Healthcare Insights - Simon-Kucher
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Healthcare Insights A publication for the clients of Simon-Kucher & Partners 2020 - Volume 12, Issue 1 Colourbox/- INSIDE THIS ISSUE ◃ Comprehensive commercial alignment: the key to brand forecast accuracy Actual sales miss the revenue forecast by an average of 50 percent – an alarming number. What can pharmaceutical companies do to achieve their desired commercial performance and improve forecast accuracy? Account for ATU status in France when building your local and European P&MA strategy The Temporary Authorization for Use (ATU) program allows manufacturers to generate revenue even before a drug is officially launched. However, the program is undergoing significant changes in France – particularly in terms of eligibility criteria. How should companies effectively integrate ATU in a European P&MA strategy? Key account management: tackling the challenges of a dynamic pharma market The market environment for pharmaceutical companies is constantly changing, requiring a new approach to key account management. What are the key measures to make use of revenue potential and drive growth by improving KAM? and more...
CONTENTS P&R BRIEFS USA 07 France 07 Spain 08 Switzerland 10 UK 11 Japan 12 China 12 Brazil 13 FEATURES 15 Comprehensive commercial alignment Account for ATU status in France 22 Key account management 29 Introducing our new colleagues 34 About Simon-Kucher & Partners 36 SIMON-KUCHER & PARTNERS EXECUTIVE EDITOR ARTICLE CONTRIBUTORS Rebecca Ford DISTRIBUTION Nathan Swilling Diane Cosset Gabriela Honda Prerna Kakkar Jonathan Haugen Patricia Lavina Oksana Prysiazhniuk ASSOCIATE EDITORS Nick Keppeler Hugo Li Bettina Liesenfeld Christopher Barr Clementine Legros Manuela Martin Rachel Pope Emily Choate Lilia Meddeb Mia Marrazza Goekce Muege Cil Madhurima Das Jens-Christian Oelker Josselin Meylan Mia Marrazza Raf Onclin Ana Mozetic Bonn Office Ryan Murphy Willy-Brandt-Allee 13 Tyler Perez Jens Mueller Eric Wan 53113 Bonn, Germany Jeremy Winkler Mathilde Pereira Fangting Yu +49 22 8984 30 Lais Schoenacker P&R BRIEFS CONTRIBUTORS Robert Spieker GRAPHIC DESIGN Boston Office Fan Chen Mariana Torgal Genevieve Solomon One Boston Place Inigo Cubillo Alice Tregrossi Suite 3301 Nicole Peterson Madhurima Das Na Wei Boston, MA 02108 Judith Flecke Chris Wu +1 617 231 4500 Callum Foden Fangting Yu Please send inquiries to: LSCommunications@simon-kucher.com www.simon-kucher.com
Annual European Medical Technology Strategy Forum Advanced revenue models for profitable growth: Monetizing value in a new era Radisson Blu Zurich Airport, Switzerland, February 11, 2020 The MedTech industry has traditionally always experienced successful growth largely driven by a continuous launch of new innovations. Yet, constrained budgets on payer and provider sides has led to a decrease in willingness to pay and acceptance of good enough products. This growth gap, coupled with increased expectations from the investor community, has forced many MedTech companies to rethink their revenue models and find new avenues for profitable growth. Best-in-class companies have started to develop and extract value beyond the core product portfolio. Some have even taken the step of redefining themselves from product to solutions providers. Common among them is that they redesign their revenue model to de- liver unparalleled value to the customer by solving a clinical and/or economic need. These include, among others, enhancing value add services, monetizing integrated digital solutions, establishing win-win contracting models or forward integrating to care delivery. Join us for the Simon-Kucher & Partners European Medical Technology Strategy Forum in Zurich, where industry representatives and experts from Simon-Kucher & Partners will share insights, practical approaches and best practice examples on new revenue models through monetizing beyond the core. Attending the forum will provide you with valuable insights on: Current trends and challenges in the MedTech space Industry best practices on new revenue models Practical approaches on how to monetize beyond the core Successful implementation of new revenue models Industry Experts Michael Erdtmann Mike Genau Dr. Cosmin Bordea Michael Fetahi Laursen Judy Han Senior Director Sales SVP Managing Director VP, Head of BD Senior Regional Manager Consultant EMEA SPI Germany EMEA Global Sales Excellence Healthcare consulting Johnson & Johnson Medtronic Fresenius Medical Care WS Audiology Roche Diagnostics Simon-Kucher & Partners Joerg Kruetten Dr. Gerald Schnell Omar Ahmad Raf Onclin Jan Bordon Global Head of Health Senior Partner Managing Partner Partner Senior Director care and Life Sciences Simon-Kucher & Partners Simon-Kucher & Partners is a global consulting firm with more than 1,400 professionals in 39 offices worldwide focusing on TopLine Power®. Founded in 1985, the company has more than 30 years of experience providing strategy and marketing consulting and is regarded as the world’s leading pricing advisor. To find out more, go to www.simon-kucher.com www.simon-kucher.com
Your Market Access and Pricing (MAP) function plays a pivotal role in a product’s success. Is your organization set up to seize opportunities and face challenges? Are you meeting all the requirements to future- proof the MAP organization to ensure success? iStock/alex skp Market Access Excellence (MAXX) Scorecard: A self-assessment for Simon-Kucher’s clients Take Simon-Kucher MAXX survey to get immediate results on how your MAP function compares to best in class benchmarks with a performance score and areas for improvement. Survey link: www.simon-kucher.com/en/market-access-excellence-scorecard/intro For additional questions, please reach out to: Stephan Schurz: stephan.schurz@simon-kucher.com Fangting Yu: fangting.yu@simon-kucher.com
YOUR ROADMAP TO PROFITABLE GROWTH June 23–24, 2020 Amsterdam, Beurs van Berlage www.topline2020.com #TopLine2020 Contact us: TopLine2020@simon-kucher.com +49 228 9843 335 Check out our video and get a glimpse of what’s to come!
