Benchmarking the Pharma Industry s HEOR Functions

Transcription

1 EW PR EV I Benchmarking the Pharma Industry s HEOR Functions Info@ISRreports.com 2013 Industry Standard Research

2 Report Overview This report provides pharmaceutical and biotech organizations an opportunity to benchmark their own Health Economics and Outcomes Research (HEOR) approaches against that of Top 50 Pharma companies. ISR details best practices, common approaches, as well as explains alternative styles so companies can use these assessments as a yard stick against which to measure, modify, and improve their own HEOR structures. Major Sections: 1. Understanding the HEOR Function HEOR Employees HEOR Work 2. HEOR Department Benchmarking Division of Work Department Structure Organizational Alignment Outsourcing Product Budgets Q4, 2013 Publication Date 17 Senior employees from top 50 Pharma 55 Pages Methodologies: ISR interviewed 17 senior employees with decision-making responsibilities in HEOR departments among the top 50 largest pharmaceutical companies. Pharma company rankings were determined by the 2013 Pharm Exec Top 50 pharmaceutical companies based on 2012 Rx Sales. Global HEOR headquarters respondents: 13 Regional headquarters or country affiliate respondents: 4 The titles below are held by our interviewees: Vice President, Global HEOR Director, Global HEOR (4) Director, Global Health Outcomes Director, Global Health Economics and Market Access Director, HEOR (4) Group Director, Global HEOR Associate Director, HEOR (2) Deputy Director, Global HEOR Director, Public Policy and HEOR Group Manager, Health Economics Learn how you can use this report Preview of: Benchmarking the Pharma Industry s HEOR Functions 2

3 What you will learn in this report: HEOR department operations and structuring, including: HQ and regional structuring models Headcount Organizational alignment with Medical Affairs, R&D, and Market Access Division of work Headquarters in-country affiliates Centers of Excellence Involvement in pricing and reimbursement Outsourcing and vendor selection Annual product budgets Challenges Future Predictions Best Practices Recommendations Qualities of successful HEOR employees, as well as professional development and group structuring strategies to improve HEOR functional effectiveness Ways to optimize HEOR work during clinical development delays by identifying barriers and understanding ideal timing of HEOR project kickoff, design, and execution How you can use this report: Learn from on-the-ground professionals to develop successful and timely HEOR programs that seamlessly integrate with Research & Development to establish a persuasive product narrative Benchmark the structuring of HEOR resources against Top 50 Pharma to optimize group effectiveness and improve resource development Identify best practices, recommendations, and challenges for all aspects of HEOR as described by 1 Vice President, 15 Directors, and 1 Group Manager within Top 50 Pharma Up next: Full table of contents and sample pages Preview of: Benchmarking the Pharma Industry s HEOR Functions 3

4 Table of Contents Copyright and Usage Guidelines Methodology Interviewee Company Size Interviewee Titles Interviewee Responsibilities Potential Best Practices Introduction Understanding the HEOR Function Infographic HEOR Employees Educational Background Employee Qualities HEOR Work HEOR Goals Clinical Trial Involvement Actual Desired HEOR Involvement Timeline Barriers to Earlier Involvement HEOR Department Benchmarking Infographic Division of Work Headquarters Affiliates In-Country Affiliates Work within Headquarters Therapeutic Area / Product Alignment Centers of Excellence Products in Development Commercialized Products Workload Equalizing Pricing and Reimbursement Pricing and Reimbursement Responsibilities Spectrum Desire for Clarity Department Structure Common HEOR Headquarters Structure Alternative HEOR Headquarters Structure Regional Structures Headcount Number of Worldwide HEOR Employees Organizational Alignment Medical Affairs Research & Development Market Access Comparison of HEOR Locations Outsourcing Is Department Size a Factor? Proportion of HEOR Work Outsourced by Company Size Why Outsource? Lack of Capacity or Technical Expertise Data Needs Credibility Strategic Focus Vendor Selection Vendor Selection Process Vendor Attributes Work-Related Attributes Customer Experience Attributes Product Budgets Product Coverage Funding Source Product-Level HEOR Spend Low-End Annual HEOR Spend Per Product High-End Annual HEOR Spend Per Product Challenges Stringent Payers Skepticism of HEOR Work Objectivity Communication Workload Future Predictions Summary: Potential Best Practices Recommendations About Industry Standard Research Preview of: Benchmarking the Pharma Industry s HEOR Functions 4

5 Sample Page: Report Introduction Introduction act with confidence Introduction One way to think about the Russian clinical trial and pharmaceutical environment is to Reimbursement think of the country is becoming as a publically more traded difficult pharmaceutical to obtain and company. favorable If you were leafing reimbursement through a prospectus is more difficult or an investor still. As presentation, the pharmaceutical you would industry find a company to the with changing strong macro reimbursement fundamentals, environment, historic growth, Health inconsistent Economics performance, and adapts and Outcomes some regulatory Research uncertainty. (HEOR) continues In short, Russia to grow has many in prominence of the same within characteristics pharma as a mid-stage and is becoming pharmaceutical an increasingly company. important And, if you piece take a portfolio of the puzzle theory in approach to investing, you would likely want to invest some portion of your assets terms of successfully commercializing products. in Russia. Why? Pharma can no longer simply demonstrate to payers that a product works and Macroeconomics: is safe and expect Russia reimbursement is the world s 10 to th be largest easily economy checked off the to-do list. Pharma International needs recognition: to sell the story Joined of the a strong World Trade value Organization proposition (WTO) for its in products 2012 and HEOR is the way to do it. Positive balance sheet: Russia has ~$240B trade surplus from fossil fuel reserves As HEOR is still evolving, ISR wanted to gather a better understanding of Focus: Putin announced $3.9B plan aimed at having 90% of medicines to be HEOR locally as produced a function: by 2020 what types of work HEOR departments do, how HEOR departments are structured, and how they fit within the larger organization. While Reimbursement we ve found structure: that there Medicines are some Insurance sub-topics System in (Aug HEOR 2012) in which is to be Top in 50 place by 2020 that will include a tiered rate of reimbursement, depending on pharma companies subscribe to similar schools of thought, there are also the nature of the illness, and improve access to medications many areas in which large pharma approaches HEOR-related decisions quite differently. Growth: Russian pharmaceutical market has been growing 17% annually since 2005 ISR presents with this report an opportunity for pharma companies to benchmark Untapped potential: their HEOR Many approach patients against are treatment that of naïve, Top offering 50 pharma opportunities companies. ISR for will clinical detail trial what patient we ve recruitment found to be common approaches as well as explain Uncertainty: differing Regulatory styles so environment companies and can customs use these practices assessments are unstable as a and yard stick unpredictable against which to measure their own HEOR structure. Difficult: In 2012 the World Bank ranked Russia 122 nd on their list of economies by ease of doing business, 21 spots below China Skills: Finding highly qualified healthcare professionals can be difficult Protection: IP protection is concerning Preview of: Benchmarking the Pharma Industry s HEOR Functions 5

