How to create the perfect value proposition
In times of austerity measures, where affordability is more important than value, creating a value proposition the HTAs can’t say no to is critical. Here we explore some tips on how to do that based on a recent eyeforpharma Payer Webinar.
The European healthcare system might look like a labyrinth to a pharma company, but it’s important to recognize that the stakeholders are becoming integrated and more often than not they work as a network, which considers four questions in their decisions. First, does it work? This is a holistic assessment of the benefits/risk ratio of a drug at launch and over time. Second, does it add value to society? That is, is the efficiency of the healthcare system improved by addressing a given unmet medical need. Third, is it a reasonable cost to the public? Finally, is it the best way of delivering the service? All those need to be addressed in a value proposition, say Barbara Jaszewski, Vice President Global Pricing and Market Access, Lundbeck, and Christelle Saint Sardos, Senior Director of Market Access and Economics, Sanofi Pasteur MSD together with Alexander Natz, Director General, EUCOPE during the Payer Webinar, developed in conjunction with the Payers Forum on 1st-2nd October.
The perfect value proposition
Historically, Saint Sardos said, value in healthcare was focused on individual patient outcome, on performance of a particular drug, leading to cost-effectiveness pricing. “Presently, value proposition needs to be addressed on a community level, with evidence showing how a product will impact the system and its management,” she added explaining that the impact is measured in terms of the effect of the new product/technology on the systems’ efficacy, resource optimization disease management, and impact on society as a whole. Most importantly, the new addition should be a valuable innovation that contributes to the economic growth.
In addition to that, Saint Sardos stressed, decision-makers need to be engaged. Although not all of them will be open to innovation, they need to be involved in the creation of solutions, which might be finance-based agreements to allay budget impact concerns; generation of real-world evidence to allay performance concerns; and value-added services to facilitate the implementation of the health care system.
Market access evidence trends
Evidence standards are rising and becoming more explicit. The demand to demonstrate superiority – not just non-inferiority – is increasing. In addition to that, you need to provide evidence based on a very strong model, preferably from a real world setting. Most importantly, the result must be statistically and clinically significant, looking also at patient subgroups with unmet medical needs, said Jaszewski.
It is also the case that payer demand for post-approval evidence is on the rise. What’s needed is the development of formal relationships with regulators, payers, and HTAs to establish common evidence requirements, with an increasingly broad and sensitive post-market detection of adverse events. “There is a greater emphasis on discerning heterogeneity of treatment effects using post-market subgroup analyses,” Jaszewski explained.
Another market access trend is the increasing development of alternative clinical trial designs and sophisticated modeling to complement and eventually substitute traditional RCTs.
In addition to that, there is a growing demand for observational data, which will compliment efficacy information in post-marketing surveillance.
How to connect all those? You have to remember that creating value proposition is about communicating why your offering is worth paying for, in quantitative terms. Always remember to show what is the main benefit of your product to your customer.
Key Messages From the Webinar:
- Payers need to be engaged in the creation of solutions
- Value proposition needs to be addressed on a community level
- Demand to demonstrate superiority is increasing
- Alternatives to RCTs are being developed
- Creating a perfect value proposition is about communicating why your offering is worth paying for
Since you're here...
... and value our content, you should sign-up to our newsletter. Sign up here