Unique keynotes About TopLine 2020 In-depth TopLine 2020 deep-dives into the drivers of top-line growth, such as case marketing, pricing, sales, digital strategies, and business models. Through panel discussions, master classes, hands-on roundtable sessions, and studies keynotes, this two-day conference will unveil growth opportunities for all types of enterprises. Don’t worry, there will be plenty of time for networking in our industry lounge or during the boat ride to the exclusive networking dinner! Be inspired by keynote and panel discussions, multi-dimensional sessions, exclusive one-on-one meetings, and master classes Discover new trends, methods, and insights that have never before been released to the public Experience first-hand how the most brilliant minds in business have grown their top lines Why should I attend? This two-day conference is designed for those who want to ensure sustainable profits and satisfied customers in a digital world. If you’re in a role that focuses on growth strategies, marketing, product development, pricing, or sales, you can’t miss TopLine 2020! Interactive sessions Exclusive industry lounge
P&R briefs: Recent developments in global pricing & market access USA targets the top 125 drugs by spend it is unlikely to impact newly launched products. Knowing that a significant price CMS drug price negotiation: reduction may be in the future once the sales build up to Is it truly a negotiation? a certain threshold, would manufacturers launch at even The House Democratic leadership is pushing forward higher prices in anticipation of the effect of this bill on the with a proposed plan to reduce drug prices: the Lower future prices of their products? How will this impact their Drug Costs Now Act of 2019,a released on September international pricing strategies? ▵ 19th, 2019. This bill includes the establishment of several programs and requirements, primarily aiming to limit the prices of top-spending drugs. One of the key programs France proposed by this bill is the Center for Medicare and Med- icaid Services (CMS) negotiation of maximum prices for Changes to nATU program certain drugs, which is currently prohibited by law. Un- Over the years, the ATU program in France has become der this program, the CMS must negotiate the maximum one of the key considerations for a manufacturer’s EU P&R prices for insulin products and at least 25 single source, strategy. In an evolving P&R environment, where the path brand name drugs that do not have generic competi- to market access can be long and complicated, ATU sta- tion that are among the 125 drugs that accounts for the tus granted by the French National Agency for Medicines greatest national spending or greatest spending under and Health Products Safety (ANSM) provides rapid access Medicare Part D and Medicare Advantage. The US prices opportunities for drugs without a marketing authorization would be tied to six international markets: Canada, Aus- or those undergoing P&R negotiations. Only drugs that tralia, the UK, Japan, Germany, and France. The negoti- target serious or rare indications without available appro- ated US price should not exceed 120% of the weighted priate treatment alternatives and presumed efficacy and average price, i.e., average international market price (AIM safety data can benefit from the ATU program. Besides price), across these six countries and should target at the obtaining a rapid market access, the ATU program also lowest net average price in any one of the six countries. enables a manufacturer to set the drug price freely. This The penalty for not reaching a price agreement with the generates substantial strategic appeal for manufacturers, CMS within a defined period of time would be additional considering the international price referencing implica- tax that starts at 65% of sales in the US for the drug in ne- tions across EU and the potential for early revenue. gotiation and rises by 10% for every three non-compliant months until the excise tax reaches 95% of its US sales. Typically, two types of ATU can be granted: nominative ATU (nATU) or cohort ATU (cATU). While nATU is pa- If enacted, this bill would essentially force the drug man- tient-specific and granted at the request of individual phy- ufacturers into price agreement with the CMS, with a like- sicians, cATU is designated for a group of patients at the ly much lower price tag for the US, possibly lower than request of the drug manufacturer. The requirements and the AIM price, unless that price is lower than 95% of the eligibility criteria differ slightly between the two, with cATU current US price. Further analyses need to be conducted being somewhat more restrictive. to understand the true impact of this bill. For example, the negotiation-eligible drugs only include single source With the growing strategic importance of ATU status, both drugs. However, this may exclude some brand name the number of drugs granted ATU and their prices have medicines that have generic competition but the prices risen, leading to a significant budget impact with costs ex- are not impacted in a significant way. As the proposed bill ceeding >€1B per year for the French healthcare system. In an effort to offset the burden and continue this program a https://www.congress.gov/bill/116th-congress/house-bill/3 Simon-Kucher & Partners Healthcare Insights | Recent Developments in Global Pricing & Market Access 7
sustainably, the French authorities have been slowly intro- ducing initiatives to reform the program. In its most recent Spain iteration, French Social Security Law (LFSS) for 2020 im- The Spanish Ministry of Health has plemented two new changes for the nATU program: published an action plan to promote 1. Additional monitoring mechanisms / conditions: the use of generics and biosimilars Stricter eligibility criteria have been rolled out for The key priorities and work streams of the Spanish Minis- nATU, mirroring requirements for cATU status. For ex- try of Health are uncertain, due to current political instabil- ample, nATU will now require drug safety and efficacy ity in Spain. With four general elections and four different to be “strongly presumed” (instead of “presumed to Ministries of Health in the last years, the Spanish Health- be favorable”) and the clinical trial to be “ongoing” in care System has needed to adapt to the changing political France (instead of “ongoing or submitted”). Addition- environment. ally, the number of nATUs authorized per product will now be capped. However, having a sustainable Healthcare System remains a key priority for the Ministry of Health. In this context, the 2. Repeal of “free pricing” for nATU: The Ministry of Ministry has proposed an Action Plan to promote the use Health will now determine the compensation rates of generic and biosimilar drugs. This is expected to lead for nATU drugs rather than the manufacturer, but this to an increase in competition among manufacturers and price is not expected to be published. Manufacturers eventually reduce pharmaceutical expenditure. should still be able to freely set the price charged to hospitals, but will have to pay back the difference ver- The key measures proposed in the Plan are the following: sus the compensation amount set by the MoH (free Actions related to P&R setting of generic and biosimilar pricing will still apply for drugs with cATU status). drugs: The nATU program serves more than 2.5 times the 1. Voluntary discounts within the Fixed Reference patients in cATU program. The high prices set by the Price (FRP) System: Products within the same recent nATU drugs propelled the above changes, reference group will no longer be required to have which may now impact P&R negotiations in France. the same price. Upon creation of the group, all prod- It remains to be seen if the French ATU program can ucts (originator and generics/biosimilars) will need preserve its strategic appeal. to have the same price (reference price), but after- wards, manufacturers can offer discounts. These For an in-depth overview of recent ATU changes voluntary discounts will not be considered for the and its implications, please refer to page 22 of this reference price recalculation the next year. issue. ▵ 2. Dynamic prices: Price of the drugs within an FRP group will be re-negotiated based on volume of original and biosimilar sales vs. the total sales of the active substancea. 