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Neil Grubert's closing remarks at the EPP Life Sciences Executive Briefing

The European Pricing Platform is Europe's number 1 pricing knowledge sharing platform.

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Neil Grubert's closing remarks at the EPP Life Sciences Executive Briefing

  1. 1. WWW.PRICINGPLATFORM.EU EPP Life Sciences Executive Briefing conclusions March 31, 2016
  2. 2. WWW.PRICINGPLATFORM.EU Closing Remarks from the Moderator What Are the Key Lessons Learned ? Conclusions and actions from the day…
  3. 3. WWW.PRICINGPLATFORM.EU Changing selection pressures in the market access environment require life sciences companies to adopt a range of responses Shift Required Action Value shift Understand multi-dimensional, customer-perceived value and create context-specific value Global shift Understand market heterogeneity and deliver broad value to global segments Holobiont shift Establish polycentric networks that aggregate capabilities and manage risk Systeomic shift Translate systems knowledge into an improvement in returns or a reduction in risk Information shift Adopt or adapt information technology to improve returns and reduce risks Trimorphic shift Focus strongly on NPD, SCM or CRM
  4. 4. How should the industry apply evolutionary theory to market access? • The six shifts are happening simultaneously, presenting enormous challenges to life sciences companies. • Companies may be able to occupy more than one peak at a time, but they are unlikely to be equally successful in all of them. • The future of the life sciences industry is speciation and extinction. • “Genetic engineering” is needed for market access excellence. • The industry generally does an outstanding job of applying science to practice. However, market access leaders need to be as willing as their scientific colleagues to apply real, rigorous management science to developing market access and pricing capabilities. WWW.PRICINGPLATFORM.EU
  5. 5. Will the industry respond positively to pricing selection pressures? • Launch sequencing to mitigate the impact of external reference pricing still appears to be considered the “gold standard” for price maximisation. • This strategy does not lead to profit optimisation, successful customer engagement or a sustainable business. • Notwithstanding major selection pressure changes, new approaches are conspicuous largely by their absence. WWW.PRICINGPLATFORM.EU
  6. 6. The industry needs to address capability gaps in three critical areas WWW.PRICINGPLATFORM.EU Optimising the area under the curve • Delays in access will reduce peak sales. • Return mix optimisation is critical: target margin in some segments, volume in others. Developing innovative contracting agreements • In commoditised categories, tendering, competitive bidding and exclusive contracting are becoming much more common. • Contracting must include term sheets, not just pricing. • The challenge is not to secure reimbursement through discounts, but to secure volume commitments and drive usage. Pursuing responsible and sustainable pricing • Launch sequencing must be ethically responsible. • The challenge of tiered pricing is not to set prices low enough to be affordable in low-income countries, but to be willing to walk away from wealthy markets that refuse to make a fair contribution to R&D costs.
  7. 7. Can the industry turn adversity into opportunity? • Social, economic and technological change will transform the healthcare environment in the coming decades. • Life sciences companies collectively have an opportunity to influence the changing environment. • Individual companies need to take action to ensure that they are organised not just to survive—but to thrive. WWW.PRICINGPLATFORM.EU
  8. 8. Look out for the email with this executive briefing’s presentations. Or become a participant at www.pricingplatform.eu for access to the largest pricing knowledge database in Europe. WWW.PRICINGPLATFORM.EU
  9. 9. WWW.PRICINGPLATFORM.EU Thank you for attending the EPP Life Sciences Executive Briefing The Executive Briefing is made possible as a collaboration with
  10. 10. We look forward to seeing you at the 6th EPP Life Sciences Forum 2016 in Montreux. September 20-21 2016. WWW.PRICINGPLATFORM.EU

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The European Pricing Platform is Europe's number 1 pricing knowledge sharing platform.

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