The recent announcement of Biogen’s potential breakthrough in finding a drug that may finally deliver benefits to Alzheimer’s patients represents a milestone in treating this dreadful disease. It also should serve as a reminder and an important lesson to those who wish to undermine this engine of innovation on the incentives needed to bring novel medicines to the marketplace. Unfortunately, a rational pharmaceutical policy that is needed to maintain innovation for the benefit of patients is in short supply among our politicians. The prospect of seriously onerous policies against the industry is no longer theoretical but now a distinct possibility. It is no longer “if” but “when” such policies will occur. Pharma executives must be prepared to shift their thinking and operations when such policies are put into effect. This white paper lays out the reasons for these changes and action steps executives must make to shift from the current volume-based to value/outcomes-based commercial model design.
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