3. Reference groups by ATC-4: The Plan would create reference price groups based on ATC-4 drug classification (i.e., chemical subgroup) instead of ATC-5 (i.e., chemical substance). For example, currently infliximab drugs, including the originator (Remicade) and its biosimilars (Inflectra, Zessly, Remsima, Flixabi, etc.) are grouped following ATC-5 classification L04AB02. The new system would have a reference price group based on the broader ATC-4 Simon-Kucher & Partners Healthcare Insights | Recent Developments in Global Pricing & Market Access 8
classification L04AB, and include drugs for the same prescription by active substancee. Additionally, they indication, such as infliximab drugs (Remicade and argue that this change could lead to drug substitu- its biosimilars), etanercept drugs (Enbrel and its tions that may result in medication errors by patients biosimilars), adalimumab drugs (Humira and its bio- who are used to a certain presentation. similars), certolizumab drug (Cimzia) and golimumab • Pharmacies reject the clawback system as it disin- drug (Simponi). centivizes them from negotiating discounts and their 4. Lower price for generics and biosimilars vs. sustainability could be at riskf. originator: Generics and biosimilars’ prices would • Patients are afraid of experiencing safety and quality be fixed to a lower price vs. originator drug. Addition- issues when prescribed generics and biosimilarsg. ally, this price will be based on the originator’s real acquisition price (instead of list price). So far, this Action Plan only constitutes a list of ideas. Ap- proval and implementation details are still to be defined. Actions related to the prescription of generic and biosim- In the meantime, the Ministry of Health has welcomed ilar drugs: feedback from industry stakeholders. 5. Prescription by active substanceb: It will become mandatory for physicians to prescribe by active There are many uncertainties regarding the Action Plan, substance. due to Spanish political instability which makes it difficult to approve new measures, as well as pushback from the Actions related to dispensation of generic and biosimilar industry. Although it is uncertain whether or not the differ- drugs: ent measures of this Plan will ever come into existence, it 6. Pharmacy substitution: It will become mandatory is clear that the Spanish’ Ministry of Health continues to con- for pharmacists to dispense the less costly drug, sider potential solutions to mitigate expenditure and guaran- allowing automatic substitution of the originator tee the future sustainability of the Healthcare System. ▵ by generic/biosimilar if needed. Together with the a The price revision date will be set on the resolution of the drug inclu- prescription by active substance, this aims to foster sion in the National Healthcare System. competition among manufacturers and lower pricesc. b Except for unsubstitutable drugs: (i) biologics; (ii) drugs which active 7. Clawback system: Pharmacy discounts negotiated substance is considered of narrow therapeutic margin, if they do not have intravenous administration; (iii) drugs which active substance is between the pharmacy and the manufacturer will subject to special medical control or tracking; and (iv) respiratory sys- need to be refunded by the pharmacies to the Na- tem drugs administered via intravenous injection or infusion. tional Health System. c Originator drug manufacturers realize that their drugs are no longer profitable when generics or biosimilars enter the market, due to their The Plan has not been well received by the majority of price reduction. Thus, these manufacturers would be incentivized to pharmaceutical industry stakeholders, who criticize that focus on the launch new originator drugs that are profitable. they have not been involved in the development of these d Rodríguez, O. (2019). Farmaindustria pide incluir a los genéricos initiatives. Many have publicly opposed the plan: en el convenio que limita el gasto farmacéutico. Retrieved 25 No- vember 2019, from https://www.elespanol.com/economia/empre- • Pharmaceutical manufacturers contend that the sas/20191106/farmaindustria-incluir-genericos-convenio-limita-gas- Plan may damage drugs’ competitiveness without to-farmaceutico/442206708_0.html generating savings to the system, as originator drugs e Sobre el Plan de Fomento de Genéricos y Biosimilares (2019). Re- already have the same price as generics/biosimilars trieved 25 November 2019, from https://www.interempresas.net/Far- macia/Articulos/257456-Sobre-el-Plan-de-Fomento-de-Genericos-y-Bi- due to the fixed reference price system. The Plan osimilares.html; Rivera, M. (2019). Alegaciones al plan de biosimilares: could risk the continuity of innovative companies as diferenciación, prescriptor y farmacia. Retrieved 25 November 2019, their incentives would be temperedd. from https://www.redaccionmedica.com/secciones/sanidad-hoy/ alegaciones-al-plan-de-biosimilares-diferenciacion-prescriptor-y-farma- • Physicians ask for the NHS to respect their respon- cia-1212 sibilities and decisions as prescribers, and oppose Simon-Kucher & Partners Healthcare Insights | Recent Developments in Global Pricing & Market Access 9
f Arganda, C. (2019). El CGCOF rechaza el ‘claw back’ de Sanidad: However, yet another pathway does exist for some spe- “Cerrarían farmacias y aumentarían los desabastecimientos” Retrieved cific patients through the invalidity insurance (managed 25 November 2019, from https://www.diariofarma.com/2019/11/21/ el-cgcof-rechaza-el-claw-back-cerrarian-farmacias-y-aumentarian-los-de- by the BSV/OFASb), which must legally pay for any drugs sabastecimiento indicated for “congenital defects” for patients younger g Plan para el fomento de genéricos y biosimilares: “Aborda de forma than 20 years old, as defined by a list edited by the Fed- parcial la realidad y obvia la revisión del gasto en su conjunto” (2019). eral Council (highest executive authority). The criteria for Retrieved 25 November 2019, from https://elmedicointeractivo.com/ coverage are similar to the inclusion on the LS, even if primeras-reacciones-al-plan-de-genericos-y-biosimilares-aborda-de-for- ma-parcial-la-realidad-y-obvia-la-revision-del-gasto-en-su-conjunto/ less formalized and transparent. In some cases, this path- way has proven to be successful, such as for Spinraza in spinal muscular atrophy, but it is still not ideal. Indeed, Switzerland patients older than 20 years old at treatment onset or suf- fering from conditions that are not on the list of congenital Current status and future developments in defects cannot get any funding through