Pharma 2020: Marketing the future - a PWC paper
By 2020, electronic medical records, e-prescribing and remote monitoring will give healthcare payers and providers in many countries access to extensive outcomes data. They will then be able to determine which medicines are particularly safe, efficacious and cost-effective in different patient populations, and include such information in their treatment protocols. They will also be able to revise the prices they pay upwards or downwards, depending on how specific medicines perform over time, as shown on the above figure.
The industry has already been forced to take the first steps down the path to pay-for performance. In the UK, for example, reimbursement of Velcade, Johnson & Johnson’s new cancer treatment, is contingent on proof of a measurable reduction in the size of a patient’s tumour. Similarly, payment for Lucentis, Novartis’s therapy for age-related macular degeneration, is subject to a dose-capping scheme under which the company bears the costs of treating any patient who requires more than 14 injections. The British government now plans to extend this approach, with a flexible pricing system under which the prices of new medicines can be raised, if they prove more effective than initially expected.
PWC believes that by 2020, pharmaceutical companies will have to collaborate much more closely with everyone in the healthcare arena to provide a range of products and services from which patients can pick and choose all but the core prescription, both to differentiate their offerings more effectively and to preserve the value of the medicines they make. More specifically, they will have to:
Recognize the interdependence of the pharmaceutical and healthcare value chains
Ensure that they invest in developing medicines the market really wants
Form a web of alliances to offer supporting services
Develop comprehensive plans for marketing and selling specialist therapies
Create organisational cultures that are suitable for marketing specialist healthcare packages
Manage multi-country launches and live licensing
Adopt a more flexible approach to pricing; and
Build marketing and sales functions that are fit for the future
Extract from the PricewaterhouseCoopers report "Pharma 2020: Marketing the future". To read more please click here: https://www.pwc.com/gx/en/pharma-life-sciences/pdf/ph2020-marketing.pdf
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