Position your organisation for the future with Beyond the pill services
Value added services has received significant hype over the past 12 months and rightly so – by 2020 the developed world intends only to pay for treatments based on their outcomes and the UK intends to move to value based pricing next year! So far only the really big pharma companies have managed success in this area. They have proved that when done correctly services DO boost revenue, accelerate access, improve adherence and most importantly position organisations for the future. What you need is a roadmap from the companies who have made the transformation to show you how to do it – enter The Value Added Services Report 2013.
Learn how your organisation can become a trusted health care partner and not just a supplier of treatments:
- 360 degree view of value added services: Detailed interviews with all stakeholders, pharma, payors, physicians, regulators and patient advocacy groups.
- Case Studies from the leaders: We look at real examples from Janssen Connect, AstraZeneca, GSK and Fresenius Medical Care.
- Change from the top: Vice President of Corporate Development from Fresenius Medical Care talks to us about their strategic transformation. See which other VPs have contributed
- Redefine your business model: A step-by-step roadmap that it is necessary to follow in order for your company to truly redefine the way you operate so services can be fully integrated.
- Exclusive insight from those who are doing it: Understand how to build trust between pharma and other stakeholders, and achieve senior management buy in from those who have helped shaped the progression of services within their company.
Case studies from 4 out of pharma’s top 10 companies:
- Improving access to depot anti-psychotic drugs - Janssen Connect
- Managing COPD outcomes - an AstraZeneca Intelligent Pharma program
- “Plus pill” instead of “pill plus” - Pfizer Integrated Health
- The end game: Full-scale integration of products and services - Fresenius Medical Care
Key findings discussed in the report:
- This new model aims to provide better value for money, help justify higher drug costs and increase trust.
- What additional patient services are expected by payers and how can pharma prove the efficacy?
- How pharmaceutical companies can gain the trust of stakeholders, to put themselves in a position to provide these services
- Investigate how companies are able to make a return on their investments, and at what stage these services can be introduced into the trial such that they are able to be considered in the drugs value proposition
- What the different options are (depending on the underlying business model and therapy area),
- Assess whether this is a sustainable business model.
- How to introduce service so they can be used to form part of the drugs value proposition
Expert reviews on the report:
The report is comprehensive and consistent with the objective of presenting a robust business case for the use of value added services
Stefano Zagnoni, Head of strategic multichannel and innovation, Janssen
- Chapter 1: The burning platform: Pharma under pressure to innovate >
- Chapter 2: The rationale for innovation beyond the pill >
- Chapter 3: Current state of value-added services >
- Chapter 4: Advanced service-based models - four case studies >
- Chapter 5: How can pharma design and implement next generation services? >
- Chapter 6: Industry learnings >
Industry reviews 4
About eyeforpharma 4
Index of Figures and Tables 8
Executive summary 12
1. The rationale for innovation beyond the pill 16
1.1 Patent expirations on major products make blockbuster model obsolete 16
1.2 Dwindling opportunities because of increasing availability of potent generic
options for most common diseases 17
1.3 Focus on specialty drugs can only be a transition strategy 17
1.4 The opportunity of value-added services 18
2 Current state of value-added services 22
2.1 Typology of services 22
2.1.1 Services oriented towards patients 22
2.1.2 Provider-focused services 23
2.1.3 Services for payers and governments 24
2.2 Drivers of uptake 25
2.2.1 Therapeutic areas 25
2.2.2 Markets 25
2.2.4 Perceived impact 27
2.2.5 Payer perspective on value-added services 28
2.2.6 Patient perspective on value-added services 29
2.3 Assessment of current service models 30
4. Advanced service-based models - four case studies 34
4.1 Improving access to depot anti-psychotic drugs - Janssen Connect 34
4.2 Managing COPD outcomes - an AstraZeneca Intelligent Pharma program 35
4.3 “Plus pill” instead of “pill plus” - Pfizer Integrated Health 36
4.4 The end game: Full-scale integration of products and services - Fresenius Medical Care 36
5. How can pharma design and implement next generation services? 38
5.1 Bake value-added services into the development process 38
5.2 Obtain senior management buy-in 38
5.3 Plan for the long run 40
5.4 Establish a revenue model that does not depend on drug sales 42
5.5 Focus on differentiators 43
5.6 Engage external stakeholders 43
5.7 Evaluate and report results 44
- Pharma needs to urgently rethink its business model 45
- Yet there is a clear upside in business model innovation based on services 47
- Fortis Fortuna adjuvat (Fortune favors the bold) 47
- But the external environment has to change too 48
- And dialog with stakeholders is crucial 48
We've create this report to meet the needs of companies as pharma aspires towards value beyond the pill
The following four sources were used to assess what the current use of services beyond the pill is, to project where the pharmaceutical industry is going, and to point out best practices and lessons learned.
