“Health Affairs” just published an analysis that showed economic returns from the development and marketing of pharmaceutical products (revenues less the cost of research, development, marketing and tax) declined through the 90s and 00s1. What’s more, returns on launches made through 2005-2009 (the most recent period analysed) have, on average, yielded a negative return. Suggesting, despite the market exclusivity afforded to innovative products, it now costs more to research and bring a medicine to the market than prospective lifetime revenues. In the medium to long term, an evolution of the model used to develop medicines is needed to improve returns and sustain current rates of innovation. In advance of these major changes, the short-term challenge is to improve returns by maximising revenues.
This goal can be reached by ensuring each and every launch maximises its potential.
In the past the effectiveness of the sales force was paramount, detailing was used to drive launch ensuring that Rep activity was optimally deployed and a product’s penetration in to the market was secured. In today’s commercial model effective launch planning is different, it means navigating the ever-changing market access requirements market by market. Failure to meet the stringent terms can result in a delay or even block the product’s access to the market, compromising uptake and consequently revenues. Like the sales force of a previous era, ensuring launch efforts and the worldwide team driving them are deployed effectively is critical. The effectiveness of all launch activities should be measured and monitored using digital tools that reveal transparently if launch activities have been successful.
Fortunately, as the commercial model has changed, there has been a simultaneous revolution in the digital tools that support pharma launch readiness. The old, complex, and expensive sales force tools are not the ideal support for launch optimisation. Today, leading pharma companies are investing in cost effective, strategic business intelligence tools that map and monitor all aspects of the pharma launch readiness and market access strategy. They enable launch managers to align the global and local requirements and thereby strengthen their decision making with up-to-date information on the wide range of activities across markets and functional groups.
TRiBECA® Knowledge is a leading innovator in this space, developing digital business intelligence tools that support today’s complex launches. Many leading pharma companies are already implementing and gaining competitive benefits from these intelligent, customised solutions.
Please download TRiBECA’s launch readiness checklist to see if your organisation is meeting the market’s new standards for pharma launch readiness and request a no obligation launch planning tool demo that shows how digital business intelligence tools can support your launch challenges.
1) Ernst R. Berndt, D. N. (2015). Decline In Economic Returns From New Drugs Raises Questions About Sustaining Innovations. Health Affairs , 34 (2245-252).