The pharma industry is now experiencing a period of change characterized by factors such as changing patient demands, new technologies, and regulations. In contemporary healthcare, increasing prophylactic and curative costs, due to aging populations and the prevalence of diseases such as diabetes and cardiovascular diseases, are set to increase global healthcare expenditure beyond $47 trillion in 2030. However, this growth is accompanied by challenges because more than 60% of health industry participants consider shifting from the FSS to value-based care delivery models.
New commercial models have to be developed and new ideas have to be incorporated into the pharmaceutical companies’ commercial strategies in order to succeed: digital tools, personalized medicine, and patient-centric approaches. Success is not about just building a new pipeline of drugs, it is about partnering with payers, providers, and tech disruptors to manage desired health outcomes.
In this blog, we will look into how organizations in industries can harness data analytics, real evidence, and cross-industry collaboration to remain competitive. Read on to learn how best pharma commercial practices are emerging for pharma to play a proactive part in providing sustainable and effective solutions to the healthcare needs of the future.
Health Systems And The Evolving Healthcare Environment
Several challenges act as a thorn in the flesh of pharmaceutical companies in the current global healthcare system. Of all the changes underway, the most profound one is the transformation of focus to value-based care. Today’s healthcare consumers are not interested in products, prices, and services as those terms for drugs and related services have been defined and delivered by the pharmaceutical industry up until now.
It’s no longer about ‘getting your hands on drugs,’ but rather about ‘getting your hands on treatments that, reliably, and predictably improve patients’ health over the long term at a ‘reasonable and appropriate’ cost.’ This shift demands that pharma’s responsibility is not limited to the performance of their products, but the efficiency of the product in improving health and reducing costs.
Secondly, new business models have emerged, and the overall environment in which entities provide and consume health care is increasingly complex. Personalized medicine, digital health technologies, the implementation of artificial intelligence, and machine learning technologies are topics that are disrupting current healthcare systems. It becomes a challenge for pharmaceutical companies to fit in this growing market and produce value that should suit the ever-increasing and sophisticated patient population.
The Use of Digital Health Technologies
Digital health technologies are rapidly modernizing the practice of delivering and organizing care. In the recent past, patients have benefitted from digital tools such as EHRs, mHealth Apps, and Telemedicine. This implies that these technologies should be incorporated into the commercialization structures of pharmaceutical businesses to increase the value propositions of their products.
For instance, pharmaceutical firms can utilize the value of digital health platforms to track patients’ compliance with the drugs, as well as offer immediate feedback. Besides, the application of digital technologies may accelerate the clinical trials of new drugs and treatments. A report from the market research firm IQVIA shows that digital technologies in clinical trials can cut costs by 30% and time to market by 20%.
While developing digital health technologies, pharmaceutical companies can enhance patient communication, efficiency, and effectiveness and get detailed information about their products in real practice.
Investing in Value-Based Contracting
As the focus now gradually moves towards value-based care, this also impacts the way pharmaceutical companies should approach the topic of how to price and how reimbursement should be attained. Old paradigms of purchase volume and unit price are shifting towards outcome-based models of reimbursement for a given drug. This means that the pharma companies have to prove the value of the products by showing how they work to save lives and decrease the costs of health care.
Value-based contracting can include outcome-based pricing, risk sharing, and performance-based contracts. Similarly in such contracts, drug manufacturers can guarantee a lesser price or rebates in case the products are not performing as expected. This approach is in harmony with the best interest of the pharmaceutical company, payers, and healthcare providers because it is the patient value proposition.
Working Together Across the System
As the healthcare system integrates, pharmaceutical companies are finding themselves needing to work with different players such as the payers, providers, technology firms, and regulators. The partnership enables the pharma firms to deal with the tedious regulations, expand to the new markets, and come up with the right solutions to the unmet patient needs.
There is one more area that in my opinion requires synergy – the creation of individualized treatment plans. Genomics companies, diagnostic firms, and healthcare providers should be closely partnered with pharmaceutical companies, and with the help of modern scientific technologies, it is possible to devise therapies that are personalized for a patient’s specific genetic makeup. This approach has the potential to enhance patients’ conditions as well as lower overall healthcare expenses by providing the right treatments to patients.
Transform Your Pharma Strategy with Newristics’ Expertise
The pharmaceutical industry is at a crossroads. That is why in order to maintain sustainable business models and achieve successful outcomes, several trends have to become a direction of commercial strategies of companies: patient centricity, digitalization, value-based care, and multisectoral cooperation. These strategic approaches are beneficial not only for the provision of long-term value for patients but also for the configuration of new roles for pharmaceutical companies in the healthcare sector of the future.
This is where Newristics’ solutions are considered to be the industry’s best for pharmaceutical companies to deal with the changes in the healthcare environment. Newristics is the market leader in pharma messaging services, and they specialize in content creation, market insights, and messaging insights. When integrating behavioral science with messaging AI, Newristics fine-tunes multi-channel communication with patients and healthcare providers.
Newristics has been successfully implemented across the top 20 pharma companies and hundreds of pharma brands to guide commercial strategies based on emerging trends. They equip the pharma companies to ensure they come up with effective communication strategies that help them foster improved results and increase their market share. To know more about them, visit their website at www.newristics.com.
