Abstract
Today' s physicians are rapidly losing their influence over patients' drug
utilization decisions and unfortunately a large number of bio-pharmaceutical
companies have failed to recognize that third-party payers, such as government
and commercial organizations, now control the vast majority of prescription
drug expenditures. In fact, it is estimated that third-party payers in the
Managed Markets sector currently control more than 80 percent of patient
access to prescription drugs in the United States.
Continued commercial success of pharmaceutical products depends largely on the
ability of bio-pharmaceutical companies to evolve their MMMR (Managed Markets
Market Research) structures to work effectively in the current payer-driven
environment. A successful MMMR Structure should provide managers with tactics
to easily anticipate and act upon the needs and wants of these newly empowered
third-party payers. The companies who are refocusing their marketing
strategies to strengthen their relationship with these Managed Markets
organizations will see the greatest impact in their product' s commercial
success.
This Best Practices, LLC benchmarking report identifies the Market Research
structures and activities that best support the Managed Markets function in
gaining payer access and insights around pharmaceutical products, as well as
captures executives' best practices and lessons learned for working
successfully in the current payer-driven environment.
INDUSTRIES PROFILED:
Biotech; Pharmaceutical; Health Care
COMPANIES PROFILED:
Amgen; Johnson & Johnson; Alcon; Solvay Pharmaceuticals; Novo Nordisk; Jazz
Pharmaceuticals; Xanodyne Pharmaceuticals; Ther-Rx; GlaxoSmithKline; Sepracor;
Abbott Laboratories
STUDY SNAPSHOT
Best Practices, LLC fielded an online benchmarking survey with managers and
executives representing Managed Markets or Market Research functions at
leading pharmaceutical and biotech companies. Analysts then conducted
in-depth interviews with selected research participants. The survey and
interview collected benchmark data on the following aspects of Managed
Markets Market Research (MMMR) organizations:
- Current and optimal structure and organizational fit
- Effectiveness of current structure
- Pre-launch research objectives
- Key global MMMR activities with greatest impact on strategic choices
- Timing of activities by product development phase
- Activities most effective for generating insights
- Activities most effective for accessing hard-to-reach partners
- Principal drivers of MMMR activities
- Percentage of research that is qualitative vs. quantitative
- Top Three most important types of pre-launch studies
- Anticipated changes in resource allocation levels
- Trends in use of vendors to gather payer information
- Projected changes in MMMR focus
- Best practices and pitfalls
KEY FINDINGS
Among the findings that emerged from this research were the following:
No Single Structure Is Optimal: Many structure types can work
effectively for the Managed Markets Market Research function, and benchmark
partners use several different models. A more critical success factor than
the structure type is the level of research staff knowledge and understanding
of the Managed Markets sector. Developing staff specialization and expertise
is the key to making any structure begin to work from an MMMR perspective.
Manage Resource Competition: Brand team and Managed Markets research
projects generally have different targets (physician/patient vs. payer) and
find themselves competing for resources and attention. Avoid MM priorities
being defused or fragmented through resource competition. This can be a
critical pitfall.
