Talk about famous last words. When we last left this topic, I was wrapping up coffee with my colleague, Rick, with the ominous, “Once we get your data organized …”
After I posted my hypothesis that Managed Markets analytics and operational teams were simultaneously more over-whelmed and under-resourced (Blog Series), I had a number of good exchanges with my colleagues, both digitally and IRL.
Launching a new product in today’s Pharmaceuticals marketplace can be very challenging. The dynamics of the market are shifting at an unprecedented pace, with an ever-increasing number of factors influencing the prescribing behavior of Healthcare Professionals. This is evident in the expansion and control of integrated health systems, the conversion of FFS Medicaid to Managed Medicaid, impacts of Healthcare Reform (including Accountable Care Organizations and Healthcare Exchanges), etc. Further, the need to control healthcare costs is having a direct impact on Pharma, where physical access for sales reps is being limited, quality-based initiatives are being driven, and branded products are being restricted.
Rebates and Discounts represent one of the largest line items on Financial Statements of Pharmaceutical Manufacturers, yet the criteria for assessing contracting decisions often lacks the analytical rigor that match the financial exposure. Pre-deal analysis uses inputs from account managers which tend to overestimate both the benefit of contracting and the risks associated of not contracting. This is not a surprise since factors beyond Pharma’s control can impact the actual results, including a payer’s formulary control and related spillover impacts.
While my colleague posts that bio-pharmaceutical sales operations staff are working too hard, I think managed markets operations and analytics staff members are simultaneously more over-whelmed and under-resourced. For too long, too many bio-pharmaceutical firms have under-invested in analytics and operational infrastructure to support their managed markets organizations.