Professional Documents
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Commerce - June 2024 Issue PDF
Commerce - June 2024 Issue PDF
A LogiPharma Europe reflection Tapping telehealth gains Challenge from cash pharmacy
JUNE 2024
VOL. 19 NO. 3
INSTRUMENTAL TO
YOUR SUCCESS
INSTRUMENTAL TO
YOUR SUCCESS
ADHERENCE AID:
RWE & AI
MEDICINES FOR
THE PLANET
Building a sustainable
legacy in supply chains
The data-tech convergence that
could transform drug compliance Find podcasts, webinars,
and expert interviews at
pharmaceuticalcommerce.com
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your sustainable
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CONFERENCE CONNECT
6 'Maturity' Matters
FEATURE
VALUE & ACCESS
7 Justifying Price Fairness
HEALTHCARE REFORM
8 Making Telehealth
Flexibilities Permanent
BRAND INSIGHTS
9 Value-based Healthcare Delivery
INSTRUMENTAL TO
YOUR SUCCESS
COMMERCIALIZATION CORNER
10 Who Moved My Prescription? Part IV
PATIENT SUPPORT
14 Combining AI and RWE to Bend
the Adherence Curve
DRUG PRICING
Subscribe to our newsletters for
24 The Value of Dynamic Pricing practical tips and valuable resources
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pharmaceuticalcommerce.com 3
PUBLISHER'S NOTE
INSTRUMENTAL TO
YOUR SUCCESS
MIKE HENNESSY JR
Founder
Mike Hennessy Sr President and CEO
1960 - 2021 MJH Life Sciences
FROM THE EDITOR
of our attendees to be using. The venue's great. ...For the vast majority of those who
attend, it is actually quite easy to get to. It’s a bit of a break from the office—it takes you
Overcoming Supply
away. It puts you in a different headspace. It makes you engaged in the event for two or
three or four days, or however long you're INSTRUMENTAL
here. TO we're going to stick here for at
I think
Chain Challenges
YOUR SUCCESS
least the next couple of years.” CHIP DAVIS, president
I can only imagine the hype that is expected to surround next year’s milestone show, and CEO of the Healthcare
Distribution Alliance,
especially with 70% of exhibition booths already being booked. recaps its Distribution
Perhaps the limited availability should come as no surprise, given the invaluable benefit Management Conference
that events like these offer. I thoroughly enjoy the “organized chaos” that they present, and discusses current
preparedness levels for
and from an editorial perspective, they always serve as a great reminder that content DSCSA compliance.
continues to be king. Particularly actionable content. Whether in the form of articles,
Q&As, podcasts, videos, you name it, shows such as LogiPharma Europe spotlight the
valuable opportunity to leverage and expand one's Rolodex of KOLs in the industry to
further educate our most valuable asset—our readers—and to help them make sound and
informed decisions in their daily practice. PC
pharmaceuticalcommerce.com 5
CONFERENCE CONNECT
'Maturity' Matters:
Fortifying Two Key Cogs
of Pharma Supply Chain
LogiPharma Europe captured many timely topics,
including the importance of next-level approaches
in aligning temperature-controlled transit and visibility.
By Nicholas Saraceno
E
choing the sentiment expressed in our recently published visibility, quality, and reactivity?”—particularly piqued my interest
Cold Chain Solutions eBook (see bit.ly/44Yg9vT) that for covering the relationship between two of Pharma Commerce’s
explored the trends and highlights thatINSTRUMENTAL
came outTOof largest topics: product visibility in the supply chain and the cold
YOUR SUCCESS
LogiPharma Europe, this year's April show provided a chain specifically.
unique forum for discussion and dialogue across the distribution Tony Fonk, president and CEO of SpotSee, moderated the
and healthcare logistics landscape. panel, and was joined by Amy Shortman, a logistics representative
The event was again hosted at the Centre de Congrès de Lyon with Despir Logistics; Cesar Gil Martinez, director of procure-
in Lyon, France, and as Jake Brown, LogiPharma’s sponsorship ment logistics, EMEA, Bayer; Tomas Fant, temperature-controlled
director, stated in its recap (see bit.ly/3yFiyji), it “continues logistics project lead, Pfizer; Marie Berranger, cold chain logistics
to be the only event globally where you can meet all the key project and launch manager, Galderma; and Linus Wollentz,
stakeholders within the life sciences supply chain.” senior manager, Envirotainer.
About 2,000 people attended the show's 24th installment, which When asked what "digital maturity" meant to her, especial-
featured numerous sessions revolving around the following themes: ly in terms of digital capabilities and temperature-controlled
• “Not another dashboard! How to infuse pulse into your supply operations, Shortman mentioned that “digital maturity is really
chain operation.” about understanding the value of the data that we’re feeding
• “How can you transform digital capabilities in your through those digital services provides. So it’s making sure that we
temperature-controlled supply chain to improve visibility, understand how we’re using visibility and using that to really drive
quality, and reactivity?” down risk and add value to the customer. What we’re seeing in the
• “Why must our industry collaborate to reach its most ambitious market in a general sense is that not all players within the supply
sustainability goals by 2030 and what is required to meet them? chain ecosystem and logistics ecosystem are at the same level of
• “How can you implement scalable networks to overcome the digital maturity.”
challenges of complex supply chains for personalized therapies?” These were words that truly resonated with me, being that they
• “Properly applying diversity, equity, and inclusion initiatives served as a reminder to all pharma stakeholders: never lose sight
within the life sciences supply chain.” of adding value to the customer.
Nicholas Saraceno
6 JUNE 2024
VALUE AND ACCESS
Economic perspective
Given different income levels in countries of other countries with a lower income level provided that individual governments pay their
around the world, the question is wheth- without any consideration of differences in fair share and don’t abuse it through price
er adoption of prices adjusted for gross GDP between countries. referencing and authorized importation, as
domestic product (GDP) yields better recently authorized by the FDA for Florida.
commercial results for a drug manufacturer
NATO contributions
than a fixed price across countries (if that Fair government?
