Pharmaceutical Executive Europe IMS Health Economics Supplement - December 2007 - (Page 9)

Adding Value It is possible (and high time) to transform HEOR studies from academic exercises into key components of the commercialization strategy. Elisabeth H. Hazard, Karen Joy and Cindy Eisenschenk explain. he days of US comedian Rodney Dangerfield serving as the unofficial poster boy for health economists who “don’t get no respect” may be coming to a close. For the past 20 years, health economists have been relegated not only to the ‘back room’ in pharma companies, but to the ‘back of the back room’ — their contributions have been seen as commercially irrelevant. Health economics studies have been labelled as purely ‘academic’ in the pejorative sense of the word. In this era of pricing pressures and access barriers, pharma companies have come to appreciate the importance of demonstrating and articulating the value of their products. Health Economics and Outcomes Research (HEOR) should be an integral part of developing and implementing a value-based strategy and can deliver useful and relevant demonstrations of value by implementing two key steps. The first one is process-oriented: health economists must be involved in commercial development planning, beginning with the proof of concept. The second step is skills-oriented: health economists must learn how to communicate their findings in concrete, business-oriented terms and to expand their messages to multiple audiences. With the right strategic and tactical approaches, companies can at last begin to fully realise the value of their HEOR investment, which runs to approximately $500 million a year for the industry as a whole. T The value of ‘the value development plan’ Ultimately, to realise the value of their products in the marketplace, companies must systematically work through a value demonstration process: firstly, deciding what that value is; secondly, proving it through appropriate research; and thirdly, communicating the documented value in a way that resonates with internal and external audiences alike. The first step is to create a value development plan (VDP) for every product and every product indication. Essentially, the VDP is a strategy document that includes a clear, evidence-based set of recommendations on how the product’s value will be Figure 1: The Value Process Value Development Plan Value Demonstration Value Communication Effective communication requires something effective to communicate www.pharmexeceurope.com 9 http://www.pharmexeceurope.com

Table of Contents for the Digital Edition of Pharmaceutical Executive Europe IMS Health Economics Supplement - December 2007

Pharmaceutical Executive Europe IMS Health Economics Supplement - December 2007
Contents
Budget Impact Analyses: BIAs: The Fifth Hurdle?
Evidence and Effectiveness: Redressing the Balance
Commercializing HEOR: Adding Value

Pharmaceutical Executive Europe IMS Health Economics Supplement - December 2007