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How to Create and Capture Value Beyond the Pill “Big Pharma has to move beyond just ‘selling the pill‘ ” Joseph Jimenez, Novartis CEO

Creating value beyond the pill

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Creating and capturing value beyond the pill: why it's a necessity, how to do it right and key success factors

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Page 1: Creating value beyond the pill

How to Create and CaptureValue Beyond the Pill

“Big Pharma has to move beyond just ‘selling the pill‘ ”Joseph Jimenez, Novartis CEO

Page 2: Creating value beyond the pill

Beyond-the-pill is a logical and inevitable path forward for all

PAYERS

Rising costs of chronic disease management – focus on outcome vs cost

UNMET NEEDS

Opportunities for improved care

NEW TECHNOLOGIES

New service possibilities

PHARMAS

Increasingly difficult to differentiate through pills alone

PATIENTS

Demanding more support on managing chronic conditions

Creating value by embedding products into a holistic

offering with the aim to improve patient outcomes and

provide tangible competitive advantages

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Leading pharma companies have started to experiment with services beyond-the-pill

Innovative solutions that facilitate shared decision making between patients and physicians

„Proteus ingestible sensor for tracking medication intake receives FDA clearance“

Integrated care model for schizophrenia patients in

Germany

In-house Care Mgt. Subsidiaries:

Partnerships & Alliances: Healthcare Stakeholder Collaborations:

Patient Support Programs:

&

For example:

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Done right, significant impacts can be achieved with services beyond the pill

Better Health OutcomesIn outpatient settings, patient assistance program enrolment plus additional medication services (e.g., counseling, reminders) is associated with improved disease indicators for patients.

(Tisha Moniek Felder, Jan. 2010, http://digitalcommons.library.tmc.edu/dissertations/AAI3398971)

Easier Access to TherapyEspecially for newly launched products with delays in coverage decisions by PBMs, health plans and government payers.

(Suzanne Shelley, Pharmaceutical Commerce, February 26, 2013)

Increased Brand LoyaltyThrough the “Lipitor For You” program  Pfizer maintained three times the normal market share for Lipitor after the first generic hit.

(http://beyondthepill.medivo.com/2012/08/coupons-and-co-pays-how-a-few-brands-are-battling-generics/)

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Adding standard off-the-shelf services to a product is the fast & easy tactical approach

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Patient website...

An app... A reminder...

A brochure ...

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But these services are often disconnected and fail to truly address stakeholder needs

Awareness

DiagnosisMonitoring

Fear & anxietyPoor physician-patient communication

Diagnostics not part of all check-ups or

not reimbursed

Can a simple brochure deal with emotional & inter-personal challenges?

Can a simple brochure deal with emotional & inter-personal challenges?

Early symptoms not recognized

Is an awareness campaign sufficient?

Is an awareness campaign sufficient?

Therapy

Challenges along a patient‘s journey

Complex medication for

co-morbid patients

Side effects and drug-drug interactions

Is a simple product information enough? Is a simple product

information enough?

Can a reminder address intentional non-adherence?

Can a reminder address intentional non-adherence?

Intentional & non-intentional non-

adherence

Social withdrawal, avoidance, isolation

What about the patient‘s overall well-being?

What about the patient‘s overall well-being?

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Our beyond-the-pill excellence method ensures a strategic approach

Diagnose Define Design Implement

Nature of disease: e.g. no symptoms / difficult diagnosis etc.?

Stakeholders: Needs along the patient journey?

Competition: Minimum services required to match offerings?

Brand: Specific requirement e.g. injection or first dose monitoring?

Goal of the overall service strategy?

Fit with product portfolio?

Key components (breadth & depth of offerings) of service strategy?

How success is to be measured?

Priority steps & needs to be addressed with services?

How to co-create services with customers to ensure relevance and acceptance?

How to include internal cross-functional knowledge and input?

Priority steps & needs to be addressed with services?

How to co-create services with customers to ensure relevance and acceptance?

How to include internal cross-functional knowledge and input?

What factors drive the service model?

Which service strategy?

What services to offer?

How to implement the services?

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Diagnose: Full understanding of disease, competition and stakeholder landscape service implications

Example of Structured Analyis:

Competition Baseline to match services currently offered by competitors? Areas of differentiation?

Disease & Brand Nature of the disease & implication on service? Product fit with the current disease and therapy settings? Any product features presenting a need or an opportunity for service offerings (eg. injection, first dose monitoring)?

Stakeholders Physical, emotional & financial journey of patient – unmet needs & decision points?

Diagnostic

To understand the implications of the disease, brand, competition and stakeholder needs for the service model strategy.

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Define: A strategy and service model that best fits you

Limited OfferingGeneric services targeting one or few steps in the patient pathway

(e.g. benefits investigation)

Lev

el o

f C

ust

om

izat

ion

Low

High

Breadth of OfferingFew Many

Focused OfferingHighly customized services targeting

one or few steps in the patient pathway (e.g. emergency on-site diagnosis for acute indications)

Broad OfferingBundle of generic services targeting most steps of the patient pathway

(e.g. blockbuster offering for primary care indication)

Relationship OfferingComplete solutions that are highly customized and cover the entire patient pathway (e.g. complex chronic specialty indications)

Executive Insight Service Models:

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Design: Services that are truly relevant with ownership and commitment from your customers

Collaborate with stakeholders

along patient journey to fully understand needs and opportunities

Executive Insight‘s inclusive and collaborative Deep Dive Methodology

Co-create innovative solutions with you

by harnessing collective imaginative power

Process OptimizationDiagnosis Education/Training

Adherence / ComplianceLifestyle/Peer-to-Peer

MonitoringTreatment DecisionAwareness

Access

Tpyes of services created e.g.:

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Winning Beyond-the-Pill Service Strategy

Implement: Driven towards meeting key success factors

Take a needs-based approach

Patient/stakeholder’s (not the brand) perspective to address

needs along the patient journey

Consider ALL stakeholder groups

Other key players beyond HCP & patients e.g. care-

givers, pharmacists

Co-develop solutions with customers

Higher relevance and adoption of service solutions

Clarify ownership & resourcing

Allocation of funding and resources pre-launch as well as early affiliate involvement

Start early

Sufficient lead time for piloting & implementation with roadmap of comprehensive service solution well before launch

Leverage external partners

Multiple areas of expertise and multi-country execution

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Our experience is already helping to shape beyond-the-pill thinking in the market

Thought-leading publications: Founders of the beyond-the-pill group on LinkedIn:

http://www.executiveinsight.ch/publications http://www.linkedin.com/groups?gid=4383768&trk=myg_ugrp_ovr

Track record:

Beyond-the-pill projects with leading global pharma companies

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Call us to discuss how you can also develop & implement a winning beyond-the-pill strategy

Company address

Contacts

Meike WenzelMobile: +41 79 322 12 [email protected]

Executive Insight AGMetallstrasse 9CH-6304 Zug

Tel. +41 (0)41 710 71 [email protected]

Marc PesseMobile: +41 78 639 52 [email protected]

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