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As pharmaceutical industry budgets grow tighter and the urgency for a revised commercial model that offers patients and other stakeholders an expanded value proposition grows, many pharmaceutical comp

By Anonymous (not verified) on Jan 28, 2009

As pharmaceutical industry budgets grow tighter and the urgency for a revised commercial model that offers patients and other stakeholders an expanded value proposition grows, many pharmaceutical companies are refocusing their attention on patient non-adherence. According to Cutting Edge Information, patient non-adherence to prescription medications costs the pharma industry more than $30 billion in lost revenues.

In a new report, Pharmaceutical Patient Adherence and Disease Management: Program Development, Management and Improvement, Cutting Edge Information says that in addition to the obvious commercial gains, the establishment of patient adherence and disease management programs, pharma companies can position themselves as an integral partner in patients healthcare and bolster their public images.

Structures and investment
The group reports that the average drug foregoes 36% of its sales due to adherence issues. That certainly makes for a large opportunity for pharma companies, says Eric Bolesh, lead researcher on the report for Cutting Edge Information.

To win adequate resources necessary to launch a patient adherence and disease management program, pharma teams often championed by the brand team must prove the value of these initiatives to senior management, says Bolesh. Although it can be challenging to get buy-in from key stakeholders, evidence is emerging from industry case studies of the value these programs are having on compliance rates and on products bottom lines.

Program success, he says, relies on cross-functional support and buy-in. In most cases, among the 18 organizations studied by Bolesh and his team, brand teams spearheaded these programs. But other groups, including medical affairs, sales and market research, reimbursement, regulatory and patient relations also play an important role.

Staffing support and investment levels also determine the level of return on adherence programs, Bolesh says.

Companies must consider a number of factors when determining the resource allocation levels it will devote to these programs, he stresses. These include the drugs lifecycle stage, the competitive atmosphere, the drug/disease states unique characteristics, the reimbursement environment, the programs intricacies (such as number of media channels and customization), program reach and others.

The group says that companies must begin to look at adherence and disease management programs as more than mere marketing plan add-ons. Programs are becoming part of a full circle of services expected by payers, doctors and patients, Bolesh says.

In fact, products not supported by adherence and disease management programs in Canada and some European countries are finding themselves at a distinct competitive disadvantage, the group says.

Program Management
On average, it costs a pharma company 62% more to attain a new patient than to retain an existing one. But those companies that take the time to capitalize on the patients theyve already worked so hard to initially attain will earn significant returns from their efforts, says Bolesh.

Bolesh says part of the challenge in developing an effective campaign is understanding the reasons for non-adherence and effectively designing a program to address these issues. Market research, the group stresses, is key to basing programs on a solid understanding of patient needs and preferences.

By working to set and achieve clear program goals and objectives, teams can develop tailored campaigns, the group says. And by incorporating milestones that keep patients motivated, companies can stay in tune to patients progress on a continual basis.

The challenges of program development can include: providing customized messages, persuading stakeholders of a programs value, overcoming barriers of trust and effectively communicating with end-users. But Bolesh says some companies are certainly implementing successful, multi-faceted campaigns. In fact, in some markets, he says, these programs have become a cost of entry.

Thirty-eight percent (38%) of the companies studied by Cutting Edge Information engage in patient adherence programs, while 62% back their portfolios with disease management programs.

Successful companies, the group says:
Invest adequate resources to perform vital pre-launch program activities, such as in-depth market research and competitive intelligence
Understand their audiences and provide customized messages via preferred media touch points
Evolve their programs on a constant basis to upgrade them and to incorporate the latest innovations
Recognize that these programs require long-term commitment, in terms of both resources and measurements
Strive to improve their programs through feedback loops and other performance measurements

The bottom line
Companies have found that they earn patients respect by positioning themselves as a sound medical resource and a champion for patients of a particular disease, says Bolesh. Establishing non-branded disease management programs is one way companies are able to demonstrate to patients that they care about patients health above profits. Patients are drawn to companies that they respect and trust.

Non-branded disease management programs, the group says, can act as cause branding for companies. And 56% of the companies surveyed by Cutting Edge say they have non-branded disease management programs in place. While these programs continue to grow in popularity, Bolesh says, branded adherence and disease management initiatives are still the more common type of program pursued by pharma companies.

Disease management and patient adherence programs not only make sound business sense for products bottom lines, but they also help bolster the pharmaceutical industrys image by illustrating companies social responsibility, he says. As healthcare costs skyrocket, pharma companies can play an important role in helping to alleviate some of these issues through their adherence and disease management programs.

For more information on the report, visit the groups website at www.PharmaPatientAdherence.com.

Author: Lisa Roner, editor, eyeforpharma