Wednesday, July 6, 2016

Licking and Garfield's Creative Work on Pharma Strategy & Payer Strategy

In 2011, I had the chance to write an article on personalized medicine with Susan Garfield, then at Bridgehead Consulting.   I am currently writing an article on the likely global reception for next-generation Alzheimer drugs, and during the research I ran across Susan again.

I highly recommend the article by Ellen Licking and Susan Garfield, "A Road Map to Strategic Drug Pricing," which appeared in the trade journal IN VIVO in 2015.  A copy is available open-access at her current company, EY (here).  They write:

  • Products come to market with clinical trial data and not real-world evidence.  Stakeholders may see them as "having potential" but "not proven value" at the time of launch...many products enter the market with a "value gap."
  • To accelerate the shift to proven value and bridge the value gap, biopharma should consider multi-stakeholder collaborations aimed at co-creating data to support innovative pricing models.
That's the teaser; see the full article.

The EY website also features an interesting two-pager, "The myth of the 'payer,' " by Roger Longman of Real Endpoints (company website here.)  Real Endpoints helps pharmas implement some of the ideas discussed by Licking & Garfield; its logo is "Preparing health care companies for today's value based economy."   Longman points out that there is no monolithic "payer" but different payers have different interests.  At the extremes, a consolidated payer/entity like the VA would view savings on drug costs and hospitalization equally.  On the other hand, a Medicare Part D plan and some other carved-out PBMs are only incented to save costs on drugs, regardless of the spillover on health or on hospital costs.   


For another take on strategic gaps in the way we've set up PBMs in the US, see here.