Market Research Report
Global Market Access Strategies
|Published by||Cutting Edge Information||Product code||374704|
|Published||Content info||156 Pages
Delivery time: 1-2 business days
|Global Market Access Strategies|
|Published: September 30, 2016||Content info: 156 Pages||
Market access and managed markets teams are a cornerstone of pharmaceutical companies' payer relationship management. The core mission of communicating an effective value story to payers now expands to include health economics work and launch sequencing. According to several interviewed executives, a primary challenge for market access teams is finding the time to coordinate and manage a growing portfolio of responsibilities.
Today, the key to successfully navigating reimbursement systems worldwide is early planning. Market access teams need to work closely with other functions - especially clinical teams - well before product launch to maximize the drug data available to payers. After launch, forward-thinking teams maintain ongoing engagement with payers and have a keen awareness of competitor activities.
This report will guide market access teams on how to structure and resource core and ancillary operations successfully. The centerpiece of most market access teams' responsibilities is payer relationship management. Data in this report show how to support those relationships with valuable health economics and pricing information. Additionally, this report examines processes for setting and adjusting market access strategies for pharmaceutical products.
Cutting Edge Information's analysts synthesized the following five key findings and recommendations from the full breadth and depth of this project's research. These principles are signposts to help you improve your company's market access strategy.
An essential ingredient of surveyed teams' pricing, reimbursement and global launch sequencing successes is building new payer relationships and expanding existing ones. Depending on the countries they target, dedicated teams may need to collaborate with a mixture of national-, regional- and local-level payer groups to secure access for their products. True to form, surveyed teams report making payer relationship activities a top priority among the many other market access responsibilities they undertake.
As shown, payer relationship management accounts for an average of 26% of surveyed companies' total market access budget (Figure E.1). Moreover, of the total FTEs assigned to market access tasks, an average of 33% support payer relationships.
Surveyed companies interact with payer groups before, during and after product launch. Ideally, companies may prefer to engage payers as early as 10 months ahead of scheduled launch. Realistically, however, this timeline falls closer to five months prior to products' market entries.
Frequent interactions with payers help dedicated teams to understand payer perspectives - beneficial both during and after company products reach the marketplace. Ahead of launch, ample communications with payer groups help companies increase their odds of ensuring product access in target markets. This preparation enables dedicated teams to:
Teams do not stop interacting with payers after products launch. Instead, they continue to nurture these important relationships, serving as an informational resource to help circumvent potential product challenges. For example, they may meet with payer groups to discuss adverse events. They may present payers with new product data to discuss how they plan to retain access in the wake of any newly launched competitor products.
As market access teams push harder for early involvement in product development, they are also increasingly developing individualized strategies for each product in their portfolio. Figure E.2 shows that 87% of surveyed teams develop a specific market access strategy for each product. Just 13% of teams develop a general strategy for multiple products within the same therapeutic area or business unit.
Developing an individual strategy for each product comes with several advantages. One key benefit is that teams are able to plan what types of clinical data payers will likely request when pursuing reimbursement. Another advantage is that groups can make minor adjustments to launch sequences that can yield significant increases in revenue.
As discussed in Chapter 5, market access teams tend to lead the way in developing individualized strategies for each product. Medical affairs, marketing and brand teams also play a role in strategy development among most surveyed companies. Additionally, the role of regulatory groups should not be discounted, especially in early strategic discussions. Regulatory teams' input is key for aligning licensing cascades in relation to launch sequencing decisions.
Market access groups face a number of challenges in their daily operations. These challenges range from effectively communicating with payers to securing the necessary resources to drive effective operations. The largest challenge, according to surveyed market access groups, is overcoming a lack of understanding about health economics and outcomes research (HEOR) among their internal clients and colleagues.
As shown in Figure E.3, the majority of surveyed groups find it difficult to overcome the lack of HEOR knowledge among internal clients. In fact, only 8% of surveyed teams report that it is not at all challenging. Another 15% each report that overcoming this lack of knowledge is slightly or moderately challenging. However, the largest percentages - 31% each - find this obstacle challenging to very challenging.
To bridge this knowledge gap, one surveyed firm, Company A, has implemented internal education. One of its internal market access experts runs regular training courses to educate other functions on the importance of health economics as well as the market access role within specific activities. Internal clients find these training programs useful. An interviewed Company A executive notes that the key is to conduct this training on a peer-to-peer level. "When I think about the training courses run by our access people, there's a mutual respect between the different functions - and our market access people really want those functions to understand what we do," he said.
When it comes to a successful product launch, the importance of early planning and strategy for market access cannot be overstated. This report's data show that all surveyed teams would ideally start activities such as market access strategy, health economics and comparative effectiveness research at least 18 months before product launch (see Figure E.4). This ideal time frame is typically three to five months before these activities actually start.
The biggest difference between current and ideal start times among surveyed companies is found in launch sequencing. According to survey data, launch sequencing is not ideally among the first three activities for companies to start early. But the gap between current and ideal timing shows that market access groups surveyed feel that launch sequencing should be given higher priority. Other large gaps between current and ideal timing include product pricing and payer relationship management.
Population health management is not yet a major strategic concern for many pharmaceutical organizations. But it may be the radar for most teams moving forward. Population health management combines various outcomes- and value-based practices that attempt to generate value for each key stakeholder in the healthcare process: patients, payers, physicians and pharmaceutical manufacturers.
Figure E.5 shows how companies of different sizes currently approach population health management.
These data suggest that population health management activities may occur mostly at large companies for now. But in the future population health management involvement will likely increase among smaller companies.
Analysts developed the information upon which this study is based through both primary and secondary sources. Cutting Edge Information's process for collecting and analyzing information encompasses two distinct tools: quantitative surveys and qualitative interviews. Both tools are necessary for understanding not only the hard metrics included in this study, but also the reasoning behind the metrics.
Cutting Edge Information analysts began developing the quantitative survey tool used in this study by working closely with pharmaceutical and medical device industry executives. Once the research team completed the survey design, analysts recruited study participants from pharmaceutical companies, biotechnology companies and medical device firms worldwide to collect data on market access teams, activities and trends. The research team collected all survey data through primary research with front-line market access experts. Altogether, Cutting Edge Information collected and analyzed data sets from 30 respondents from companies of all sizes and geographic locations. Study participants included vice presidents and directors of global and regional market access departments, as well as industry experts working for high-level consultancies.
Once participants submitted a survey, analysts used qualitative interviews to uncover more detailed information. Cutting Edge Information used telephone interviews with pharmaceutical and medical device executives to understand challenges and solutions to meeting the demands for reimbursement. Not all survey participants agreed to an interview for this study. By interviewing a selection of survey respondents, Cutting Edge Information gained a deeper understanding of market access. In return for these parties' contributions, they received the study results. Analysts used additional secondary research derived from public information related to specific companies and regulations.
To ensure that Cutting Edge Information protects the identities and privacy of all study participants, this research does not name the companies or products it examines, nor does it link specific companies with therapeutic areas. Company blinding is a critical device that allows survey respondents to comfortably provide accurate data for studies such as this one.
One FTE is equivalent to one dedicated individual working full-time at a specific function, though it may in fact be a combination of two or more people each working part-time on a task.
This study divides surveyed companies into three categories to differentiate by size and type. Whereas in other contexts these terms might be used differently, for the purposes of CEI's data analysis, the size breakdown is as follows:
Alongside the company size breakdown, market access teams are also characterized by one of four regional market types: