How well has your business transitioned from a volume-driven to a value-driven model?
Pharma has made the shift from volume to value, but just how successful are these new commercial models proving to be? Customer first or an alternative stakeholder centric model? Focus on agility or take time on engagement? Push hard on digital or build a hybrid commercial approach? There are no obvious answers—but there are plenty of new ideas and innovative approaches, some of which are gaining traction.
In April 2018, we conducted in depth interviews with 7 commercial experts from various top tier pharma companies including Novartis, GSK and Astellas. The key issues they discussed provide unrivalled insight into the commercial models currently adopted in each business.
- What different commercial models are there? What is the rationale behind each model and how does it align with core business objectives?
- Which pharma companies are adapting best to the demands of the new commercial landscape and what are the key factors driving success?
- Where should stakeholder-centricity and engagement fit within the new commercial model? How could various stakeholder groups be prioritised for optimum effect?
- Harnessing digital within the new commercial model. Who does it well and what strategies are they adopting?
- Evidence generation: Who is doing what? What role does RWE play within each of the various commercial models? How should it translate into commercial activity?
- What is the best way to measure the success of value-based commercial models?How do measures differ from model to model? What positive impacts are being seen?
- What future changes should pharma prepare for? How might individual models evolve; what further commercial trends are taking hold?
What to expect from this report
If you've been wondering how other companies are responding to the multitude of changes shaking traditional pharmaceutical businesses to the core, now you can find out. We've asked the questions you want to ask and detailed all the answers in this report:
This is 100% new qualitative research based on expert interviews conducted in April 2018.
- We identified the 7 core issues keeping pharma business leaders awake at night
- We explored these via an average of 20 targeted questions put to 7 leading experts
- Their responses provided 97 unique new insights
- Insights are supported by 138 directly quoted comments
Example insight included in New Commercial Models: Benchmarking Pharma Companies
New business models bring about a culture of innovation and engagement. This is especially the case at Astellas. Astellas conducts regular surveys of employees to determine whether a culture of coaching and engagement has been developed. The company also develops a range of KPIs for its six-step model to encourage employees to identify areas for improvement.
Example quote included in New Commercial Models: Benchmarking Pharma Companies
"In a culture where we are trying to create more accountability with our teams, we do not have armies of representatives marching in anymore, where we had three or four people promoting the same brand. We have only one or two now, so from a cost perspective we have achieved some savings there. In addition, we have a Customer Experience Team and a Health System Team, which are more portfolio-based. Instead of having different people focused on patients with respiratory illnesses, patients with diabetes, or patients with cardiovascular diseases, we have a patient hub across all of our products and therapy areas."
The expert panel for New Commercial Models: Benchmarking Pharma Companies
- Indranil Bagchi, VP & Franchise Head, Global Value & Access, Novartis Oncology
- Peter Barschdorff, VP Commercial Insights (US Pharma & Vaccines), GSK
- John Gerow, SVP of Client Solutions at Ashfield, part of UDG Healthcare plc
- Theis Husfeldt, Associate Director in Commercial Operations, Astellas Pharma, Europe
- Anonymous 1, US Commercial Business Director, Top 20 pharmaceutical company
- Anonymous 2, Commercial Director, Teva Pharmaceuticals
- Anonymous 3, Regional Lead New Commercial Model, Top 10 pharmaceutical company
Why buy now?
Pharma companies don't usually find change easy or swift to incorporate. Business was done successfully on a product volume basis for so long, it's understandable that a period of playing 'catch-up' is needed. In this new, more complex world, there are many commercial choices to make. And wrapped up in all of it is the need to keep flexible and agile as the landscape evolves. With the very foundations underpinning how pharma does business still in a state of flux, it's more crucial than ever to understand how your competitors are working—otherwise how do you compete?