this pathway. This innovative therapy funding in Switzerland has led to several cases that gained attention in the me- dia, such as a successful crowdfunding for Spinraza by a Innovative therapies with curative potential, such as cell 31-year-old patientc. or gene therapies, are being brought to thousands of pa- tients around the globe. These therapies usually target a This partial funding of innovative therapies is not an ideal limited patient group that are affected by rare diseases, situation, as it keeps manufacturers from giving patients and often require just one injection. However, they are access to the care they need. Several attempts have been associated with a high price tag that is a challenge for made to solve the issue, such as the decision of santé- healthcare systems (see table), who are often not ready suisse, an association of insurance companies, to fund or structured to support such costs. This is especially the Novartis’ Kymriah outside of any framework with a lump case in Switzerland, where healthcare costs are mostly sum of CHF 200,000d. There have also been some indi- covered by private insurances on a regional level. These vidual parliamentary interventions to increase/suppress insurances are subject to a national framework set by the 20-year-old limit (although all have been turned down the BAG/OFSPa, which publishes a limited list of drugs or withdrawn). However, these are all too limited to restore (List of Specialties – LS) that insurance companies have trust in the funding of these therapies, which is certainly the obligation to reimburse. LS is built on the principles not encouraging manufacturers to invest the costs related of cost-effectiveness, adequacy and efficacy. Given that to a Swissmedic approval (Swiss EMA/FDA equivalent). these limited criteria could make it hard for some of the in- Nevertheless, this situation may be resolved soon, as novative products to make the list, the Swiss government there are ongoing discussions in the Federal Commission has built some flexibility into the system, through the arti- for Healthcare Services and Principles to make a funda- cle 71b, c of the health insurance regulation. According to mental decision on how these therapies should be more this article, insurance companies must still cover the costs systematically funded. Conclusions are expected in the of a treatment that is not on the LS if two conditions are first semester of 2020. ▵ met: The treatment must bring an important therapeutic benefit to the patient, and there is not an alternative, effica- cious treatment included on the LS. Insurance companies have challenged this rule, which has led to an uncertain reimbursement situation. Simon-Kucher & Partners Healthcare Insights | Recent Developments in Global Pricing & Market Access 10
One time Congenital Product Indication Price therapy Target Patient Age defect Luxturna Retinal dystrophy €690,000 (Germany) Yes None, but the younger the better No Strimvelis ADA-SCID €594,000 (Italy) Yes 1-6 years old No (immunodeficiency) Kymriah Leukemia, lymphoma €320,000 (France) Yes
such as budget capping, price-volume agreements, ric or orphan indication). As part of the update, MHLW is risk-sharing, and outcomes-based agreements. considering granting premiums for indication expansions • Unusual and unique circumstances when a launch other than orphan or pediatric use. For example, MHLW is considered particularly challenging or commer- is looking to reward data demonstrated in the elderly pa- cially unviable (i.e., when there is clear differentiation tient group (especially >75 years). Additionally, the update in health gain between indications, significant loss may allow the summing up of price premiums, if a prod- in revenue without commercial flexibility, and the uct qualifies for more than one at the same time, which is impossibility of recovering from revenue loss in later currently not possible. All of these changes to the post- years). By not clearly defining those elements, the launch premium system would be new incentives, reward- discretionary terms on which NHSE decides on offer- ing additional research and development efforts. ing a CAA are retained. However, MHLW outlines other proposed changes that - Managed Access Agreements (MAAs): MAA should target new ways to realize cost savings. One example be considered if there is a plausible potential for a involves changing the rules for the Comparator pricing drug to satisfy the criteria for routine commission- method. Currently a new drug receives the same daily ing but clinical and financial uncertainty remain. A price as the pricing comparator (plus a potential price pre- time-limited data collection agreement is added to the mium). With the new pricing rule, a discount will be possi- PAS or CAA and treatment is offered at a cost-effec- ble for the new drug if it does not qualify for the so-called tive price for the duration of the MAA. “Price Maintenance Premium” (PMP), while the pricing - Budget impact test: Even if a medicine is cost-effec- comparator does qualify. The PMP protects products tive, costs greater than £20 million in any of the first from the regular NHI price cut and is granted to products three years of launch will result in NHSE engaging in meeting certain criteria (e.g. orphan drug indication or commercial negotiation to address affordability. qualifying for a price premium due to clinical usefulness). The pricing rule change would result in a lower launch Next steps price for products not meeting these criteria for innovation Overall, the draft framework emphasizes the increasing or clinical necessity. influence of NHSE and signals that complex commercial schemes will likely be more frequent going forward. The The discussed changes suggest that MHLW is willing to finalized framework is expected in early 2020 and feed- reward products that are innovative, while strictly restrict- back can be provided until January 10th, 2020. ▵ ing the budget for products that are not. This policy is a consequent step in responding to a healthcare budget Japan that is too limited to distribute without differentiation, and should continue for the foreseeable future. ▵ Potential rule changes in the 2020 NHI price revision The next regular NHI price revision is approaching in China April 2020, and the Japanese Ministry of Health, Labour 2019 NRDL price negotiations concluded and Welfare (MHLW) has recently published information with 70 drug inclusions about potential changes coming in 2020. The result of China’s 2019 national drug price negotia- One proposed change is an update to the so-called “post- tion was announced by the National Healthcare Security launch premium” system. This system allows manufactur- Administration (NHSA) on November 28, 2019. The 2019 ers to receive a price premium for an already-launched NRDL negotiation targeted single-source drugs which product when new data are made available (either by were launched in China before December 31, 2018. Out further demonstrating the clinical usefulness for the ex- of 119 drugs negotiated, 70 were successfully added to isting indication or supporting an expansion to a pediat- the National Reimbursement Drug List (NRDL), including 52 medicines from MNCs and 18 Chinese medicines. Simon-Kucher & Partners Healthcare Insights | Recent Developments in Global Pricing & Market Access 12
