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Managed Markets Market Research- Payer Access & Insight Report Summary

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Commercial success of pharmaceutical products today depends increasingly upon understanding the needs of commercial and government payers in the highly-influential Managed Markets sector. Recognizing …

Commercial success of pharmaceutical products today depends increasingly upon understanding the needs of commercial and government payers in the highly-influential Managed Markets sector. Recognizing this paradigm shift, savvy bio-pharmaceutical companies are seeking to improve their access to payers to develop the best possible Managed Markets insights before product launch.

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  • 1. Managed Markets Market Research: Effective Structures & Activities for Gaining Maximum Payer Access & Insight Best Practices, LLC Business Excellence Board Strategic Benchmarking Research1 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 2. Managed Markets Market Research:Effective Structures & Activities for Gaining Maximum Payer Access & Insight Table of Contents Field Study Overview Key Findings Universe of Learning: Benchmark Class Structure Preferences Research Types That Deliver Greatest Insight Pre-Launch Objectives That Focus Research Innovative Practices for Developing Insights Timing of Key Managed Markets Market Research Activities Key Trends, Best Practices & Critical Pitfalls Appendix of Full Source Data & Analysis 2 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 3. Research ObjectiveThis client-driven research was conducted to help pharmaceutical and biotech companiesbuild effective Managed Markets market research functions that can drive access to—andgain critical insights from—the increasingly influential Managed Markets sector. Study Objective & Methodology Key Topic Areas Optimal structure and organizational fit Best Practices, LLC undertook this of the function responsible for Managed research to identify market research Markets market research (MMMR) activities and structures that are most Major pre-launch objectives for MMMR effective for gaining access to – and gathering insights from – the increasingly Top global Managed Markets research important Managed Markets sector. activities by product development phase This research was completed using two Most effective activities for accessing hard-to-reach channel partners insight and intelligence gathering approaches: an online benchmarking Primary categories of MMMR survey of Managed Markets executives at Most critical pre-launch study types leading pharmaceutical companies and in- Trends in MMMR staffing and focus depth field interviews with selected survey participants. Best practices and executive insights3 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 4. Definitions & Abbreviations The following definitions and abbreviations are used in this study: Definitions 1. Managed Markets: The function within pharma that is concerned with actions of payer (payor) organizations – including both commercial and government providers of prescription drug coverage (e.g., Medco, Cigna, United Healthcare, Medicare, Medicaid, Veterans Administration.) 2. Managed Markets market research (MMMR): The study of payer organization perspectives on topics such as meaningful endpoints, health outcomes, definition of innovative medical products, pricing requirements, formulary access/positioning, contracting, and reimbursement. Also includes research on payer companies and agencies and on current and future trends in the payer and managed care environment. 3. FTE: One FTE (full time equivalent employee) is the equivalent of one person working full time. Example: 2 people each working ½ time=1 FTE. Abbreviations • MMMR=Managed Markets Market Research • MM=Managed Markets • MR=Market Research4 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 5. Sample Key Findings The following key findings and insights emerged from the field surveys and executive interviews: Key Sources for Developing MM Insights: Ad boards and account managers (setting up team meetings) are the most effective MM activities and yield the best insights. Ad boards become most effective when innovative approaches are applied to engage diverse payer viewpoints instead of re-using the same small group of traditional payer participants. Role of Account Managers Is Expanding to Access MM Insight: Account managers’ roles are expanding due to the increase of Managed Markets influence in the pharmaceutical industry today. Account managers are seen by most participants as the most reliable method for accessing hard- to-reach partners. MM account managers play different valuable roles depending on the type of product, its market- entry order and its clinical profile.5 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 6. Universe of Learning: Participating CompaniesEleven leading pharmaceutical companies participated in this field research. Tenorganizations contributed to the performance benchmark survey, and six participatedthrough in-depth “lessons learned” interviews and discussions. Ninety-percent ofparticipants are at the director level or above. Participants in Survey Only Survey Only Participants in Survey & Interviews Survey & Interview Interview Only Participants’ Job Titles: EVP, Commercial Operations; VP, Managed Markets; Senior Director, Business Improvement; Executive Director, Managed Markets (2); Director, Managed Markets; Director of Marketing Research; Director of Strategy—Managed Markets; Associate Director of Managed Markets; Manager, Payer Analytics; and Director of Marketing—Managed Markets.6 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 7. Ad Boards & Team Meetings Have Greatest Decision ImpactSix out of ten participating companies rank payer advisory boards and use of a teamapproach to account meetings as the global MMMR activities with the highest impacton strategic choices or decisions. Q. Which of the following global activities have the greatest