The following methods have been used:
1. Surveys: 450 pharmaceutical professionals
An exclusive eyeforpharma survey sent out to 450 pharmaceutical professionals, to which 175 responded (Figure 2). The interviewees included individuals with multiple functions in pharmaceutical companies, from marketing and sales, through health economics and outcomes research, to strategy and senior management. The survey was administered through an internet-based platform and included questions derived from a preliminary literature review and expert input.
2. Interviews: 27 in-depth one-to-ones
Twenty-seven in-depth interviews with pharmaceutical executives, consultants interviews with pharmaceutical executives, consultants, payer representatives and other experts (Figure 3). The interviews were conducted by phone between May and July 2013 and were oriented by interview guides with questions tailored to the specific role of the interviewee (payer, patient advocacy, marketing/commercial, market access).
3 Case studies: From 4 industry leaders
Four case studies of value-added services that were identified through the interviews. Follow-up discussions and desk research were used to complete the case studies.
4. Industry review
A review of the scientific and trade literature, consultancy reports, newspaper articles and conference proceedings on the topic.
Thank you to all of the interviewees, peer reviewers and companies that contributed to the creation of this report. Without their support, it could not have been written.
As part of the research for this report, 57 in-depth interviews were held. Additionally, a special thank-you must be reserved for the following individuals who contributed quotations directly:
C-Level, VP, Heads, Directors and Rising Stars of the following departments: (put this in two/three columns of bullets)
All interviews and surveys conducted have been converted graphically to allow you to absorb significance
- Figure 1: Ten-year performance of Amex Pharmaceutical Index compared with S&P 500 9
- Figure 2: Type of survey respondents 10
- Figure 3: Type of interviewees 11
- Figure 4: Major US patent expirations in 2012 16
- Figure 5: Value of US adherence market compared with major originator drug sales 21
- Figure 6: Currently, do you believe that ‘beyond the pill’ services are clinically effective? 26
- Figure 7: Do you believe that ‘beyond the pill’ services can reduce the overall cost of care? 26
- Figure 8: Do you personally believe that your organization has (so far) increased performance or revenue through success in beyond the pill services? 28
- Figure 9: How many years from now do you think it will take before ‘beyond the pill’ services are integrated into ALL treatments? 32
- Figure 10: Do you expect your budget and resource allocation towards value-added services to increase or decrease over the next three years? 33
- Figure 11: The 6 most challenging aspects of gaining support for service programs from senior management 39
- Figure 12: How long do you think it needs to take to show a financial return on ‘beyond the pill’ services to satisfy senior management? 40
- Figure 13: Estimated impact of medication adherence on medical cost for patients with chronic conditions 41
- Figure 14: What do you think is the ultimate aim of ‘beyond the pill’ services? 46
- Table 1: Type of survey respondents 11
- Table 2: Type of interviewees 11
- Table 3: Major US patent expirations in 2012 17
- Table 4: Value of US adherence market compared with major originator drug sales 21
- Table 5: Currently, do you believe that ‘beyond the pill’ services are clinically effective? 26
- Table 6: Do you believe that ‘beyond the pill’ services can reduce the overall cost of care? 26
- Table 7: Do you personally believe that your organization has (so far) increased performance or revenue through success in beyond the pill services? 28
- Table 8: How many years from now do you think it will take before ‘beyond the pill’ services are integrated into ALL treatments? 33
- Table 9: Do you expect your budget and resource allocation towards value-added services to increase or decrease over the next three years? 33
- Table 10: The most challenging aspect of gaining support for service programs from senior management 39
- Table 11: How long do you think it needs to take to show a financial return on ‘beyond the pill’ services to satisfy senior management? 41
- Table 12: Estimated impact of medication adherence on medical cost for patients with chronic conditions 41
- Table 13: What do you think is the ultimate aim of ‘beyond the pill’ services? 46
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