One in four health plans already has at least one outcomes-based contract with a drug maker, and another 30% are in negotiations, according to Avalere Health. The trend is moving toward drug company payments being dependent on drug performance or “value” rather than volume. Pharma companies such as Amgen, Sanofi, Novartis, and Merck have recently finalized value-based contracts with payers. Each of the top five U.S. health insurances and a quarter of pharma execs surveyed by PwC have already signed at least one value-based contract.
Whether you are for or against value based pricing (VBP), it is becoming more widespread. In addition to pressure from payers and other stakeholders, 54% believe it’s somewhat or very likely that federal or state drug-pricing laws will be enacted.
Success Strategies for VBP Pressure
It will no longer be enough to create and market an effective drug. The industry is changing because of the increased focus on outcomes. In the past, the end goal of many pharma brands was getting patients on a drug. Stakeholders today expect not just an effective product, however, but a brand that continues to offer value throughout the entire patient journey. Pharma marketers will have to develop new support services and technologies, explains Paul Darling, a managing principal of ZS Associates. Brands that can do that will be more successful long term. Because it is easier to retain a customer than to find a new one, pharma brands that want to stay competitive must recognize the growing importance of adherence, compliance, and patient education.
For this reason, additional groups who influence patient behavior also grow in importance for marketers. Intouch Solutions, a well-known award winning pharma marketing agency, recommends paying more attention to and empowering NPs, PAs, nurses and pharmacists because these groups represent brand touchpoints. Especially in regard to adherence and patient education, your marketing efforts can help NPs, PAs, nurses and pharmacists to achieve better patient outcomes with your brand.
If you plan a value-based strategy now, you can be ahead of the competition and well positioned for the financial rewards as VBP gains momentum. Will you seize the opportunity?
Please comment below and subscribe to automatically receive a notice so that you don’t forget to read the next topic.