A clear value strategy is key to the success of any product attempting to enter the healthcare market; defining the right strategy should lead to the perfect positioning for your product and therefore optimal access and reimbursement.
Companies should strive to create a tailored and powerful value strategy, but reaching this goal can be hampered by lack of clarity in the overall business objective for the product and misalignment on the true needs of the healthcare system and the patient.
When considering the value strategy for a product, a company must first ask themselves; “What are the business objectives for this product?” Business objectives must be clear, holistic, and reflective of what the company could realistically hope to achieve in the context of the treatment landscape; time needs to be spent defining these business objectives before investing time planning the details of product launch.
The global value strategy can then be shaped to create optimum success for their product within this broader context of the overall business objectives. For example, if one of the business objectives is to aim for fast access, there may be a need to sacrifice a price-premium and introduce the product to the market at a reduced price to help ensure quick reimbursement and fast uptake. The current and predicted future landscape should shape these business objectives. For example, are there competitors the company is racing to market, or can more time be taken to generate stronger data which translates to greater value long-term?
Factors external to the company also play a part in shaping the value strategy. Global policies shape the landscape into which the product is entering, and therefore can both aid and limit what the company is trying to achieve; if the current policies are not helpful, what does the company need to do to change them? If the policies are helpful, how can the company capitalize on them? The same can be said for local market policies; is the disease a key focus for the government? If so, then the treatment will face different challenges than if the disease is not high on the local agenda. Understanding global and local market policies is important when defining the value strategy for the product, as this then acts as the framework for all market access activities.
As the end-user of the product, patients must be kept at the forefront of product innovation and market access strategies. Patient advocacy groups and charities play a big role in ensuring that the patient voice is heard and may influence policy makers.
This is especially true with particularly rare and difficult-to-treat diseases. From a business perspective, the aim is to achieve access in order to benefit the patient and at the same time get a return on investment; therefore, understanding patient need and how this influences reimbursement and patient access is important. A well-thought-out value strategy that considers what the patient wants, as well as needs, can help ensure that patients have access to a product that truly provides benefit.
Ultimately, the value strategy for your product should define where you want to play, and why you think there is the potential to do so. The value strategy acts as a concise overview of the planned positioning, and it should be focussed on business objectives and current market access opportunities.
At Parexel we understand value strategy, and have a clear perspective on how to achieve market access using the value strategy as the framework for all activities. Contact us at email@example.com to discuss how we could transform your value strategy today.
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