| Executive Brief
Optimizing Your Brand’s Value
Proposition with Market Access Stakeholders
Developing a value proposition that resonates with payers and organized providers
requires understanding the key drivers of value from the customers’ point of view.
Only one in five launched products is successful enough for the biopharmaceutical company to recoup its R&D costs,
according to a report in Health Economics. Considering it takes more than 10 years and $2.6 billion on average to
develop a drug,1 the stakes are high for brand marketers to optimize their brands’ value propositions with market
access stakeholders. To do so, they must pinpoint the current and future drivers of brand value in their therapeutic
market, whether they are new or well established in the market.
Recognizing What Market Access Stakeholders Value
Building a compelling value proposition for a brand requires deep knowledge of what brand attributes market access
stakeholders value most. These market access stakeholders include not only health plans, but also medical groups,
and in some cases pathway providers. Ideally, this effort should begin no later than Phase II, with brand teams
continuously assessing their value propositions and where they stand.
Which brand attributes matter most? Product attributes are certainly relevant when building a value proposition, but so
are resources, programs, and contract terms (see Figure 1). Building an effective value proposition also means taking
into account market access stakeholder perceptions of how a brand’s value measuresup against the competition
based on these key attributes.
Figure 1
Understand What Market Access Stakeholders Value to Drive Your Brand’s Performance
Product
Attributes
Resources
Programs
Contract
Terms
Competitor 1
Competitor 2
Competitor 3
Health Plans
Medical Groups
Why value propositions matter for new brands
Recent product launches demonstrate the need for a strong value proposition. Take the asthma/COPD market,
for example. Seven brands launched recently have not secured third-tier access on commercial formularies. In oral
oncolytics, brand use is highly restricted (see Figure 2, page two).
1
PhRMA 2015 Profile
© Health Strategies Group. All rights reserved.
| Executive Brief
Figure 2
Brand Still Have Access Challenges 12-24 Months After Launch (% Commercial Health Plans)
96%
100
80
60
40
60%
45%
3rd Tier Access
Restrictions on Utilization
31%
20
0
Asthma/COPD
Oral Oncology
Why value propositions matter for established brands
In today’s dynamic marketplace, what stakeholders value is constantly changing. Clinical trials can produce new,
meaningful data that grab payers’ attention, shifting the way they manage access. Financial assistance programs
or specialized patient education websites can fill a need for providers, improving a brand’s value proposition. At the
same time, discounting and new contract offers can have a pronounced impact on how organized providers as well as
payers perceive a brand’s value.
Brand teams need knowledge that will help them look confidently ahead as market events shake up the landscape
in the next 24 months. This knowledge also can help brand teams identify threats and opportunities to their brands’
market access value propositions in the future.
Creating or Refining a Brand’s Value Proposition
When a brand team optimizes a brand’s value proposition, payers and providers see high clinical and economic value.
Drivers of brand value are likely to differ between payers and providers. As a brand team identifies the optimal drivers
for both segments, restrictions loosen, reimbursement improves, and market access increases:
To improve their brand’s value proposition, brand marketers can develop or adjust strategies for their brand, such as:
ƒƒ Creating launch messages that highlight key product attributes to optimize stakeholders’ perceptions of a new product’s value,
ƒƒ Building programs and resources that stakeholders value, such as patient and provider education, and
ƒƒ Targeting contract offers to key physician groups or health plans.
Gaining Alignment on Market Access Strategies
Developing a brand’s value proposition by first understanding customer value drivers can help a brand team gain
alignment with internal stakeholders. Given the significant investment in time and resources required for product
development, this cross-functional alignment can be an important success factor for brands. A value proposition with
early stakeholder buy-in helps a brand team narrow its strategies to those that will have the greatest impact, creating
the foundation for a brand’s success in the future.
About DecisionEdge|Market Access Brand Value Proposition
DecisionEdge|Market Access Brand Value Proposition pinpoints the current and future drivers of brand value in your therapeutic market so you
can optimize your brand’s value proposition with market access stakeholders. The service answers questions such as:
ƒƒ How do market access stakeholders perceive competitive brands on key attributes such as efficacy, safety, and net pricing?
ƒƒ What types of programs and resources do market access stakeholders value in your therapeutic market?
ƒƒ How will the elements of an effective market access value proposition in your therapeutic market change in the next two years?
ƒƒ How can you optimize your value proposition with market access stakeholders?
The service covers eight therapeutic markets: asthma, breast cancer, COPD, hematologic cancers, lung cancer, psoriasis, psoriatic arthritis,
rheumatoid arthritis To learn more, visit our website at www.healthstrategies.com/Market-Access-Brand-Value-Proposition.
© Health Strategies Group. All rights reserved.
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