Additionally, out of 31 drugs which were added to the NRDL in 2017, 27 re-negotiated successfully, including Brazil 22 medicines from MNCs. The outcomes of the 2019 Outcomes-based agreements NRDL negotiation will become effective on January 1, 2020, and be valid for two years until December 31, 2021. The newly-elected government in Brazil is expected to bring changes to the health care system landscape, with The average price cut was 61% for the 70 products which a higher focus on more affordable and fair public reim- were negotiated for the first time, whereas it was on av- bursement. Denizar Vianna, the appointed head of SC- erage 26% for the 27 products re-negotiated. For some TIE (Science, Technology and Strategic Input Secretariat), therapy areas the price cut was particularly high: the av- is expected to lead these changes. He has made public erage price cut of HCV drugs was more than 85%; prices statements regarding his focus on defining public priori- of oncology and diabetes drugs were cut by approximate- ties, budget constraints, considerations of unmet needs ly 65% on average. For the first time manufacturers can and the future technologies landscape, and is also a choose not to disclose the negotiated prices publicly. Out strong advocate for the implementation of risk sharing of 74 medicines from MNCs added to the NRDL, post agreements (RSA) in Brazil. The first RSA pilot was closed NRDL prices of 46 drugs are confidential. in June 2019 for Spinraza in Spinal muscular atrophy (SMA) types II and III. The 2019 NRDL negotiation prioritized therapeutic areas including oncology, rare diseases, chronic diseases and SMA is a rare genetically-inherited neuromuscular dis- pediatrics as well as essential drugs. As a result, all 5 na- ease that causes progressive muscle weakness and loss tional essential drugs were included in the NRDL. Look- of movement, and is the most common genetic cause of ing at the split by therapeutic areas, 22 oncology drugs, 7 death in infants. There are 4 types of SMA, and type I is rare disease drugs, 14 chronic disease drugs (including the most severe and common. Type I patients never de- diabetes mellitus, hepatitis B, rheumatoid arthritis, etc.), velop the ability to sit unsupported, and typically do not and 4 pediatric drugs successfully negotiated. From 5 survive after the first 2 years if no intervention is provid- PD-(L)1s launched in China, only one local novel PD-1 in- ed. Spinraza is the first treatment approved beyond sup- hibitor was included in the NRDL. With the inclusion of portive care, and got a fast-track approval 3 months after 7 orphan drugs, the NRDL increased coverage of rare submission by ANVISA (the Brazilian Health Regulatory diseases such as pulmonary arterial hypertension (PAH), Agency). Access was granted in November 2017. Niemann-Pick disease type C (NPC), and multiple sclero- sis (MS). The first submission for public funding happened in Janu- ary 2018 for SMA type I, however CONITEC (the Brazilian According to the NHSA, a dynamic adjustment mech- HTA agency) gave a negative preliminary recommenda- anism for NRDL will be put into place in the future that tion due to fragile clinical evidence, lack of demonstrated allows review and inclusion on a yearly basis. Once it clinical improvement, inconsistent cost-effectiveness rela- becomes effective, drugs that failed to be added to the tion, and evidence that it could compromise the financial NRDL this year may have the chance to be included in the sustainability of SUS (The Unified Health System) finan- NRDL the following year. ▵ cial sustainability. In January 2019, Biogen made a new submission proposing a 62% discount vs. list price and achieved a positive funding recommendation 3 months later for SMA type I. The fast assessment by CONITEC was a result of the high awareness and perceived unmet needs for SMA. The public consultation for the first sub- mission achieved a record of 37K contributions, followed by 42K contributions for the second public consultation, which received 95% in favor of incorporation. Simon-Kucher & Partners Healthcare Insights | Recent Developments in Global Pricing & Market Access 13
For SMA types II and III, due to uncertainties on efficacy and budget impact, the MoH decided to implement the first RSA pilot in the public setting, which is the biggest innovation in the public sector since the early days of tech-transfer. For Denizar, it is important that each contract is tailored case-by-case and with transparency. He also gave public statements about being open to discussing ideas and building future RSA models. The RSA reached with Biogen consists of a patient cap based on epidemi- ology, a negotiated price discount, and payment based on performance, which will be monitored by the MoH through Albert Einstein Hospital. The data will be used by CONITEC for a new assessment in three years. Since the beginning of November, patients with SMA types II and III have been able to request access to Spinraza and be directed to a reference center by the MoH. Although there are still several challenges for rolling out outcomes-based contracts, including infrastructure avail- ability for results monitoring, patient database develop- ment, and legal constraints (e.g., the MoH cannot receive paybacks in the case of treatment underperformance), this is a new access opportunity in Brazil that is especially relevant for orphan drugs. Offering the MoH support for developing the required capabilities and having high pub- lic awareness, perception of unmet needs, and indication severity can improve chances of success. Denizar high- lights the importance of the MoH and industry engaging in discussions to improve access that guarantees the sus- tainability of the public system. ▵ Simon-Kucher & Partners Healthcare Insights | Recent Developments in Global Pricing & Market Access 14
Comprehensive Commercial Alignment: The Key to Brand Forecast Accuracy By Nick Keppeler, Tyler Perez, and Jeremy Winkler Actual sales miss the revenue forecast by an average of 50 percent – an alarming number. What can pharmaceutical companies do to achieve their desired commercial performance and improve forecast accuracy? Colourbox/- Simon-Kucher & Partners Healthcare Insights | Features 15
The success of mid- to long-term planning in pharma re- Poor outcomes are due to a lack of alignment between lies heavily on the commercial alignment and accurate patients, payers, prescribers, and the brand, causing forecasting of future revenue from new product launches. forecasts to be unrealistic and critical brands falling short However, this continues to be a difficult exercise to pre- in terms of value and sales potential. While we don’t be- dict. From 2015 to 2018, 65% of new products across the lieve that major pharmaceutical companies neglect any pharmaceutical industry failed to achieve their forecasted of these four key stakeholders in isolation, poor planning revenues, with 14 of 23 new oncology products failing across activities for these customers can significantly de- to reach their forecasted revenue by an average of 50% rail a new product launch (and by extension its forecast). (Figure 1).a There continues to be debate around what For example, a brand team might capture prescriber per- is considered to be an acceptable variation in actual vs. ception and preference share for a new brand without forecasted peak sales two-years prior to launch. The gen- accurately capturing how payer access and authoriza- eral consensus from industry experts considers a 6-15% tion requirements will impact provider decisions. There- variation in forecast vs. actual