Realizing Value Propositions in the Product Launch Planning Process

Pharma Market Research Conference PMRC, San Francisco

June 12, 2024 | 12:30 PM PST

In US pharma launch’s complex and competitive environment, achieving success requires deep market understanding and a patient-centered approach. According to industry analyses, between 40 to 70% of launches fail to meet analyst expectations by a significant margin, and the launch period is critical to the trajectory of a product’s performance throughout its patent life. These statistics reveal a challenging truth: the market’s requirement for value is steep, and understanding it is paramount.

Successful product launches must solve two main needs to thrive in the healthcare system. First is developing a robust value proposition that addresses the Triple Aim – improving the patient experience, reducing cost, and enhancing population health – while also considering how patients will perceive the product’s value. We detail how to prepare for a successful Triple Aim product launch in a separate article here. The second is realizing these value propositions in real-world settings, a task often complicated by numerous pitfalls.

Building an Effective & Meaningful Value Proposition

The development of a value proposition is often hindered by several factors. Key among these is neglecting to anticipate how the ecosystem of policies, payers, and providers will define and pursue value. Many teams understand how each stakeholder audience will think about where the product fits and what kind of benefits it provides, but they fail to connect the dots to create an integrated value proposition. This can lead to siloed and sometimes ineffective strategies.

Moreover, the value proposition for patients is often developed too late in the planning process to affect evidence generation and ends up being primarily centered around healthcare providers (HCPs). This approach tends to overlook the significant role that patients, who bear both the health impact of the condition as well as the burden of the out-of-pocket costs, play in the healthcare decision-making process. Furthermore, teams often fail to define clear patient populations where value propositions align across all stakeholders, which can result in a lack of clarity in the market about when and how to use the product.

Achieving Real-World Impact

The real-world fulfillment of value propositions is equally full of challenges. Often teams are aware of potential barriers long before a product’s launch but, in the rush to market, deprioritize investments needed to build the programs and services to truly affect the barriers.  This oversight can lead to the absence of necessary support programs and services at launch, creating a vicious cycle of negative experiences for both HCPs and patients.

To overcome these obstacles, an integrated plan that addresses both internal silos and external barriers within the healthcare ecosystem is essential. This requires moving beyond traditional patient journey mapping to more deeply understand the root causes of barriers in the journey, as well as aligning cross-functional teams to address barriers effectively.

Global Considerations

On a global scale, pitfalls can be even more pronounced, with failures often arising from averaging strategies across stakeholders in multiple markets without considering the differences in how these stakeholders behave in local market ecosystems. Understanding local market archetypes is critical in determining whether a brand can offer a compelling value proposition to payers, providers, and patients.

The Importance of a Patient-Centered Approach

To avoid these common pitfalls in product launch planning, companies must adopt a truly patient-centered ecosystem perspective. This involves integrating insights across multiple stakeholders to inform key strategic decisions and outputs, ensuring that value propositions are not only well-defined but also can be achieved in real-world settings. By adopting such a comprehensive approach, companies can enhance their chances of success, turning potential obstacles into opportunities for growth and impact.

Link to the Full Agenda