NATO countries are bound to contribute
was even feasible given price controls). As Government payers use their monopsony
2% of their GDP to NATO, yet only 11 of
variable production cost of most pharma- INSTRUMENTAL TO powers to demand lower prices. Individual
the 30
YOUR NATO member states contribute the
SUCCESS
ceuticals is relatively low, price adjustments companies usually have no choice other
agreed upon income-adjusted share. Former
to address local affordability tend to lead than either accepting the price or staying
President Trump’s undiplomatic style of
to a higher financial contribution to cover locked out of local sales. Companies are not
raising the issue with European countries was
global infrastructure and fixed organization allowed to coordinate with other companies
not ideal, but it did raise broader awareness
cost. However, the use of international price to break through the government’s
that despite European concerns over
referencing by higher-income countries can purchasing power, as this would be deemed
Vladimir's Putin’s expansion interests beyond
pose serious challenges to this strategy. collusion. Just like with guns, European
Ukraine, they don’t pay their fair share,
even after adjustment for GDP. For drugs, governments don’t pay their fair share
Fair Prescription Drug Prices we don’t accept GDP adjustments for price, for drugs. Many countries demand price
for Americans Act while for guns, we accept that countries pay reductions for drugs when they exceed
Medicare price controls, introduced through less than their GDP adjusted share. budgets that did not adequately fund aging
the Inflation Reduction Act of 2022, did not populations and growing healthcare needs.
satisfy the appetite for US government inter- What is fair?
vention in prescription drug pricing. The Fair One might ask: Why should I pay more for Shifting US policy
Prescription Drug Prices for Americans Act my medications than my friends in London or Rather than attacking the drug industry on
was introduced on April 19, 2023. It includes Rome? Is it fair to not pay the same? What’s its pricing, shouldn’t the US government
regulations that the retail list price in the US the point of working hard for more income if help the industry to fight unfair price
for a drug or a biological product may not each product is priced based on income level? control practices that systematically leech on
exceed the average retail list price for the On the other hand, if patients cannot afford US subsidies, similar to lack of funding of
drug or biological product among Canada, it, then the cost of covering drug company the joint NATO task? PC
France, Germany, Italy, Japan, and the UK. overhead will have to be funded by the ones
This bill proposes to establish maximum US who can, but at even higher prices. For this
For the list of references associated with this
drug prices through the international price reason, it makes economic and social sense to article, please view the online version at www.
referencing principle, using prices in a basket accept “differential pricing” across countries, pharmaceuticalcommerce.com.
pharmaceuticalcommerce.com 7
HEALTHCARE REFORM
Flexibilities Permanent
tinue to be an option for patients who
lack access to the resources needed to
participate in video-based telehealth.
• Allows employers to offer telehealth
If Congress doesn't act soon, it could result in more health inequities.
benefits for seasonal and part-time
workers. Increasing access to some
M
telehealth benefits for part-time
illions of people enrolled in How Congress can act employees, seasonal workers, interns,
Medicare have benefited from Over the past couple of years, several bills new employees in a waiting period
the telehealth flexibilities to permanently extend telehealth flexibilities can be a meaningful way to support
that were granted during the for people enrolled in Medicare have workers—as long as this access sup-
COVID-19 pandemic, and, subsequently, been introduced with bipartisan support. plements health insurance purchased
extended in 2022. However, without Con- This includes the Creating Opportunities by that individual or a family member.
gressional action, these flexibilities will end Now for Necessary and Effective Care • Drives better and more coordinated
on Dec. 31, 2024—impacting access and Technologies (CONNECT) for Health Act care for those with chronic disease by
leading to further health inequities. of 2023 (H.R. 4189), introduced by Rep. ensuring adequate reimbursement for
Mike Thompson (D-CA). While there are remote patient monitoring technology.
Demand for telehealth services similarities between various telehealth bills,
Since the pandemic, patient and provider
Telehealth flexibilities have played a critical it is important
INSTRUMENTAL
YOUR SUCCESS
TO that a final telehealth bill
groups have advocated for legislation that
role in expanding access to care and main- that is passed and permanently extends
recognizes the value of telehealth services
taining continuity of care, especially those flexibilities includes the following:
for Medicare beneficiaries. Congress must
living in rural communities and underserved • Expands patient access to telehealth
not wait until the end of the year to pass
areas. For individuals requiring access to services by removing geographic and
legislation that already has bipartisan
advanced specialists, mental health provid- originating site limitations to enable
support. We at PAN urge Congress to act
ers, and those with mobility issues or lack of patients to communicate remotely with
now2 to pass telehealth legislation that will
transportation, telehealth flexibilities have their providers, regardless of location.
positively impact millions of people in the
served as a much-needed lifeline to care. • Removes distant site provider list re-
US and their healthcare journeys. PC
According to a national poll conducted strictions to allow all Medicare providers
by the PAN Foundation’s Center for Patient who deliver telehealth-appropriate. REFERENCES
Research,1 nearly one-third of adults who use services to provide those through tele- 1. early Half of Adults Who Use Telehealth Face
N
Barriers to Accessing Services. PAN Foundation.
telehealth services say they do so to refill their health. Providers would include physical
April 17, 2024. https://www.panfoundation.org/
prescriptions (30%), to address less serious and occupational therapists, speech-lan- nearly-half-of-adults-who-use-telehealth-face-bar-
health issues (28%), and for mental health guage pathologists, and social workers. riers-to-accessing-services/
2. Urge Congress to Expand Telehealth Flexibilities
support (28%). Clinicians have used telehealth • Ensures that federally qualified health
Before it’s too Late! PAN Foundation. https://
to expand access to care for patients and to centers, critical access hospitals, and www.votervoice.net/PANFoundation/Cam-
support strong patient relationships, and they rural health clinics can furnish tele- paigns/114714/Respond
value the flexibility created by the option health in Medicare and be reimbursed
for remote care when clinically appropriate. fairly for those services.