Table of Contents
- EXECUTIVE SUMMARY
- Introduction
- Objective & Research Approach
- Project Participants
- Figure 1.1 - Companies Participating in Benchmark Study
- Figure 1.2 - Company Size: Revenue & Number of Products
- Figure 1.3 - Industry Experience of Study Participants
- Definitions & Abbreviations
- Key Findings & Insights
- STRUCTURE & ORGANIZATION
- Introduction
- Organizational Fit
- Figure 2.1 - Market Research is the Primary Functional
“Home” for MMMR
- Figure 2.2 - Group Reports into MM Organization at 50% of Firms
- Figure 2.3 - MMMR Planning & Leadership Are Usually up to Directors
- Figure 2.4 - Majority of MMMR is Performed within MR Dept
- Function Can Be Effective in Multiple Locations
- Figure 2.5 - MMMR Can Be Effective in Variety of Functional Homes
- Dedicated Market Research Resources Improve Effectiveness
- Figure 2.6 - MMMR Structure Can Influence Effectiveness
- Figure 2.7 - Dedicate MMMR Staff & Resources to Seed Effectiveness
- Figure 2.8 - MMMR Resource Allocation our of Line with Payer Import
- Figure 2.9 - Effectiveness Limited by Competition for MR Resources
- “Highly Effective” Company Characteristics
- Figure 2.10 - Most Rate Their MMMR Functions Only “Somewhat
Effective”
- Snapshot of “Highly Effective” Organizations
- FOCUS OF MANAGED MARKETS MARKET RESEARCH
- Introduction
- Pre-Launch Objectives
- Figure 3.1 - Reimbursement Needs are Top Pre-Launch MMMR Focus
- Snapshot: Additional Pre-Launch Objectives
- Study Types
- Figure 3.2 - Pricing is the Most Important Pre-Launch MMMR Study Type
- Research Drivers
- Data Types
- Figure 3.3 - Market Research is Primary Driver of MMMR Activities
- Figure 3.4 - Qualitative Research Is Primary Focus for Managed Markets
- EFFECTIVE ACTIVITIES & APPROACHES FOR PAYER ACCESS & INSIGHTS
- Introduction
- Activities with High Decision Impact
- Figure 4.1 - Ad Boards & Team Meetings Have Greatest Strategic Impact
- Best Approaches for Insights from Overall MM Sector
- Figure 4.2 - Activities for Best Insights into Overall MM Sector
- Best Approaches to Hard-to-Reach Payers: Access & Insights
- Successful Access to Hard-to-Reach
- Figure 4.3 - Account Manager Provides the Best Access to Hard-to-Reach
- Figure 4.4 - Demonstrative value to Increase Access to Hard-to-Reach
- Figure 4.5 - Additional Approaches for Hard-To-Reach
- Successful Insight Development from Hard-To-Reach Payers
- Figure 4.6 - Approaches for Best Insights from Hard-to-Reach Payers
- Viewpoints on High-Rated Approaches
- Payer Advisory Board Viewpoints
- Ad Board Success Strategies
- Figure 4.7 - Payer Advisory Board Success Strategies
- Figure 4.8 - Account Manager Role in MM Sector is Expanding
- Figure 4.9 - Peer-to-Peer Team Meetings Improve Access to Payers
- High-Level In-Person Meetings: Viewpoints
- Timing of Key Activities
- Figure 4.10 - Pre-Clinical Stage
- Figure 4.11 - Managed Markets MR Activities Peak During Phase 3
- Timing Trends
- Figure 4.12 - Companies Shifting Focus to Earlier & Extended MM
Research
- MANAGED MARKETS MARKET RESEARCH ROLES
- Figure 5.1 - Summary of Primary Managed Market MR Activities & Roles-1
- Figure 5.2 - Summary of Primary Managed Markets MR Activities & Roles-2
- Figure 5.3 - Summary of Primary Managed Markets MR Activities & Roles-3
- CURRENT TRENDS IN MANAGED MARKETS MARKET RESEARCH
- Figure 6.1 - Increasing Resources & Use of Account Managers
- Figure 6.2 - Use of Warranty or Guarantee Limited by Uncontrollable
Things
- BEST PRACTICES, PITFALLS & SUCCESS FACTORS
- Participants' Best Practices
- Internal Communications and Alignment
- Improving Payer Access and Insights
- Figure 7.1 - Tips for Optimizing Payer Discussions
- Timing of Market Research Activities
- Figure 7.2 - Success Factors
- Pitfalls and Lessons Learned
- APPENDIX: FULL SOURCE DATA
- Figure 8.1 - Pre-Launch Objectives
- Figure 8.2 - Impact of Global Activities on Strategic Choices
- Figure 8.3 - Activity Effectiveness for Overall Insights
- Figure 8.4 - Activities for Hard-to-Reach Partner Insights
- Figure 8.5 - Activities for Accessing Hard-to-Reach Partners
- Figure 8.6 - Global Activities Conducted at Each Development
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