peak sales to be accept- fore, planning across these diverse commercial activities able, however market share assessments from primary re- needs to be carefully carried out and accounted for to search more often than not overstate the real world share improve commercial performance and forecast accuracy. that is actually captured.b To successfully achieve desired commercial performance, companies must go beyond One way that Simon-Kucher focuses on getting commer- just capturing health care provider preference share es- cial alignment correct is by analyzing an event that we timates by taking a multi-faceted approach to develop refer to as the “Prescribing Epicenter”. The “Prescribing alignment across several real world factors. Epicenter” captures four key drivers or cornerstones of Oncology products launched 2015-2018 Underperformance >15% Launch Year: 2015 2017 2018 1.2 Forecast 38% 1 Actual 97% 92% Total lost 0.8 potential of In Billion USD launches: 0.6 $3.0 billion 64% 21% 0.4 26% 62% 72% 52% 0.2 45% 34% 39% 25% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Figure 1: Forecasted revenue vs. Product actual sales (2015-2018 U.S. billions of dollars) a Figure based on data taken from Globaldata.com b Simon-Kucher & Partners Chicago Forum Survey 2019 Simon-Kucher & Partners Healthcare Insights | Features 16
brand strategy that serve as the pivotal juncture where pa- tients can be helped by a new brand (Figure 2). These four “From 2015 to 2018, 65% drivers include: 1) brand differentiation and the customer journey, 2) dynamic patient events that create opportuni- of new products across the ties to start or change therapy, 3) physicians’ willingness to prescribe based on brand interest and experience, pharmaceutical industry and lastly 4) available access through payer and orga- nized customer engagement. Balancing these elements failed to achieve their requires a complete assessment of the levers across all forecasted revenues, with relevant stakeholders and segments. By comprehensive commercial alignment and optimization across each of 14 of 23 new oncology the four drivers of the Prescribing Epicenter, companies can maximize the potential value for a new brand while products failing to reach ensuring commercial performance matches forecasts. their forecasted revenue by an average of 50%.” Simon-Kucher’s Drivers of Prescribing Epicenter Performance (select elements) • Dynamic opportunities to • Create calls to action start/change therapy • Differentiate from alternatives • Engage customers to identify ion & act in these situations • Support customers through tiat Pa tie en n initiation & use journey er • Align product strengths to tE iff these events dD ve nt Bran Prescribing Epicenter er Ava • Right level of payer, hospital, rib • Reach through preferred ila sc system engagement bl re e channel(s) at right time P Ac ing ces Will • Allows use in a target patient s • Build interest & belief in brand event • Establish confidence & • Perform relative to alternative experience options Figure 2: Drivers of Prescribing Epicenter Performance The Prescribing Epicenter for each product is unique and may require different activities to ensure balance is achieved across the four cornerstones. Each cornerstone requires different key considerations to help determine which activities are needed to ensure a comprehensive commercial alignment. The first Prescribing Epicenter cornerstone is the brand differentiation of a new product. A product’s brand must articulate the differentiating fac- tors between alternatives, highlight key value messages Simon-Kucher & Partners Healthcare Insights | Features 17
and engage stakeholders at the right time to achieve suc- the population. This might create a scenario where mes- cess. Patients and prescribers might display an interest in saging on the importance of accurate diagnosis and early a product, but if the brand is not agreeable with payers, treatment to help bring the disease under control should then restricted access can limit commercial performance be prioritized for physicians in City B. Shifting focus at launch. across different commercial activities to account for these differences across geographies can make the difference The cornerstone around dynamic patient events is the between achieving high levels of prescribing from both next key driver that can easily fall out of alignment within providers versus only achieving high levels of prescribing the prescribing epicenter. Events such as the diagnosis of from one. The winning result is prescriber strategies and a new disease or when a prior therapy has been identified education that reinforce the brand in the context of that as not meeting the patient’s needs are the natural start, prescriber’s local Prescribing Epicenter. stop, or inflection points in the patient journey. When a relevant event occurs, it is critical that the product is both The last cornerstone is focused on available access for a clinically appropriate and available to the customer. For new product. While this is an area that all pharma com- example, if the brand is not top of mind for physicians panies prioritize, payer activities need to be carried out at the time of an event, readily accessible from payers mutually in conjunction with the other three cornerstones. or amenable to patient needs, this could derail product Often times there is misalignment within the manufactur- adoption. To deal with these challenges it is important to ers’ teams at this step – for example when a brand team assess how elements such as digital engagement, direct positions the product as a first line option while the vast to consumer marketing or patient support programs can majority of payers expect to have access requirements of help overcome these gaps. In order for adoption to fit into two or more competitor therapies. Companies should be the natural progression of care, products must be mar- cognizant that gaining access alone will not guarantee keted effectively across patient segments so that they are the best commercial performance of a new product. If the in the decision set at the right time of the patient journey. product gains access but doesn’t account for the other three cornerstones, patients and prescribers could fail to Next, when considering the “willing prescriber” corner- see the need for the new product even if payers do. stone, it is helpful to think both of the prescriber as an individual but also the environment in which they oper- Creating harmony across all four cornerstones of the Pre- ate. For example, most commercial organizations track scribing Epicenter allows for a new brand to be launched the communication preferences of their physician tar- at its maximum potential. Identifying short-comings ahead gets. However, what is less common is looking at how of time helps commercial activities and forecasts to be the environment in which they operate affects the way the adapted for potential suboptimal factors and reasonably physician is engaged with the manufacturer. Take as an account for future commercial performance. These exer- example two specialists who both prefer digital communi- cises require investment across multiple groups within a cations, but one practices in City A and the other in City B. given company to prevent future miscalculations that can Now, consider that City A has access challenges for your damage the commercial performance of a new product. product and only 20% of lives have unrestricted access to your product. In this geography, it would be more impact- ful to prioritize communications related to the strength of access support programs and approaches to help pa- tients initiate treatment onto a product quickly while they are working through the authorization process. For the al- ternative physician in City B (assuming very good access) those same messages may be of lower priority. What might be unique about City B is the low level of patient events in the area relative to the size and demographics of Simon-Kucher & Partners Healthcare Insights | Features 18
