Recent market research report by leading research agencies suggest that emerging markets are becoming increasingly important for pharma companies. However, to be successful in the market, it becomes essential for companies in the pharmaceutical industry to shift from a marketing and sales-focused model to an access-driven commercial model in the next decade.
Negotiation and execution of a successful pricing and reimbursement arrangement for each product that has become the real barometer for success - not only for the specific product but for the business as a whole.. As it emerges more and more as industry norm, it’s critical that organizations begin to consider the mechanics for a pay-for-performance pricing structure and the potential impacts to operations and long-term strategy.
Few key industry trend drivers are:
1. Predictive analytics to fuel precision medicine
2. Artificial intelligence to gain speed in medicine
3. Exploration of innovative pricing and reimbursement schemes with payers.
4. Innovation challenges in the pharma industry
5. Drug Pricing and Quality
The challenges become more globalized than localized for the industry:
• Healthcare policy reforms
• Impact of new technologies on pharma
• Slower growth rate in emerging markets
• Shift to Value Based Payments
• Challenging Biosimilars
• Reengineering to Industry 4.0 standards
• AI driven drug discovery and design
And hence the focus remains tightly centered on accurate forecast of shifting demand and appropriate pricing strategy.