News and Insights
The Numerof 2023 Global Pharma Outlook
As our Numerof 2023 Global Pharma Outlook infographic illustrates, this year’s story for pharmaceutical manufacturers will be about continuing to adapt to pressures on price, especially mandated government negotiation, and demands for value while dealing with the long-term effects of the pandemic.
Across the globe, engagement with stakeholders will require new approaches as systems and practices continue to limit representative access in some therapeutic areas. This will force continued innovation and an omnichannel approach – not just in your engagement efforts, but organizationally, in the way you structure and support your commercial model. The ongoing need for new and different ways to engage with healthcare executives, physicians, and payers is here to stay.
Continued efforts to accelerate drug development mean companies will face competition more quickly than before. The aftershocks of the pandemic have intensified the spotlight on supply chain challenges. Manufacturers will increase efforts to re-shore critical supply chain elements to control end to end supply, quality and cost, while working to meet the more intense requirements from regulators. In the EU, expect direct pricing agreements, price controls, as well as reference and risk-based pricing, and access limitations. In the U.S., the Inflation Reduction Act of 2022 is game changing legislation that allows government intervention to control drug prices. The U.S. is looking increasingly similar to the EU, and the passage of the IRA doesn’t preclude further administrative action. The forthcoming negotiation process and debates to shape the details of the Inflation Reduction Act may have profound implications on the industry’s future.
Payer, PBM and employer pushback on drug prices will continue to intensify, as will efforts to create 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.
Access restrictions will continue in healthcare delivery and with payers. Anticipated challenges include continued efforts to centralize buying decisions in cross functional committees, and additional restrictions regarding customer engagement. U.S. integrated delivery networks (IDNs) will expand their influence over outpatient prescribing, as they move closer to value-based payments. Systems will try 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:
- Redesign commercial models, targeting/segmentation
- Align R&D, Medical Affairs, Commercial functions
- Craft compelling databased economic & clinical value propositions that resonate with key stakeholders
- Recruit, train talent to engage executive decision makers
- Elevate business acumen, diagnostic, and influence skills
- Structure more strategic collaborations with providers/payers
- Develop portfolio investment and pricing strategies that reflect lifetime value
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.