Case 1: What do you mean I won’t hit my forecast? Missing the mark It is well understood that physician-stated preference example, four key market-based adjustments were used share from market research needs to be adjusted to to help achieve a more accurate real world share expecta- create more realistic expectations for real world market tion including: (1) Payer access, (2) sales force reach, (3) share. While there are a variety of approaches to do this, physician uptake and (4) awareness and impact of com- there are still a number of manufacturers who only con- petition. These factors were then applied for one brand duct physician research and then apply an off-the-shelf across four possible patient events. The key findings were haircut of 50% to their preference shares to help adjust that the “haircut” factor a) ranged from 50-75% and b) forecast estimates. This approach is a common mistake varied across patient events for the same product. By an and can be a big contributor to why so many forecasts order of magnitude, applying a typical 50% adjustment significantly miss the mark. Simon-Kucher applies a differ- factor rather than Simon-Kucher’s comprehensive com- ent approach – by developing custom estimates of actual mercial alignment approach would have led to an over- market factors across the Prescribing Epicenter for each estimate of >$1 billion per year in peak revenue forecast. brand and competitive situation. In the following blinded Peak preference shares by patient event pre- vs. post-market factors Impact of market factors 40% 1 “Naïve” patients 25% 10% 44% Switching to or adding 2 Class A product 34% 15% 39% Changing within 3 Class A products 49% 19% 6% Switching within 4 Class B products 33% 2% Pre-market factors % of patients in each event Post-market factors Figure 3: Percent peak preference share by pre- / post-market factors Simon-Kucher & Partners Healthcare Insights | Features 19
Case 2: Predicting regional pockets of whole. Second, it helps advance from strategic planning opportunity to comprehensive commercial alignment readiness, in order to make a launch as successful as possible. This As a brand gets closer to launch, forecasting and stra- approach serves as a quantitative bridge to launch readi- tegic planning needs to be taken a step further to look ness and critical success factor planning. at how the business will perform in a local sales region. Simon-Kucher uses a quantitative regional assessment In the graphic below, this detail illustrates tremendous known as the Top Line Power Commercial Engine to variation across the USA in terms of launch environment elucidate the effects of comprehensive commercial align- including: a) drivers of competitors’ commercial perfor- ment on prescribing. In this example, advanced analytics mance, b) areas of opportunity with low treatment rates (Tableau for data management and visualization, Python today, c) geographies where the competitor seems to for prediction models) is used to assess competitor per- focus less on its sales and marketing efforts and d) rel- formance in the market environment to draw competitive evant actions around payer strategy, physician targeting insights for the product of interest. Data from US census and disease awareness. For example, one takeaway was data, CDC prevalence, MMIT formulary status, # of spe- that competitors were facing access hurdles in Alabama cialists & TRx data (IMS), CMS open payment data and – most likely caused by access of the product at Prime Google was used to evaluate the variation in prescribing / BCBS Alabama. We estimated that 40% of the com- as it relates to factors such as sales / marketing spend to petitor volume was untapped due to this access position prescriber, % of covered lives facing no step edits, num- (Figure 4). Another key insight from this type of analyt- ber of specialists in an area, and Google searches for ical approach debunks the use of traditional physician the competitor product. Given the power behind this ap- targeting based on prescriber deciles to identify markets. proach, there is the flexibility to use a range of data inputs The result could be rather than targeting competitor en- including a client’s sales force effectiveness data, target trenched areas that will put the manufacturer head to call lists, and advertising spend to name a few. head with its competitor, focus on opportunities in low dis- ease treatment areas or low marketing spend areas with This Top Line Power Commercial Engine approach high untapped potential. New tools are making it easier serves two important functions. First, it helps better refine to evaluate this type of added complexity and return more forecasts closer to launch as sales estimates are rolled up targeted and actionable opportunities for manufacturers. from a detailed geographic territory view to an aggregate Categorization of launch environments based on Competitor Y performance vs. expectations 800-lb gorilla areas 60 ZIP3s; 49% of TRx High use vs. expected cases Average areas 247 ZIP3s; 35% of Competitor Y TRx Use in line with expectations Under marketed areas 93 ZIP3s with low marketing / sales focus 17% of cases vs. 9% TRx Payer limited areas 58 ZIP3s with access policies that affect TRx potential 11% of cases vs. 6% TRx Low penetration areas 98 ZIP3s with minimal Competitor Y use This type of visualization 15% of cases vs. 2% TRx illustrate key prescribing drivers (access vs. other factors) Figure 4: Categorization of launch Geography excluded environments based on competitor Y performance vs. expectations Simon-Kucher & Partners Healthcare Insights | Features 20
Future challenges and opportunities Redefining a multifaceted approach for strategic initia- tives and tactics is vital for successful commercial perfor- mance as well as creating a path forward. With a huge percentage of new products failing to reach their fore- casted numbers, expanding the considerations in com- mercial activities for a product launch can improve accu- racy and help to identify blind spots in launch readiness planning. Strategies around the four cornerstones of the Prescribing Epicenter all contribute to the potential suc- cess of a launch and accuracy of forecasting commercial performance. Systematically evaluating the Prescribing Epicenter for a product helps to identify short-comings of a product’s go-to-market strategy and improve the ability “By comprehensive to more accurately forecast and prepare mid- to long-term planning. We strongly believe that comprehensive com- commercial alignment mercial alignment is a critical factor to both significantly and optimization across improving forecasting accuracy and creating a solid foun- dation for long-term brand performance. each of the four drivers of the Prescribing Epicenter, companies can maximize the potential value for a new brand while ensuring commercial performance matches forecasts.” For correspondence related to this article, please contact Nick Keppeler at nicholas.keppeler@simon-kucher.com Simon-Kucher & Partners Healthcare Insights | Features 21