6 Sample Page Understanding the HEOR Function act with confidence Employee Qualities Qualities of Successful HEOR Employees Technical expertise Strong communication skills Strong business sense or skillset Ability to strategize and see the big picture Understanding of marketing Understanding of the product and therapy area Qualities of successful HEOR employees were also discussed. HEOR employees are expected to have strong communication skills as they interface with many groups within the organization as well as with outside vendors. Business skills and the ability to see the big picture are also noted as critical factors in effective HEOR work. It s hard to take someone right out of school and put them in an outcomes research job. They really need to have a business sense. There are people that are extremely technically proficient but don t necessarily have the business skills to provide the strategic insight which is equally if not more important than the technical expertise. It s really understanding the strategic piece of it that is more of a challenge. That s where business and experience lend themselves (Top 10 Pharma). Marketing experience is also noted as key. Being able to understand the product lifecycle helps employees decide what type of evidence is needed and then helps to disseminate that information effectively within the marketplace. It s about how you take the modeling from theory to practice. A lot of modeling is theoretical but you need someone to be able to deliver the model in front of the customer in a more practical sense (Top 25 Pharma). Employees are also expected to know a good deal about the actual product and/or indication on which they are working. You really need to learn the indication and its idiosyncrasies. One respondent mentioned that she expects to see HEOR employees being moved around the organization to achieve more crossfunctional experience and learn more about the products. It s about how you take the modeling from theory to practice. A lot of modeling is theoretical but you need someone to be able to deliver the model in front of the customer in a more practical sense. (TOP 25 PHaRMa) A handful of respondents mention that competition for quality HEOR employees is very high and the pool of talented employees is rather shallow. There is a lot of job switching within the field and salaries and titles continue to rise for HEOR employees. One respondent receives at least two phone calls or s per week from recruiters for HEOR positions at competing companies. Pharmaceutical organizations are reportedly always on the lookout for well-qualified, experienced employees Preview of: Benchmarking the Pharma Industry s HEOR Functions 6

7 Sample Page HEOR Department Benchmarking act with confidence Alternative HEOR Headquarters Structure Though the previous illustration depicts the most common structure reported to ISR, a handful of respondents portray variations of the below structure as an alternative. In this example, there are different HEOR employees responsible for the HEOR work for a product in development than those who are responsible for work while the product is in the market. The timing of the hand-off of the product can range from as early as the Proof of Concept (around Phase II) until as late as the product already having achieved reimbursement. Vice President, HEOR New Products Lead Therapeutic area Lead Therapeutic area Lead Directors / associate Directors / Managers Directors / associate Directors / Managers Directors / associate Directors / Managers Products in Development Commercialized Products within Therapeutic area Commercialized Products within Therapeutic area Industry Standard Research Regional Structures In companies with regional HEOR headquarters or offices, there are several ways the regional offices can be structured. Regions frequently mirror the HEOR headquarters structure mapped above with fewer people in each of the mid-level roles. Regional offices may also not have a strictly defined structure as HEOR employees in smaller offices may be grouped with market access or pricing and reimbursement, particularly in Europe Preview of: Benchmarking the Pharma Industry s HEOR Functions 7

8 Sample Page HEOR Department Benchmarking act with confidence Why Outsource? Data Needs Credibility Lack of Capacity or Technical Expertise Reasons to Outsource Strategic Focus Industry Standard Research Lack of Capacity or Technical Expertise The reasons for an HEOR department outsourcing its work are many. Some companies simply do not have the capacity to perform the work in-house. Activities such as economic modeling and chart reviews are very labor intensive and departments frequently do not have the manpower to perform the work themselves. Another frequent reason for outsourcing is lack of technical expertise. Economic models can become so complex that small HEOR departments often do not have an employee with both the capacity and expertise to build an appropriate model. There is no way we would have the expertise to program the model and create a graphic user interface so we always work with research groups (Top 25 Pharma). Outsourcing to a firm that specializes in economic modeling is frequently the best solution. Data Needs Health economics and outcomes work requires an immense amount of extremely expensive data. A significant proportion of that data must be purchased or in-licensed for the work to be performed in house and HEOR departments do not always have access to all of the data necessary to accomplish desired analyses or studies. Buying a whole database for one study so that your own people can do the work doesn t make sense (Top 25 Pharma). Working with external research groups or vendors allows access to the needed data without the HEOR department having to purchase the entire costly database Preview of: Benchmarking the Pharma Industry s HEOR Functions 8

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