In the pharmaceuticals industry “Market Access” is a key term everyone is talking about. Despite causing a buzz, it’s apparent there isn’t a clear definition on the correct approach to manage it to its true potential.
Market access isn’t a new concept; what is fairly new is its significance and the systematic way in which to maximize a drug’s performance under the conditions of today’s pharmaceutical markets.
Market Access is Important
Phama Market Access is important as the perpetual changes within the industry need addressing. Healthcare costs and advancements in drug therapy are always increasing, forcing payers to control product endorsement. New ways of controlling costs are also being devised, such as risk share and volume limits. These changes mean any future product needs to have a market access strategy built into it during its initial stages of development.
New Marketing Approach
This requires a new marketing approach that will have organizational implications for pharmaceutical companies. Because the market access is always developing, the learning and understanding in stakeholders’ requirements has become an important factor of the product management through the product lifestyle. The stakeholders’ willing to pay outside of the market is another important factor the research departments have to consider. Marketing departments must develop a way of understanding the cost impacts of products within different country systems.
Although “Market Access” is ostensibly about costs and prices and health economics, it’s more about the techniques and the processes developed within an organisation to put out the right messages to the stakeholders at the crucial time for any new products.
The pharmaceutical industry’s dynamics also raise the urgency of market access. By today’s standards, it’s vital companies meet the needs of their stakeholders – approval doesn’t necessarily mean reimbursement, however, and price setting is a lot more complicated than yesteryear.
To address these approval/reimbursement processes, companies must maintain a constant relationship with regulatory bodies and stakeholders from the early stages of the process. The strong competition from the generic drug companies is constantly building and premium pricing is becoming a dangerous path because of these confident cost-cutting claims by health care regulators.
The targeted market and the product category and its position in a therapeutic area heavily influence the market access strategy. Market status can be made clear by the composition of stakeholders and their influence, healthcare environment, and by their sales drivers.
Over all, Phama Market Access strategy development should be considered vital to the marketing process, and any assessments on regional markets and health care should be performed early on. If this approach is taken, any clinical development teams can tie together feedback from product and indication assessments to target key stakeholder values.