How can one determine the value of a drug that could potentially save millions of lives? Until now, pharmaceutical companies have struggled with finding an effective method to communicate the value of their drug for the various stakeholders. Each constituent, whether it’s the physicians prescribing the drug, the hospital administrators purchasing the drug and even the patient who uses the drug, all have particular requirements and interests. It is becoming clear that a new way of approaching the value chain, including how to communicate this value are becoming increasingly vital issues in the pharmaceutical industry.
With constricted budgets and heightened competition, pharmaceutical firms must start to build their own internal definition of value in order to create a more streamlined method to market access. In order to do this, each stage of the value chain will require measurable and pertinent health economic data to support decisions.
This is driving the movement towards developing Health Economic and Outcomes Research (HEOR) evaluation systems. In a study conducted by Cutting Edge Information, 64% of companies surveyed estimated increased spending in HEOR for 2012. It is evident that providing detailed results on the outcome of the effectiveness of a drug on patients can help to argument the value of this drug by showing cost reduction for further treatment and increased patient satisfaction.
It is all well to state that HEOR is an important method for arguing economic and patient- related value, but the challenge still exists of how to communicate this complex data, especially during the sales process. The debate is on about the commercial model in sales force and which provides the best method for pharmaceutical sales forces to communicate value and ultimately establish a contract.
This is where cloud-technology can provide a solution. Several software companies have tapped into this unique challenge in the pharmaceutical industry by developing web-based applications that can clearly communicate models which were once complex and abstract. BaseCase is one such company, who build easy-to-use interfaces that run directly from existing modelling tools such as Excel or TreeAge. These interfaces are built using an online platform that turns budget impact analysis, risk calculators and cost-comparison tools into interactive spreadsheet driven web-apps. These models can then be used throughout the value chain, but most importantly during the sales process when sales forces must argue the value of the new drug in the context of increasing budget constraints and regulatory pressure.
Cloud-computing technologies are now presenting an interesting solution for the value communication challenge, so try out a demo and decide for yourself!