David Melvin explains The Value Crisis in Pharma on PM360.
Pharmaceutical marketers are tasked with proving the value of a product based on price and measurable improvement in the health of a patient. This can be challenging, especially for new products without years of clinical study to back up their benefits. It can be even more difficult when payers silo a product by price and don’t take into account long-term savings in the total healthcare of a patient.
The article covers the major hurtles marketers must face when creating a value proposition for pharma brands:
- insurance companies influencing the landscape
- the prices of drugs have increased disproportionately to overall healthcare costs
- the media and political sphere influence the market