We have entered a new reality in healthcare.
The recent announcement of the first 10 drugs subject to Medicare negotiations under the Inflation Reduction Act (IRA) is an act of commitment by the current administration in its pursuit of drug reform—even in the face of litigation. In light of these changes and their implications, pharmaceutical manufacturers will need to rethink their launch strategies to ensure they are well positioned for the future.
While the IRA was passed in the spirit of creating a sustainable healthcare system by reducing the burden of drug cost on patients and the government, we cannot overlook the profound consequences it will have on the development and commercialization of new therapies. The provisions allowing Medicare to negotiate drug prices after just 7 years for self-administered drugs and after 11 years for physician-administered drugs will undoubtedly expose new challenges for pharmaceutical companies faced with delivering a return on investment while maintaining patient-centricity.
This disruptive force of the IRA will directly affect new product launches. Compressed life-cycle timelines and profit margins in this new environment will only increase pressure to accelerate commercial outcomes. Simply put: To deliver on corporate expectations, manufacturers will need to drive faster uptake at launch.
That’s why now, more than ever, organizations should take critical steps toward rethinking their marketing strategies, particularly for new product launches.
Step 1: Accept the new reality and evaluate exposure
Step 2: Embed cross-functional integration early into long-term strategic planning
Step 3: Redefine flawless execution
While the new healthcare reality will differ for every product, companies that instill an appreciation for the IRA into the fabric of launch planning will be better prepared to navigate the uncharted waters ahead.
Cameron Izadi can be reached at email@example.com.