE 1.

Parameters used in numeric example

Parameter	Description	Value
$\Delta h$	Incremental health gain (QALYs)	0.50
$k$	Measure of health opportunity cost (expenditure to gain one QALY)	£15,000
$t_P$	Patent duration in years	10
$\Delta \text{mc}$	Incremental marginal cost	£0
$n_t$	Population treated in each year	1000
$r$	Annual discount rate for costs and health outcomes	3.5%

Abbreviation: QALY, quality‐adjusted life year.