The biotechnology and pharmaceutical sector is becoming increasingly driven by evidence. It's becoming clear that biotechs need to demonstrate the value of their product and understand whether it will be reimbursed by payers. The Ernst and Young Beyond Borders: Biotechnology Industry Report 2013 highlights 5 guiding principles for biotechs to demonstrate value:
- Define your value proposition – Companies cannot develop products under the assumption that it will be valued by payers, so they should understand their product's contribution any why payers would value it
- Understand standards of care and value pathways – It's key to understand not only the standards of care today, but what the standards of care are expected to be when the product hits the market. Mapping value pathways and sites of "value leakage" is also important
- Identify new solutions for value leakages – Value leakages, where failures in the current system lead to reductions in health outcomes, should be tackled to optimize health outcomes.
- Design relevant clinical trials – It's important for companies to realise what data payers want, and to design clinical trials to deliver that data. Companies should also consider increasing their use of head-to-head trials with competitor therapies, and identifying subpopulations that respond to the therapy.
- Defend your product after launch – Companies need to demonstrate value throughout a product's life cycle, perhaps through the use of big data for "value mining" after the product's launch.
You might also be interested in reading The 5 myths holding biotech back from demonstrating product value.
We recently asked industry experts at our Pharma Pricing and Market Access Outlook UK the question âHow can pharma improve payer engagement?' Download the eBook to see their answers >>
If you want to know more about the provision of real world outcomes information for pharmaceutical products and how to integrate payer expectations early in product development, you might be interested in attending Evidence 2013, 23-24 October, Boston, co-located with Market Access World 2013.