TABLE 2.

Results of numeric example with approval norm set equal to measure of health opportunity cost (λ = k = £15,000/QALY)

Metric	Patent period	Post‐patent	Total
Per patient values
Total potential net health effects	0.50	0.50
Realized population net health effects	0.00	0.50
Health foregone due to payments to manufacturer	0.50	0.00
Total values accrued over time (undiscounted)
Total potential net health effects	5000	45,000	50,000
Realized population net health effects	0	45,000	45,000
Health foregone due to payments to manufacturer	5000	0	5000
Total values accrued over time (discounted)
Total potential net health effects	4304	10,008	14,312
Realized population net health effects	0	10,008	10,008
Health foregone due to payments to manufacturer	4304	0	4304

Note: All values are net health effects in QALYs.

Abbreviations: k, measure of health opportunity cost; λ, approval norm; QALY, quality‐adjusted life year.