One of the most important things for a pharmaceutical company to do is to critically evaluate its portfolio and pipeline to ensure that they are always consistent with their present cost structure. Doing this periodically helps companies be more proactive about identifying a need for either rapid business development or rationalizing of expenses.COMPLIANCE
The biggest untapped opportunity is the link between patient compliance, outcomes, and the total cost of care. When patients are truly compliant with their respective therapies—filling their prescriptions regularly and taking their medications as prescribed—their total cost for prescription drugs may rise, but the total cost of care declines due to factors including fewer complications, fewer emergency room visits, fewer hospital stays, and fewer doctor visits.
The benefit of improved patient compliance for many products can be an uplift in sales of 30 percent, or more—an enormous opportunity for the pharmaceutical industry, payers, and patients.
Many companies continue to suffer from a lack of true sales and marketing integration. Companies persist in the belief that silos are necessary to comply with regulations and to ensure functional excellence. Collaboration between silos not only enhances customer focus and productivity, but it also improves downstream implementation at pharma companies.
DIFFERENT COVERAGE MODELS
The emergence of drop-in or "minute" medical clinics in the retail sector (Wal-Mart and CVS have launched on-site medical clinics at their stores) has prompted some analysts to predict explosive growth in this channel. Anticipating the challenges of marketing to physicians and nurses in these venues; and experimenting with different coverage models today will be the key to long-term success in appropriately valuing, influencing, and tracking a new segment of customers.
Pharma companies may feel increasing pressure to make strong pharmacoeconomic arguments for their drugs. Authorities in some European countries already have been pushing companies to demonstrate how their products provide better value for money when compared with other possible interventions. European pharma companies that cannot make this economic case risk the government denying, or severely restricting reimbursement for their drugs. The current tone of congressional debates in the US about the cost of prescription drugs could mean that the industy here may soon face a similar situation. Pharma should be prepared, and even take valuable lessons from their colleagues in Europe.
Since 1983, ZS Associates has been a global management consulting firm equipped with a range of pharmaceutical and biotech experience. It specializes in sales and marketing consulting, capability building and outsourcing. It has helped multinational, midsize, and entrepreneurial companies define results-oriented sales and marketing strategies and put those strategy into action.
Jaideep Bajaj is managing director of ZS Associates. He can be reached at [email protected]