ATU in France: the case for early consideration in local and European P&MA strategy By Diane Cosset, Clementine Legros, Jonathan Haugen, Lilia Meddeb Examining the recent changes in France’s early access program and its implications for manufacturers’ European P&MA strategy. Colourbox/- Colourbox/- Simon-Kucher & Partners Healthcare Insights | Features 22
Time to access in France, with an average duration of 209 What is the ATU program? daysa after marketing authorization in 2018, continues to exceed the European directive of 180 days. However, the ATU status is granted by the French National Agency for ATU (Temporary Use Authorization) early access program Medicines and HealthaProducts Safety (ANSM) to pro- enables reimbursed access to drugs prior to marketing mote fast access to innovation, before marketing autho- authorization. Since its implementation in 1994, the ATU rization and conventional pricing and market access pro- program has garnered symbolic importance, and today cess completion. In order for a drug to be granted ATU serves as an emblem of France’s pioneering position in status, three key criteria must be met: this field. Although this program represents an oppor- 1. The drug must be intended for a serious or rare tunity for patients and pharmaceutical companies alike, indication manufacturers must carefully consider the impact on their 2. There must be no other appropriate therapies future negotiated prices in France and in other European available for this indication in France countries when setting prices for ATU drugs. This is even 3. The drug must have presumed efficacy and safety truer considering this program has been on French health in light of the available scientific data, and the treat- authorities’ radar for the past few years and has been sub- ment cannot be delayed for patients ject to increasingly strict pricing rules, in particular with the recent repeal of the free pricing policy for nominative ATU. Within this program, two types of ATU can be granted. A nominative ATU (nATU) is for one specific identified patient at the request of his or her physician. A cohort ATU (cATU) is designated for a group of patients at the Figure 1: Comprehensive overview of cohort ATUs granted in 2018 per therapeutic area request of the drug manufacturer (with requirements and eligibility criteria differing slightly between the two). ALL: acute lymphoblastic leukemia; AML: acute myeloid leukemia; aPTT: acquired thrombotic thrombocytopenic purpura; nmCRPC: Non-metastatic castration resistant prostate cancer: DLBCL: Diffuse ATUs allow early access for thousands of patients each Large B cell Lymphoma; NSCLC: non-small cell lung cancer; PMBCL: Primary mediastinal B-cell lymphoma; VWD: von Willebrand disease year; roughly 22,000 patients benefited from the ATU pro- gram in 2018 alone includ- Oncology (7 cATU) ing over 230 different drugs • Erleada (apalutamide) – nmCRPC • Alunbrig (brigatinib) – ALK+ NSCLC (nATUs: 217 drugs and • Imfinzi (durvalumab) – 2L NSCLC 15,987 patients; cATUs: 20 • Kymriah (tisagenlecleucel ) – 3L+ R/R DLBCL / ALL • Lorviqua (lorlatinib) – 3L ALK+ NSCLC drugs and 5,642 patients)b • Vyxeos (daunorubicine, cytarabine) – 1L AML Oncology • Yescarta (axicabtagene ciloleucel) which underscores just how 3L+ R/R DLBCL and PMBCL Hematology extensive the program is. Hematology (5 cATU) • Atgam (Lymphocyte immune globulin 26% bone marrow suppression • Cablivi (caplacizumab) – aPTT The ATU program was initial- • Hemlibra (emicizumab) – hemophilia A ly designed to guarantee ear- • Poteligeo (mogamulizumab) – mycosis fungoides 37% • Vonvendi (vonicog alfa ) – VWD ly access mainly to new HIV 11% Rare disease, genetic, congenita Rare disease, genetic, congenital (2 cATU) therapies, but now mostly • Crysvita (burosumab) –hypophosphatemic rickets • Ursofalk (ursodeoxycholic acid) – cystic fibrosis covers oncology and hema- 11% Neurology (2 cATU) tology products as well (see 5% Neurology 5% 5% • Onpattro (patisiran) – polyneuropathy Figure 1). • Tegsedi (inotersen) – polyneuropathy Ophtalmology Ophtalmology (1 cATU) Endocrinology • Luxturna (voretigene neparvovec) Cardiology Leber's congenital amaurosis Cardiology (1 cATU) • Takhzyro (lanadelumab) –hereditary angioedema Endocrinology (1 cATU) • Metreleptin (metreleptin) –lipodystrophy a 2018 CEPS report b 2018 ANSM annual report Simon-Kucher & Partners Healthcare Insights | Features 23
ATU status to post-ATU status: For some ATU drugs, such as Yescarta, the P&R process what are the implications? can be rather quick, and may be completed within a year of their MA. However, the average post-ATU status duration Once a product has its marketing authorization (MA), it is approximately 630 daysc (see Figure 2) , which is signifi- loses its ATU status. The manufacturer must then submit cantly longer than the average time of 209 daysd between a request for reimbursement for the licensed indication marketing authorization and P&R completion in 2018, de- within one month in order to benefit from post-ATU sta- spite the priority review given to these drugs by the TC. tus, which enables funding during the P&R process and ensures continuous access for patients. By their very nature, ATU drugs address diseases with high unmet need for which there may not be any alterna- During the post-ATU phase, the product goes through tive treatment available, implying a lack of price bench- Transparency Committee (TC) assessment and then marks and comparators which often results in challeng- through pricing negotiations based on the SMR and ing and lengthy price negotiations with the Economic ASMR ratings granted by the TC. The ATU phase may Committee for Health Products (CEPS). Therefore, ben- support favorable reimbursement by providing real-world efiting from the ATU/post-ATU status is a key advantage evidence (though this is not often taken into account in for manufacturers, as it prevents major delays in products’ the TC’s evaluation due to insufficient data quality), and commercialization and therefore loss of revenue. It also also by generating experience and familiarity within the contributes to explaining why the post-ATU phase is lon- clinical and patient community. ger than average. The fact that patients already have early treatment access implies limited pressure for health author- The length of the post-ATU phase heavily depends on ities to complete the P&R process quickly and may be an- the context of broader P&R negotiations (price level re- other explanation for the longer P&R process of ATU drugs. quested by the manufacturer, existence of price bench marks, etc.). Figure 2: Time between MA and price publication (i.e., post-ATU VYXEOS 240 status) – in days YESCARTA 330 MEKTOVI 330 Comprehensive list of drugs with a HEMLIBRA 330 post-ATU status start after 2014 and Average BRAFTOVI 330 time end before November 2019 since M MEPSEVII 390 A is 630 da OCREVUS 420 ys TREMFYA 450 MYLOTARG 450 TECENTRIQ 510 DUPIXENT 540 ZEJULA 540 BAVENCIO 540 LUTATHERA 690 SPINRAZA 690 NALSCUE 720 DARZALEX 1110 WAKIX 1140 TAGRISSO 1260 c Average time between market- ZYDELIG 1710 ing authorization and post-ATU expiration date of all ATU drugs with From MA to start of post ATU Length of post-ATU a post-ATU effective date between 2014 and November 2019 d 2018 CEPS report Simon-Kucher & Partners Healthcare Insights | Features 24
You can also read