News and Insights
The Numerof 2019 Global Pharma Outlook
As our Numerof 2019 Global Pharma Outlook infographic illustrates, this year’s story for pharmaceutical manufacturers will be about adapting to continued pressures on price and demands for value. This will create the need for changes in current roles and external relationships. You’ll continue to engage in new and different ways with regulators, public and private payers, consumers, employers, health care delivery, physicians, retail clinics, and even medical device manufacturers.
Regulators will continue tough enforcement, including coordinated global supply chain oversight and data requirements. Biosimilars will continue to gain increasing attention. In the EU, expect direct pricing agreements, price controls, as well as reference and risk-based pricing, and access limits. In the U.S., political and legislative uncertainty will continue to create risk and opportunity and 21st Century Cures will help accelerate product approval and competition. Globally, demands will increase for transparency, real world evidence, and comparative effectiveness research.
Payer, PBM and employer pushback on high priced specialty drugs will continue to intensify, triggering price wars where alternatives are available, in addition to new reimbursement approaches. Still, collaborations by manufacturers with payers and providers on data sharing and real world evidence will grow. Consumers will get even more engaged as they pay more of the cost, although adherence will continue to be both a major challenge and opportunity.
Healthcare delivery will offer both challenges and opportunities: the former by centralizing buying decisions in cross functional committees, and the latter by offering new, high-level collaboration opportunities, like risk-sharing. U.S. integrated delivery networks (IDNs) will expand their influence over outpatient prescribing, as they move to value-based payments and go at-risk for patient outcomes. Physician employment by IDNs will stabilize and systems will work to influence product decision-making as they try to gain control over variation in cost and quality.
Given this outlook, what’s next? We recommend these key action steps:
- Develop high value products/services backed by evidence
- Craft compelling economic & clinical value propositions
- Redesign commercial models, targeting and segmentation to reach new customers
- Align R&D, Medical Affairs, and Commercial functions
- Recruit, train talent to engage executive decision makers
- Elevate business acumen, diagnostic and influence skills
- Create collaboration opportunities with payers and providers
At Numerof & Associates, we help pharmaceutical manufacturers achieve these key action steps for success in today’s evolving healthcare landscape. From competitive strategy and ensuring evidence to demonstrate value to commercial model innovation and implementation we have solutions. Read more about our perspectives and solutions for the pharmaceutical industry and see our case studies.