Important safety-net providers such as com- • Removes in-person requirements ABOUT THE AUTHOR
Amy Niles is Chief
munity health centers and rural health clinics under Medicare for mental health ser-
Mission Officer at PAN
have depended on these flexibilities, as have vices furnished through telehealth and Foundation.
clinicians such as physical, speech, and occu- telecommunications technology.
pational therapists to extend access to patients. • Allows the Centers for Medicare &
8 JUNE 2024
BRAND INSIGHTS
SPONSORED CONTENT
A
s healthcare is moving toward the shared goal of improv- healthcare provider footprint, which combines data from both its
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the spectrum are increasingly aligned with the principles source of the data itself, Veradigm can help you uncover otherwise
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INSTRUMENTAL TO
key stakeholders: providers, payers, and biopharma YOUR SUCCESS The
companies. ity improvement registry, capturing data on coronary artery disease,
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• Veradigm metabolic registry: The first clinical ambulatory
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What is the Veradigm Network? • Real-world evidence: Data- and platform-enabled research ser-
Some healthcare companies provide clinical data, others deliver vices, capturing the full spectrum of real-world evidence generation,
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pharmaceuticalcommerce.com 9
COMMERCIALIZATION CORNER
I
n Part I of this series, I covered what received a standing ovation and even an see it play out in our primary research, and
is happening; in Part II, I introduced “amen” from the back of the room. our manufacturers finally see it in the data.
why it’s happening; and in Part III, I Let me explain as I’m sure 99% Pharmacies are actively moving away from
unpacked why this is a hard problem for of people will think that I’ve lost my brands and in many cases stop supporting
the pharmacy to solve on their own with marbles. As noted in prior columns, 90-day fills and return to 30-day. The losses
pharmacy benefit managers (PBMs) and retail pharmacy has reached a breaking to pharmacy are simply too intense.
wholesalers bundling their reimbursement point due to sourcing and reimbursement Cash pharmacy is nothing new.
and cost of goods. In this installment, I pressures, with a third of community We’ve seen this since 2004 when Walmart
open the door to what is likely to occur in pharmacies poised to close by mid-year announced the first $4 generics and see
the general medicine (non-specialty) part and reimbursement rates at all-time lows, it today with Amazon Pharmacy and
of the pharmacy market as a result of pharmacy deserts on the rise, and stories Mark Cuban's Cost Plus Drug Company.
these challenges with pharmacy. of pharmacies struggling to service what Pharmacies are selling product at their
I presented at the National business they have. I was told directly by wholesale cost hoping for a $15 mark-up
Community Pharmacy Association community pharmacy leadership to tell our to cover the cost of operations and their
terovesalainen - stock.adobe.com
Multiple Locations meeting in March pharma clients that community pharmacy professional services.
and was asked where I see retail is walking away from brands, and we are What is rapidly becoming new, though,
pharmacy going. My answer was simple: moving our pharmacies to cash. Based on is cash pay for brands. My consulting
it’s highly likely that it returns to what the hundreds of discussions I have with all firm, Blue Fin Group, conducted a project
it looked like before the PBMs got flavors of retail pharmacy, I’m confident for a manufacturer opening a direct-to-
involved—to a cash market. The answer this is more than threats and conjecture. We patient pharmacy, similar to the recently
10 JUNE 2024
COMMERCIALIZATION CORNER
announced Lilly Direct. The impetus for bottle for decades. While I personally think the novel science that tries their hand
this move was data reflecting that when insurance works very well for orphan and at the specialty lite price point, they can
the product was covered by the insurance rare disease products, we are seeing states expect a rigorous prior authorization and
plans, the market was more suppressed push back by capping prices. We see cell likely relegation to a third- to fifth-line
than anything. What was bizarre was that and gene therapy products without medical therapy. Where brands are not excluded,
the demand for the molecule shot up to 3x policy being set. Specialty is set to go patient out-of-pocket (OOP) costs have
the demand for the brand. So the following through its transformation for the balance grown alongside an expansion in high
notion was considered: As opposed to paying of the decade, with roughly $240 billion deductible plans, which now account for
all these discounts to PBMs, great purchasing at risk to conversion to biosimilars and ~30% of commercial lives.4 Given the
organizations, and distributors, and then specialty generics. But with general medicine sharp increase in abandonment above
hearing from pharmacies that they still lose already converted to generics for 92% of all $50 copays,5 manufacturers have been
money, why don’t we just sell through the prescriptions and pharmacies declining to driven to spend ever more, driving down
cash vehicle? The product could rid itself fill brands due to profit loss, this last market OOP through copay cards and patient
of prior authorizations and step edits, no is ripe for disruption back to cash. assistance programs, while battling copay
more suppressed pharmacy economics, and PBMs are asking for all-time high accumulators and maximizer programs.
practically complete control of the price to the rebates if generics are available in the Many products in the branded general
patient/consumer. Sounds lovely, doesn’t it? drug class, and national drug code blocks medicine space are obsessing on how to
In my opinion, we have been trying have skyrocketed from about 50 in 2013 get a $35 OOP to patients while charging
to put the proverbial genie back in the to more than 700 in 2024.1-3 And for $600 to $800. This game appears to be
INSTRUMENTAL TO
YOUR SUCCESS
pharmaceuticalcommerce.com 11
COMMERCIALIZATION CORNER
nearing its end. And with the Inflation of PBMs with national pharmacy chains based coverage for general medicine
Reduction Act and most favored pricing, and insurers, or consolidation among all brands support is at a crossroads. PC
wholesale acquisition cost reductions, three. This began with Rite Aid’s acqui-
and more on the way, the message from sition of PCS from Eli Lilly in 1998 and
government, commercial payers, and plan Express Scripts’ acquisition of DPS in REFERENCES
1. Performance Drug List - Standard Control for Cli-
sponsors is to stop pricing products high 1999, but was most notably marked by
ents with Advanced Control Specialty Formulary.
because that’s how you think the game is consolidation a decade later of CVS and CVS Caremark. January. 2024, www.bsu.edu/-/
played. The PCSK9 class was the poster Caremark, and Express Scripts and Medco. media/www/departmentalcontent/payroll/
pdfs/oe-2024/medical---prescirption-plans/
child of that. And it appeared when it These moves aligned two of the country’s
p11---performance-drug-list-2024.pdf?sc_
came time to launch the CGRPs for largest pharmacies with two of the largest lang=en&hash=21B89DC77C0880F3E0224F0EF-
migraine, the message was received. PBMs. Concurrently, UnitedHealth clawed 3291764427B7CF7.Accessed 28 Apr. 2024.
back its $11 billion drug benefits business 2. 2024 National Preferred Formulary Exclu-
sions. Express Scripts. April 1, 2024. www.
from Medco and consolidated pharmacy
Rewinding on PBMs management into Optum.7
express-scripts.com/files/hub/pdf/formulary/
NPF_Preferred_Formulary_Exclusions2024.pdf
and pharmacy benefits Recall that Medicare was cash up until 3. 2024 Premium Standard Formulary. Optum Rx.