impact on strategic choices? % Very High Impact (Rated "6" or "7") Payer advisory boards 60% Team approach to critical account meetings 60% Market research 50% ` 40% Health outcomes/economics data collection Field interviews with individual payers 30% Interviews with internal account managers 20% Managed markets industry meetings & events 10% % Responses 0% 10% 20% 30% 40% 50% 60% 70% (n=10) Ranking Scale: 1=No impact to 7=Very high impact7 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 8. Payer Advisory Board Success Strategies Payer advisory boards are a high-impact, high-value activity for capturing Managed Markets insights – in part because companies have developed strategies to overcome limitations of this vehicle. Payer advisory boards can be highly effective for gathering Managed Markets insights if companies use innovative strategies to overcome some inherent limitations. Limitations: The same few people are on the boards every time There is insufficient diversity among board members Some important payers strictly prohibit participation because of compliance issues Strategies: Target a wider range of people within a payer company: “Most of the time were all recruiting the vice-president of pharmacy or director of pharmacy. Look to people who are in charge of putting together dossiers. Who are those people and what is the information they look at when theyre putting together a package for the P&T committee? Find medical directors working on a tech assessment that you should be targeting, because theyre going to give you a very different perspective than are pharmacy directors. Pharmacy directors are thinking about placement on the formulary of a class of drugs and how you compete in that class of drugs. Medical directors will be thinking about whats medically necessary and whats not medically necessary.” – Interviewed Executive Reduce the size and change the name: “The big ad boards tend not to give you quality. One or two dynamic people often dominate and shut down the conversation. A group of four or five maximum gives us far better dialog. We don’t call them ad boards either—they’re focus groups now. We have had better success with smaller groups, not any different than getting a small group of physicians together at a society meeting—to give feedback. “ – Interviewed VP8 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 9. Managed Markets MR Activities Peak During Phase 3Phase 3 is the peak time for most global activities in Managed Markets market research,although some companies begin selected activities as early as the Pre-Clinical stage ofproduct development. Earlier payer activities are a growing trend. Q. During which product development phase does the Managed Markets MR staff perform each activity? 100% Field interviews with individual payers Health outcomes/economics 80% data collection Interviews with internal 60% account managers % companies Managed markets industry meetings & events 40% Market research 20% Payer advisory boards 0% Pre - Phase 1 Phase 2 Phase 3 Launch Team approach to critical (n=8-10) Clinical account meetings9 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 10. Sample Best Practices: Structure & CommunicationBenchmarked companies shared some of their best practices for Managed Marketsmarket research activities. Structure/ Internal Communication Segment customer groups so that answers are more meaningful based on segment Keep management informed on challenges payers face. (“The more you can give senior management insight into the legitimate challenges that managed care plans face as they try to balance their cost picture, the better off you are. Communicate this right down to the rep level.”) Hire staff who have worked in the Managed Markets sector. Develop internal and external networks of MM experts. Align with internal government affairs group to be alerted to and to help shape future policy. Take brand team members to payer meetings.10 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 11. About This Research11 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 12. About This Research This presentation is the result of primary client-driven research conducted by Best Practices, LLC. See www.best-in-class.com for more on our research services. This benchmarking study is intended to be a directional indicator on the Managed Markets market research function. Clients have used our benchmark research in the following ways: • Gap Analyses: Identify areas for improvement. • Business Cases: Prepare a proposal for change. • Training: Learn about new areas, industry trends & standards. • Resourcing Decisions: Assess staffing, budget & structure. • Sharing Research: Satisfy internal customers with unique data.12 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 13. Serving your Research NeedsIf you want to visually compare your data with that of this study’s benchmark class, getmore research on this topic, or you want to sponsor a study, see below.1) Customize this Presentation: We can chart and present your organization’s metrics in comparison to this study’s benchmark class.2) Access more Client-initiated Research: If you purchased this study, you may be eligible for a credit toward membership. To learn what you can access, do an advanced search at www.bestpracticedatabase.com.3) Conduct your Own Study: Let our analysts assist you in designing your own questions for an on-line survey and/or interview. www3.best-in-class.com/ResearchConsulting Best Practices, LLC 919-403-0251 ● bestpractices@best-in-class.com13 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC
  • 14. About Best Practices, LLC Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class companies. Best Practices, LLC research provides key directional indicators, proven business practices and executive insights to support organizations seeking to achieve best- in-class business performance. Best Practices, LLC 6350 Quadrangle Drive, Suite 200 Chapel Hill, NC 27517 (919) 403-0251 bestpractices@best-in-class.com www.best-in-class.com14 Copyright © Best Practices®, LLC BEST PRACTICES, ® LLC