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(BUS) Biotechnology and Pharmaceutical Companies Achieve The Mos t Valuable Partnering Deals When Comprehensive Payer Strategies Are In

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Biotechnology and Pharmaceutical Companies Achieve The Most Valuable Partnering Deals When Comprehensive Payer Strategies Are In
2013-12-04 13:30:00.248 GMT

Biotechnology and Pharmaceutical Companies Achieve The Most Valuable
Partnering Deals When Comprehensive Payer Strategies Are In Place, According
To New In Vivo Article

Business Wire

BOSTON -- December 4, 2013

Pharmaceutical and biotechnology companies developing new therapeutics are likely missing out on more lucrative partnering deals, according to a new article published in In Vivo: The Business And Medicine Report. This is particularly true of small and mid-sized companies that do not sufficiently and mindfully incorporate healthcare value and payer access strategies into their development process. Industry executives quoted in the article, entitled “Surpassing Expectations: Increasing Deal Value Through Better Drug Value Propositions,” indicate that since most small companies are not properly developing their new drug’s value proposition to payers, even clinically-promising new drugs are likely to face significant payer access restrictions upon FDA approval. These access restrictions effectively diminish a drug’s future revenue stream, and thus negatively impact the net present value calculations (NPV) which drive all partnering deals. A compromised NPV weakens the asset owner’s negotiating position with prospective partners.
Conversely, this also means that asset buyers not incorporating payer access issues into their calculations might find that they overestimated future revenues and thus overpaid. The article additionally explains how many companies are using a legacy approach to healthcare value development and payer strategy without even realizing it, and unintentionally diminishing the value of their assets.

The article presents an effective roadmap for overcoming these issues. When properly conceived, these efforts must commence from the earliest stages. The bottom line is that companies can greatly increase the value of their drug asset by commencing the value proposition development process early in clinical development, and building an appropriate and proactive payer strategy. With these in hand, companies can position themselves to create greater interest in their asset from prospective partners, and to increase the value of their partnering deals.

Here is a link to the article:

http://www.elsevierbi.com/publications/in-vivo/31/10/surpassing-expectations-increasing-deal-value-through-better-drug-value-propositions

The article was written by Michael Russo and David Balekdjian, Partners at The Bruckner Group. For more information, email David Balekdjian ([e-mail]).

About The Bruckner Group: Bruckner provides strategic advice to pharmaceutical and biotechnology company executives. Bruckner is the pioneer and the industry’s leading expert in healthcare value and payer strategy. Bruckner’s unique approach makes clients’ drugs “payer-proof.”

Contact:

The Bruckner Group
David Balekdjian, 781-245-4454, x222

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