As my wife likes to remind me, everything January 1, 2024. www.optum.com/content/
2006 when we added Part D via the Medi-
dam/o4-dam/resources/pdfs/guides/formular-
eventually comes back around. Cash care Modernization Act. But Medicare ies/Jan2024_Premium_Standard_Abridged_508.
pharmacy is not a new concept. It’s is now going through its evolution with a pdf. Accessed 28 Apr. 2024
the original form of pharmacy and has 4. 2023 Employer Health Benefits Survey, Section
$2,000 OOP cap that comes in 2025. All
5: Market Shares of Health Plans. KFF. December
continued to exist for at least some portion that sounds great if that patient can find a 8, 2023. www.kff.org/report-section/ehbs-2023-
INSTRUMENTAL TO
of patients. That portion is growing. pharmacy
YOUR SUCCESSwilling to dispense the brands section-5-market-shares-of-health-plans/
It’s good to remind ourselves that the that currently run at $50- to $200-a-month 5. The Use of Medicines in the US 2023. IQVIA. May
2, 2023. www.iqvia.com/insights/the-iqvia-insti-
presence of PBMs and pharmacy benefits is losses on a growing number of branded tute/reports-and-publications/reports/the-use-
relatively recent in the scheme of things. The drugs. Reimbursement is going down and of-medicines-in-the-us-2023
first entities appeared in the 1960s. These pharmacy costs of goods are going up. 6. Cook, A.; Kornfield, T.; Gold, Marsha. The Role of
original PBMs were founded by pharmacists PBMs in Managing Drug Costs: Implications for a
I, and those in my firm, see the science,
Medicare Drug Benefit. January 2000. KFF. www.
and initially focused on claims processing its value, and its demand being challenged. kff.org/wp-content/uploads/2013/01/the-role-
while reimbursing pharmacies at their usual The GLP-1s are a great example. Great of-pbms-in-managing-drug-costs-implications-for-
and customary cash price; notable examples a-medicare-drug-benefit.pdf
science. Great clinical profile. Benefits
7. Overland, D. UnitedHealth Brings Back PBMs in
include PAID Prescriptions founded in 1965 appear to be building by the day, and with House. Fierce Healthcare. June 10, 2011, www.
and Pharmaceutical Card System (PCS) in limited coverage, patients are coming OOP fiercehealthcare.com/payer/unitedhealth-brings-
1969. The 1970s and 1980s saw significant for $900-$1000/month. A majority of back-pbms-house
8. Why 'Cash' Pharmacies are Booming—and What
shifts with vertical and horizontal integra- patients are already willing to situationally it Means for Health Care. August 24, 20222.
tions, driven by cost-containment strategies pay cash when it results in short-term www.advisory.com/daily-briefing/2022/08/24/
allowed by the Employee Retirement Income cost reduction,8,9 and pharmacies and cash-pharmacies
Security Act. In the 1990s, manufacturers 9. Rewriting the Script: Independent Pharmacy Trends.
manufacturers are realizing that the future
2022 Research Report. Prescryptive, October 10,
began to acquire PBMs, such as Merck with of retail pharmacy, cash pay, insurance- 2023. prescryptive.com/2022-pharmacy-study/
Medco and Eli Lilly with PCS. However, this
model was relatively short-lived with both
spinning the PBM back out within 10 years,
and with Eli Lilly recouping only a quarter ABOUT THE AUTHOR
of its purchase price.6 Bill Roth is the SVP of IntegriChain’s consulting business, which
includes Blue Fin Group, a strategy consulting company he started
The durable, impactful, and now-recog- in 2001, and the IntegriChain advisory services business.
nizable model borne out by the 1990s
through the 2000s is the vertical integration
12 JUNE 2024
Safeguarding Time- and
Temperature-Sensitive
Pharma: Quality Management
for Ground Transport
Event Overview
Join transportation crime and theft specialist Scott
Cornell, Travelers Insurance, and logistics technology
solutions expert Wes Kerbuski, DeSpir Logistics, as
they share quality management and in-transit security
best practices for critical treatments, medicines, and
devices.
INSTRUMENTAL TO
YOUR SUCCESS
Moderator
Jeanne Linke Northrop
Managing Editor
Pharmaceutical Commerce
Sponsored by Presented by
INSTRUMENTAL TO
YOUR SUCCESS
Combining RWE I
t’s widely understood that poor adherence to prescribed
medication regimens has far-reaching clinical and cost
implications for all healthcare stakeholders.
For example, patients who never start or don’t stay
and AI to Bend
on prescribed treatments fail to control their symptoms
and often experience disease progression and increased
morbidity and mortality. Insurance companies end up
paying for expensive medical interventions that could have
By marrying the two, pharma stakeholders can identify new brand when their often life-saving medicines—which were
opportunities to tailor interventions in a way that is most proven to be safe and effective in clinical trials—fail to
impactful to patients—helping them overcome roadblocks deliver on their promise due to adherence lapses.
“Additional tangible and intangible societal costs
in initiating and maintaining therapy.
arise in terms of job loss and reduced work productivity
By Suzanne Shelley, Contributing Editor for both patients and caregivers,” says Pierantonio
14 JUNE 2024
IN FOCUS
pharmaceuticalcommerce.com 15
IN FOCUS
1. System-related: Challenges
that relate to access to healthcare
resources and communication meth-
odologies and format that may not
be in the patient’s primary language.
2. Treatment-related: Obstacles
such as cost issues, complexity
of the drug-administration
requirements, and the impact of
adverse effects.
3. Patient-related: Challenges
that connect back to comorbidi-
ties, management of side effects,
mental health issues, and other
considerations related to social
determinants of health (SDOH).
