Biopharma Embraces Customers in New Systems-Thinking Environment
By: Patrick Jordan, MBA, MA | July 30, 2013
Historically, the biopharmaceutical industry has been product-focused. Companies delivered safe and efficacious drugs to market and in that environment innovation and market demand gave rise to blockbuster products. But then three things happened that changed the value proposition of drug development forever.
In response, biopharma companies have been become more customer-oriented, focusing not only physicians and patients, but also on payers and risk-bearing entities. This new customer-driven definition of value is causing them to become more systems-focused, as they look for ways to collaborate with other stakeholders to integrate and share data for their mutual benefit.
In survey of industry stakeholders conducted by Quintiles, more than 80% of biopharma executives said that in the next three to five years they expect to forge long-term joint agreements with payers and strategic alliances with healthcare systems.
That’s a positive trend for the outlook on future drug development. These collaborations will enable the industry to identify innovative ways to rein-in costs and eliminate waste at both ends of the development and commercial spectrum, in part by factoring commercial and reimbursement goals into the planning process, rather than addressing them on at the commercialization stage when it is arguably too late.
Participating in such collaborations will require a dramatic change in their processes and culture. But those who persist will ultimately develop the trust, shared objectives, and alignment on goals that will ultimately reduce costs and improve outcomes for the patients they serve.
You can learn more about our survey regarding the industry’s move to a systems-thinking environment by downloading The Collaboration Mandate.