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edit:casino time:2019-01-11

In 2019, the home office will start getting smaller. Pharmaceutical innovators are increasingly looking at models that push decision-making and resourcing into regional authorities at a moment when their healthcare provider counterparts are doing the same.

3. The science is increasingly more complex: Many of the highest-potential innovations in the pipeline answer unmet needs in largely elusive disease states. Gene and cell therapies, novel approaches to rare disease and drug replacements, like digital therapies, are about to crowd the market, creating gaps in education for physician and payer alike.

As a final analysis, we compared SG&A spend of companies that had a successful launch to those companies that did not. Specifically, the median SG&A spend of successful companies was ~120% of their launch-year forecasted revenue in L-3 and L-2, ~210% in L-1 and ~330% in the launch year. In contrast, the median SG&A spend for unsuccessful companies was less than 40% of their launch-year forecasted revenue in each of the years preceding launch and only 60% in the launch year.

Dynamic 1: the ultimate gamble

Launches were once planned around a promised hockey stick of growth that took a low curve up the market-entry blade until it hit an inflection point and quickly started a steep climb to the blockbuster finish.

4. The economics are more complex too: Demonstrating an economic benefit is table stakes for today’s launches. Regulators, payers and large, organised customers expect to see an evidence package that includes impact on cost of illness, burden of illness, quality of life and impact on caretakers. Innovators are increasingly incorporating these health economics endpoints into phase 2 trials, and throughout phase 3 and real-world data collection.

So, how do pharmaceutical companies serve these increasingly distinct regional decision-makers? They create their own responsive and right-sized regional teams. The first wave of change was giving regional sales mangers operational control of resources (not just sales accountability). In the next wave, marketing and evidence will go regional, and sales will take on an even more resource- flexible model.

Syneos Health recently compared the investments of 19 biopharmaceutical companies that were launching their first products. It found that companies that spent a minimum of 75% of their launch-year forecasted revenue during L-1 had higher rates of launch success. Even more importantly, not a single company that spent less than 75% of their launch-year forecasted revenue in L-1 achieved a successful launch.

This is an extract from Syneos Health’s Health Trend Ten Report, see

Regional sales managers will move from making decisions on headcount to field force mix (e.g., reimbursement specialist, clinical educator, sales rep, etc.), contact centre strategy and multichannel resources. Some of those contact centres will become hybrid regional hubs where teams make outbound calls/ emails, host virtual-detail appointments and go into the field to solve problems at specific practices. Others will turn to local case managers who will be focused on navigating all regional and global resources across evidence, marketing and sales.

Four specific market dynamics are changing the future of launch:

Today, increased innovation, competition and payer control have changed the expectation for sales performance. In this new era, initial value has to be realised more quickly, and sustainability needs to be projectable over time. That’s leading to new metrics that redefine performance.

By pushing the investment later and later, companies are missing out on the value creation cascade that typically starts three years before launch and increases significantly one year out.

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