Experts believe any opportunity to the factors that impact adherence, so a large
build an algorithm that accurately reflects amount of control is lost,” says Mack. Fortrea, and adjunct assistant professor at
patient behaviors in the real world can feed She notes that the types of adherence Columbia University’s Mailman School of
further understanding of the many barriers challenges patients face can be organized Public Health. “Brand teams can be more
patients are facing, and from there, "then broadly into the following three buckets: effective in how they engage with patients
16 JUNE 2024
IN FOCUS
pharmaceuticalcommerce.com 17
IN FOCUS
from the medication,” he says. “For the is a key component to adherence, and a into different clusters and recognizing those
most part, we do not change the branded place where leveraging AI and RWE can patient sets that are most likely to encounter
program offerings and messaging that the drive improvements. In a recent study in adherence issues can help when developing
pharma company has already developed. Germany, IQVIA leveraged local RWD to personalized outreach methods.
Rather, by studying and modeling more identify and profile unmet needs among IQVIA is working to use NLP to
than 500 different variables related to their asthma patients, based on demographics simplify medical terminology for patients
preferences and behaviors in the past, and other clinical drivers, leading to a 17% (removing a common adherence barrier),
we can deliver decision intelligence that reduction in uncontrolled asthma in six and has developed an AI-powered patient-
allows the brand team to proactively target months following new treatment initiation. relationship management tool, which, Mack
the timing and fine-tune which program says, is being used by several pharma brands.
elements reach which patients at what time.” RWD sources that provide “The chatbot can digest the patient’s
In one example working with a pharma insights into patients’ lives input and route them to the most
brand that offers a therapy for a major Traditionally, identifying non-adherent appropriate person or resource to triage the
depressive disorder (MDD), AllazoHealth’s patients has relied on direct inquiries, situation in a personalized and accurate way,
AI platform was used to predict which surveys, and analysis of pharmacy data for allowing both patients and physicians to
patients were at risk of non-adherence missed refills, notes Ramaa Nathan, PhD, overcome barriers in access and affordability
to their MDD medication, determine VP of data science and RWE insights, to promote adherence,” she adds.
the most impactful email content to EVERSANA. However, both approaches Meanwhile, AssistRx’s patient-support
address that risk, and personalize the are costly and time-consuming; frequently, programs currently use voice/tonal
communications for each patient. they do not allow for the discovery of all recognition technology to identify, address,
According to Grambley, doing so boosted non-adherence contributing factors. and report on access and affordability
INSTRUMENTAL TO
first-fill rates by 8.4%, while average time a YOURBy contrast, today’s AI methodologies
SUCCESS challenges patients are facing that can
patient remained on therapy rose by 13%. are able to produce sophisticated pattern reduce adherence. “As AI becomes
Also, emails sent to MDD patients were recognition and build models based more sophisticated, we’re excited for the
2.5 to 4.2 times more effective with AI not only on EHR data, lab tests, and opportunity to be able to flag patient
optimization than those without. phenotypes and genotypes associated behaviors and interactions—live during calls
Meanwhile, AllazoHealth is also with the disease, but can identify relevant with our representatives—that are barriers
piloting an advanced approach to patterns and make predictions related to to access and adherence, then proactively
personalize “dynamic modular content” patient demographic data and SDOH. address those challenges,” says Jordan.
with pharma clients. Consider a matrix “We know these factors play a direct Success in this department, however, will
that involves different versions of the impact on drug adherence and clinical ultimately come down to continuity.
approved subset line, headlines, email outcomes,” says Doyle. “Once we as an industry put these life-
content message, and images that may “Today, we are able to build ML saving therapies out into the world, sustained
resonate differently with different people, predictive models with inputs from patient adherence is one of the most critical
and specific calls to action that relate to extensive datasets, including clinical factors to ensure these products can deliver
different challenges patients may be facing. notes, administrative claims, behavioral on their promise and potential,” says Mack.
“Using our data-driven intelligence, we health profiles, SDOH, patient-reported The ability to implement AI, catered to
are able to drive the optimal combination data, and social media listening for early specific patient needs, as detailed, will be a
of elements from the matrix that will identification of at-risk individuals,” adds major catalyst in these efforts.
provide the most personalized and impactful Nathan. “This provides a superior approach “Any given patient program will always
outreach for any given patient," says over traditional regression methods, as it help some people but not all of the people,”
Grambley. AllazoHealth plans to roll out recognizes complex, non-linear patterns and notes Grambley. “But when you can apply AI
this feature more broadly later this year. its predictive accuracy improves over time to really tailor the options and help patients
Mack adds that having patients on the with the input of new data.” to get exactly the type of support they need at
correct treatment pathway to begin with According to Nathan, classifying patients the right time, it’s kind of magical.” PC
18 JUNE 2024
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FEATURE
A
s the benchmark of a successful business, sustainability immediate performance indicators, but after years of research
and being environmentally focused is more than and catastrophic climate events, ESG is now a major criterion for
a symbol of advancement and efficiency; it is an weighing a company’s longevity.
absolute necessity for a world facing growing ecological The pharmaceutical industry is a global powerhouse, delivering
concerns. Modern organizations must remain cognizant of healthcare and life-saving treatments to billions of people around the
their inefficiencies and their peripheral effects on our planet. To world. As such, this vital sector must contend with making a signifi-
Anutha - stock.adobe.com
bring sustainability to the forefront, environmental, social, and cant carbon footprint. According to one study, the pharma industry
governance (ESG) initiatives are the measures for which modern puts out 13% more pollution than the automotive industry—at a
organizations achieve functional success. Only years ago, many market size less than 30% pharma’s value.1 In the same study, it
companies would consider sustainability extraneous to more was determined pharma manufacturing’s annual carbon dioxide
20 JUNE 2024
FEATURE
emissions were 48.55 tons of CO2e (carbon components of the supply chain with the Closed loop and reverse
dioxide equivalent) per million dollars of internet. This allows operations a robust set logistics solutions
revenue—55% greater than auto manufac- of informed solutions combined with faster,
turing in that same year.2 The supply chains possibly instantaneous, decision-making. The World Health Organization estimates
for life sciences and healthcare are estimated that the pharma industry produces over 300
When combined with data analysis from
to contribute 70% of the overall emissions million tons of plastic waste annually—with
other developing technologies, it will lead to
pharma companies expend, highlighting an single-use plastics estimated to represent
a smarter, more intuitive supply chain with
imperative for change.2 half this number.5 To circumvent this
endless applications for determining ESG
Recent scientific evidence suggests enormous amount of waste, supply chains
initiatives. By elevating the supply chain’s
climate change is rapidly accelerating, use strategies to maximize the lifecycle and
connection to the internet, we take a major
placing ESG initiatives in the spotlight as reuse of packaging assets.
