LIFESCIENCELEADER.COM JUNE 2014
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Figure1
limited revenue and growth due to
patent expiries, regulatory issues, promo-
tional saturation, and restricted access
to physicians
external pressures such as high public
expectations, patient dissatisfaction, pres-
sure from investors, and safety concerns
pricing issues including reimburse-
ment challenges, pressures from buying
groups, and high costs to patients.
A strategic approach to a value-driver's
assessment encompasses five key market-
facing considerations:
1 price sensitivity: What is the relation-
ship between price and demand?
2 performance: What is the product's
cost/benefit relationship?
3 profile: How does the product compare
to the competition — current and future?
4 practice/organizational economics:
How do pricing and volume impact the
economics of the organization?
5 positioning for value: What attributes,
for which patients, provide the greatest
value and fulfill unmet needs?
When modeling stakeholder decisions,
biopharma companies typically optimize
the profile and strategy for each group
in isolation. This "divide-and-conquer"
approach to research does not measure
the real impact that each stakeholder's
P H Y S I CI A N S
*Source: 2011 The New Health Report, Quintiles
Amount in % / Sums may not add to 100% or be equal
to components due to rounding
19
40
10
28
M A N A G E D C A R E
23
43
13
20
1
2
PATI E NTS
2
4
30
33
31
B I O P H A R M A
38
30
23
10
In Your Own Words, How Would You
Def ne "Value" In Healthcare?
Mentions both cost & outcomes
Mentions cost
Mentions outcomes
Mentions neither
Not sure
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