5 ways pharma is deriving big value from data
Big data, naturally, is an important element of the pharmaceutical industry as all parties are looking to analytics in different forms to bring down costs and be more effective, a new study says.
A new study by PwC,"21st Century Pharmaceutical Collaboration: The Value Convergence," says data analytics is a catalyst as the divisions between biopharmaceutical R&D, FDA approval and commercialization are blurring as different stakeholders are collaborating to use data to understand market forces.
Pharmaceutical will need to be more active in working with different groups to ensure access to data, the report said.
"Biopharmaceutical companies cannot afford to sit on the sidelines as patients and health plans negotiate access to their products," the study said. "Putting drug costs into context requires access to patient data, and evidence connecting drug intervention with patient health outcomes. Collaboration is the key to demonstrating value and ultimately boosting revenues in a system that rewards outcomes and quality over volume."
The PwC study included dozens of interviews with insurer groups, health systems, new entrants, patient advocacy organizations and biopharmaceutical executives, and shows how collaboration and a reliance on data is changing the landscape for the pharmaceutical market.
Key findings included:
1. Providers: “Pushed by new payment incentives, are collaborating with the drug industry to measure the effectiveness of therapies on the patients they treat,” PwC noted.
2. Prescribing: Specific to prescribing practices, health entities are increasingly reflecting sophisticated cost vs. benefit analyses.
3. Biosensors: New digital tools are coming to market and helping biopharmaceutical companies glean practicable information about patients, their lives, and how they respond to drug interventions.
4. Patient advocacy organizations: Groups are establishing disease-specific registries for a range of purposes, most notably research, and working with pharmaceutical organizations on clinical trials, from design to protocols.
5. Proposed legislation: The 21st Century Cures Act, which the U.S. House of Representatives passed on Friday, would enable drug makers to promote cost effectiveness as a product attribute.
The report concluded that new technology is accelerating the pace of innovation in biopharmaceuticals by democratizing access to data and helping consumers manage their health.
"Collaboration," the report said, "is critical to accessing and analyzing the data needed for an increasingly personalized product offering and the price tag such a product commands."