step toward the next industrial revolution—
an inherent component of business.3 In the Through collaborative efforts with
Pharma 4.0—optimized visibility, traceability,
race to curb further damage from pollution, partners, an ESG initiative to return this
predictive maintenance, streamlined
pharma and its supply chains are position- packaging by taking steps to track, return,
transport operations, and increased cross-
ing themselves to lead the way. Fortunately, and recondition in a process of reverse
organizational communication.
awareness of environmental degradation logistics not only saves resources, but
AI joins IoSC to open even more opportu-
has accelerated along with the adoption of prevents these containers from remaining
nities for sustainability. It assesses big data sets
new innovations, and this confluence could indefinitely at a partner’s facility and
to define processes, like analyzing routes and
not arrive at a better time. potentially the landfill. By bringing all
carriers to determine best practices to limit
stakeholders together through a closed loop
emissions, simulated clinical trials, or other
Accelerating sustainable process, we maximize savings on transport
virtual simulations,
INSTRUMENTAL TO thus eliminating product
solutions through technology YOUR SUCCESS expenditures and CO2 emissions while
loss and unnecessary lengthy studies. Also,
keeping partners supplied with packaging
AI will cut out laborious manual processes
At every level in the pharma industry, and returning assets to their original
impacting traditional systems that churn out
innovative technologies are being integrated destination.
to improve and assist in developing complex, paper waste. It promises to bring many other
To enhance this process, radio frequency
ground-breaking novel therapies. These technologies together as the computational
identification tags (RFID) have been incor-
same technologies are also capable of power of standard systems is elevated to new
porated into packaging for tracking and
analyzing big data and developing processes heights through machine learning.
data collection, assisting managers by pro-
for sustainability. While the supply chain is Blockchain, in tandem with these other
viding a robust view on regional quantities
integrating these technologies to optimize technologies, has the potential to create
that perpetually drive this cyclical process.
processes and elevate the movement of some of the most balanced and well-kept
The smoothness of a well-maintained,
ultrasensitive drugs, it simultaneously offers supply chains. Blockchain acts as a digital
closed-loop system is an orchestration of
the opportunity to improve sustainability ledger made infallible by connectivity across
operations teams and sensors collecting
initiatives through advanced data analysis multiple channels to provide a deeper,
copious data on assets that, when enhanced
and improved efficiencies. Digitalization impeccable look at inventory, status, and
with other technology, such as AI and block-
for this new age of healthcare, in the form integrity of medical products across the
chain, organize, manage, and alert when an
of automation, artificial intelligence (AI), entire supply chain.
asset is nearing the end of its lifecycle.
blockchain, and the internet of things or Blockchain logs every step, preventing
more specifically, the internet of supply deficiencies in stock products and where
Human insight fueling
chains (IoSC) (also referred to as a connected they are available for relocation in times of
processes and accountability
supply chain), is shaping new processes and demand. These elevated records facilitate
daily operations, presenting opportunities to sustainability by preventing oversupply and The data for climate change has reached
greatly influence directives for ESG. 4 stockouts, maximizing accuracy of quan- a pinnacle in recent years, after elevated
IoSC offers a major uptick in control, tities for transport, which translates to less media coverage and the release of extensive
efficacy, and optimization by fully integrating trips and fewer carbon emissions. research from the Intergovernmental Panel
pharmaceuticalcommerce.com 21
FEATURE
on Climate Change in 2021 and the World with a robust communication program the efficient processes, the pharma industry
Meteorological Organization’s State of the first year to alert and educate employees and and its supply chains are reaching a new
Global Climate Report from 2022 showing external service providers of our initiatives era of sustainable practices. Likewise, by
overwhelming evidence that global tempera- and their roles in them. This was followed focusing on ESG factors throughout the
tures have reached an extreme level and our by increased involvement the following year pharma supply chain, companies ensure
current processes are inadequate. Acknowl- with targeted areas and metric goals. In the medications we rely on are produced
edging the severity of the issue is the first the final stages, we implemented solutions responsibly. This translates to a healthier
step to bringing about change, and while our for areas that did not achieve objectives. planet and a more sustainable industry
advancing technology will play a significant By following this strategy, Marken met the with better access for patients. While
role in our future, human insight defines the specifications for its EcoVadis reporting and challenges remain, the growing focus
direction, purpose, and adaptability needed adopted additional strategies to move from on ESG initiatives presents a significant
to create a truly sustainable industry. a bronze to silver status within a few years, opportunity for the pharma and its supply
The best ESG practices are designed a unique designation only the top 25% of chains to become leaders in responsible
by experts familiar with the frontlines—sci- reporting companies achieve. manufacturing and distribution. PC
entists, logisticians, and project managers A transparent approach with elevated
using detailed understanding for designing communication to stakeholders is crucial
strategies to address inefficiencies. For our for allowing outside processing to also REFERENCES
part in the supply chain, decarbonization become familiar with ESG initiatives and 1. L otfi, B. Big Pharma Emits More Greenhouse
strategies are important to conserving processes, building on the collaboration Gases than the Automotive Industry. May 27,
2019. https://theconversation.com/big-
resources, and we take every chance to necessary to create change on a large scale. pharma-emits-more-greenhouse-gases-than-the-
consolidate shipments and reduce fuel It is important to keep in mind as a global automotive-industry-115285
consumption whenever possible. Internal INSTRUMENTAL
organization,
TO different countries have 2. Heim, M.; Entrup, C.; Miranda, W.
YOUR SUCCESS Making Biopharma’s Supply Chains More
initiatives play a large part in implementing various approaches to sustainability.
Environmentally Sustainable. Deloitte.
