Recently, we were among the thousands to descend upon San Francisco to either attend the JPM Healthcare Conference or one of the surround sound conferences. While still in shock over the $44 minimum to sit and have a cup of coffee in one hotel, it was an incredible opportunity to engage in conversations around the broader healthcare environment, the opportunities and challenges facing biotech and pharma, and to share our experience on what can be done to de-risk commercialization plans and improve the likelihood of launch success.
Industry turbulence continues with room for cautious optimism
There was a general mood of cautious optimism for investment in ’24, in comparison to a very tough year last year. At the Fierce Pharma conference, three key issues dominated the sessions:
- The Inflation Reduction Act (IRA) represents landmark legislation and is just one of many signals around pricing pressures that are likely to have a significant impact on the industry. Commercial leaders discussed how the IRA may impact thinking on an array of issues, including the sequencing of indications to launch and the need to demonstrate meaningful value.
- With the industry focused on innovation, everyone is talking about AI, with the most attention paid to the potential to enhance efficiency and reduce costs associated with drug development. The convergence of rapid developments in AI and pricing pressure will spur the pace of adoption as all players seek to drive efficiency.
- Driving efficiency and agility has sparked organizational transformation for many, with leaders recognizing that their organizations need to be comfortable with the pace of change and require a clear strategy to stay focused in a disruptive environment. Commercial leaders and marketers will need to adapt quickly and not rely on traditional playbooks.
Defining value earlier to drive launch success
With this environment in mind, we would observe that there is still too much room for a disconnect between drug development and commercialization. There is staggering investment in innovation and unmet need, yet a high percentage of launches underperform because of the challenging practical realities of the market environment. From years of experience counseling clients on how to improve product performance, we see a clear need for earlier and better investment in understanding how the patient and healthcare system define value and the market barriers that prevent patients from realizing a valued outcome.
Now, more than ever, it is critical to ensure that product development teams understand the full ecosystem of stakeholders and how to generate value in real-world settings to increase the likelihood of launch success.