ESG into daily activities, such as eliminating With so many touchpoints in the supply September 20, 2023. https://www2.deloitte.
waste, recycling programs, choosing reus- chain for different projects and regions, an com/us/en/insights/industry/health-
care/scaling-pharmaceutical-supply-chain-
able materials, and ensuring we get the most individual company’s initiatives and ability
sustainability-efforts.html
out of a product. to lower waste is often only as good as the 3. Evidence. NASA. 2019. https://science.nasa.
As headway in ESG is made through next player in the process. This is why a gov/climate-change/evidence/
these areas and record keeping is formalized, well-informed and staged approach brings 4. Seethamariah, S. The Power of a Smart,
Connected Supply Chain. Forbes. February
global organizations are in place to create teams together with a common mission— 17, 2023. https://www.forbes.com/sites/
standards, judge progress, and assess a busi- eliminating unnecessary events and building forbesbusinesscouncil/2023/02/17/
ness’s ESG actions to determine success. reciprocal services to deliver the most out the-power-of-a-smart-connected-supply-
chain/?sh=172929691b18
Founded in 2011, EcoVadis is an of resources.
5. The Pharmaceutical Industry is Prescribing More
innovative solution that empowers To address the inefficiencies in the Sustainable Practices. OWL ESG. November 22,
businesses with assessments and scores pursuit of optimizing sustainability, we 2022. https://owlesg.com/2022/11/22/the-
pharmaceutical-industry-is-prescribing-more-
to award sustainability status. It offers a must master our individual roles throughout
sustainable-practices
novel approach by collaborating to adopt pharma, revealing where there is room
new standards, implementing plans for for improvement and taking action to
controlling waste, cutting emissions, and implement changes to make a difference in
keeping track of all sustainability initiatives. concern of our environment.
Savvy organizations are assessed by their
plan of action and the resulting data Focusing resources ABOUT THE AUTHOR
Craig Wilson is Senior
collected from their ESG efforts. on sustainability Director of Strategic
At Marken, we view ESG as a long game Planning at Marken.
and are in the late stages of a five-year By strategically combining human
campaign assessed by EcoVadis. We began expertise, cutting-edge technology, and
22 JUNE 2024
®
Cold Chain
Solutions A SU PP LE M EN T TO
Supplement: INSTRUMEN
Further
TA
YOUR SUCCL TO
ESS
Exploration
of Pharma’s
Temperature
Controlled
Sector
Post LogiPharma, the editors
INSTRUMENTAL TO
YOUR SUCCESS
of Pharmaceutical Commerce
examine the trends and
highlights that came out of
the conference, specifically
surrounding the cold
TE MP ER AT UR E-
CO NT RO LL ED SO
chain solutions segment. LU TIO NS
This digital supplement
offers an overview of this
niche sector’s value to
COLD CHAIN
the industry, and through
exclusive video interviews
with key opinion leaders
EXPLORATION
and session coverage, A SE CTOR
OV ER VI EW SU STAI NA BL E
provides perspectives from CO LL AB OR AT IO
NS
LO GI ST IC S
& CGTs
subject matter leaders on
issues that they find
most relevant, including
matters pertaining to
third-party logistics (3PL)
providers/day-to-day logistics, supply
DOWNLOAD
chain management, and packaging & monitoring. THE EBOOK
W
e’ve all witnessed the retail, Online marketplaces and aggregators have a
transportation, and travel industries historic track record for debuting new business
undergo a transformation based models, amplifying transparency, fixating on source
on new digital models. Outcomes suppliers’ unmet needs, and obsessing about the
include lower cost, improved safety, more consumer perfect user experience for the buyers engaged
choice, and ecosystems that serve as a haven for a with their applications. Something that would have
ABOUT THE AUTHOR variety of market players to coexist and compete required either the services of a travel agent or hours
Blake Powers is
on price, quality,INSTRUMENTAL
demand, TO
and
YOUR SUCCESS reputation. These of comparative research now only takes 10 minutes.
the CEO of Medigi,
and a member of dynamic pricing models leverage data analytics to Up-and-coming creators and artists don’t need to
Pharmaceutical make pricing decisions that benefit both businesses invest in the overhead of a gallery or peddle their wares
Commerce’s Editorial
and customers through timely, market-aligned on the street anymore; they simply list their pieces online
Advisory Board.
adjustments. Yet, with all the innovation applied to for greater customer reach. So many aspects of our lives
pharmaceuticals, e-commerce has yet to gain traction have changed in the last 20 years, yet what’s fascinating
in the space. Pharmaceuticals stand to benefit with is how within the ecosystem of healthcare providers
the same outcomes as other industries embracing (HCPs) sourcing drugs, it hasn’t really changed at all.
digital approaches to their pricing models. Take, for example, the 90% volume that generic
The recent US Department of Health and drugs represent in the US pharmaceutical market. For
Human Services (HHS) white paper, “Policy HCPs, 80% to 90% of their medication purchases are
Considerations to Prevent Drug Shortages and negotiated on their behalf by their group purchasing
Mitigate Supply Chain Vulnerabilities in the United organization (GPO) as “contracted products.” The
States,” published in April, suggests it’s time to philosophy is that when you combine a GPO member-
reevaluate, noting that “Incentives throughout the ship’s total purchasing power (representing one-third
supply chain must be reimagined to ensure the of the hospital beds in the country), each hospital
resilience and supplier redundancy required to member will have the most competitive price. It’s one
prevent drug shortages from occurring.” less detail for HCPs to worry about, and with multiyear
We habitually use dynamic pricing models in our awards from drug manufacturers committing to a price
daily lives, whether it’s travel reservations, ride hailing for five to seven years, the argument is that it helps
apps, or online marketplaces to stock our pantries pharmaceutical companies better plan for market
or to find the perfect gift. Still, the pharmaceutical demands while ultimately, creating more stable supply.
industry, by and large, has yet to adapt. It still However, this model has its flaws.
depends on older models that rely on long-term price A F rom the reliability perspective, outcomes of the
negotiations that lock in prices. status quo static-pricing model are concerning,
24 JUNE 2024
FEATURE
with drug shortages reaching a report- creating overstocks, and ironically, phar- patient care to find alternative treatments for
ed two-decade high. macy acquisition cost (at a fixed contracted patients.” Contrary to the common assump-
B I t assumes that the sole (or dual) price) would be greater than what it would tion that pharmacy buyers always go for the
manufacturer(s) awarded will have be in a free-market environment. With static cheapest available product, procurement
uninterrupted supply of the product pricing set by long-term GPO bid cycles, it teams do indeed make restrictions/soft blocks
for five to seven years. Are the lowest removes the ability for price points to float on certain national drug codes/manufac-
bidders always the most reliable? into its real-time equilibrium price guided turers because of physician preference; ease
C The model doesn’t encourage other by current supply and demand conditions. of patient administration; reimbursement
players to be ready to serve the market implications; shipment turnaround; lack of
in situations where a hurricane shuts How dynamic pricing is historic reliability; and even the coloring of
down the island of Puerto Rico, or FDA starting to unfold for pharma the label/vial cap. Price is certainly a major
suspends the operations of a produc- dimension of the purchasing decision, but it’s
New digital solutions and dynamic pricing
tion plant due to a failed inspection. not the only factor. A platform that provides
advantages extend beyond the generic drug
D W
ith the trend of M&A, it leaves the the freedom of direct dynamic pricing offers
world. With more branded and specialty-lite
number of major national hospital GPOs a new approach to a supply chain that is
products trending direct, drugmakers often
to three. This means, as a drug company, experiencing no shortages of new challenges.
offer unique price points to certain sites of
if you don’t win the award of a particular The gross-to-net economics of what the
care. For instance, pharmacy-specific prices
GPO, you are boxed out of the market product sells for versus what is retained by the
can be adjusted by the supplier based on
until the time rolls around where the manufacturer at the end of the day is begin-
the precommitted or historic pull-through
other two major GPOs have a bid cycle. ning to have a negative impact. It starts with
volumes of the pharmacy customer.
E I t discriminates against emerging/ INSTRUMENTAL TO the drug company trying to sustain a product
YOURModern
SUCCESS technology now provides pro-
midsized pharmaceutical companies line where 40% to 65% of gross sales are be-
curement professionals with real-time optics
because the sheer volume of the bid re- ing consumed by pharmacy benefit manager
into what’s available at the manufacturer level
quires enormous production capacity. rebates, higher distribution fees, chargebacks,
and allows for more convenient, open trade.
F L ong-term prescription demand is tough 340B penny pricing, and GPO administra-
to forecast and often the expected vol- tion fees. After all the upfront expense of
Would a free-market
ume of the awarded product does not R&D and manufacturing capabilities, the
system create price erosion?
match up with the actual pull-through costs of the active pharmaceutical ingredient
(creating excess supply, risk of waste By its very nature, dynamic pricing does not and labor, and obtaining FDA approval, it’s
for manufacturers, or shortages). discriminate. In moments of abundance, becoming a greater challenge to forecast the
prices tend to decrease, and in situations of viability of a product once pharma compa-
Artificially setting fixed price points scarcity, prices most always bounce up. The nies analyze the bottom line of what it takes
insulates the pharmaceutical supply chain price equilibrium in a dynamic pricing model to also launch and distribute the product.
from the basic economic law of supply and is discovered immediately. With prenegotiated Arguably, the costs should be lower for
demand. If the price is set too low, only the long-term pricing models, it delays where the manufacturers to digitally price and distribute
largest players (or those with the thinnest market price should really be at. their drugs to HCPs and their patients. Having
margin tolerance) can compete with the Considering the number of backorders the ability to manage price based on real-time
economies of scale necessary to make the and the influx of volatility in medication market data puts companies in control, pre-
math work, and such concentration only supply, drug manufacturers who can deliver venting unstainable erosion, and allowing for a
leaves the supply chain more vulnerable to reliable supply at fair market prices should more rapid response to any unmet needs.
shortages. It doesn’t entice other manufac- be the ones positioned for success. The Is it time to contemplate medications as
turers to stay or enter into the space. aforementioned HHS white paper states, we do other commodities, embrace digital
If the contracted price is set too high, “hospitals can spend at least $600 million formats, and allow for more dynamic pricing
you’ll have too many manufacturers per year managing shortages and diverting to occur? Perhaps this shift in thinking is just
producing the same product in the market, essential personnel who are needed for direct the remedy the drug supply chain needs. PC
pharmaceuticalcommerce.com 25
LAST WORD
1
DESIGN AND ENABLE
Too often, customer engagement models
that are well-designed end up being
unsuccessful because they run contrary
to existing organizational structures.
Competing priorities across teams,
misaligned corporate objectives, and a lack of senior
leadership vision are the main reasons these
initiatives fail. Therefore, enablement is as important
as the design of the customer engagement model. To
successfully deploy these models, companies may
have to break through the internal silos that were
built for a different, brand-driven era. An ideal model
must truly cut across teams, and a company must
put in place the proper incentives to facilitate this
unified approach. In the end, companies should
ensure that all practitioners engaged in the effort
work toward the common, patient-centered goal.
2
PRIORITIZE PATIENTS, BUT
CONSIDER ALL INVOLVED
Companies should prioritize patients as
the North Star of their commercial
efforts but also address all the players
About Patient Centricity? teams must ensure they understand the treatment
and emotional/decision journeys of all stakeholders,
the different needs they have, and the barriers they
Companies need to alter their thinking to better prioritize patients.
need to overcome in order to best serve the patient.
R 3
GO ALL IN (I.E.,
ising cost pressures demand at the forefront of their commercial DON’T PHASE IT)
more efficient operations. strategies. One of the keys to making A company should ensure it does not
Micro-launches are creating this shift is for a company to broaden its fall into the slippery slope of having the
shorter go-to-market runways. perspective on promotional tactics. Even right design and enablement model for
customer engagement but then
The continued rise of specialty drugs with if its current tactics—such as robust social
pivoting around short-term, brand-focused objectives.
small patient populations puts increased media campaigns or healthcare provider Too often, drugmakers end up in this situation because
pressure on companies’ promotional education initiatives—are highly effective at the time of enablement of the model, they start
efforts. In this landscape, there are many individually, they often optimize local characterizing it as a big initiative with a large price
ideas for how to improve commercial focus impact rather than overall effectiveness. tag, are unwilling to garner rank-and-file support for it,
or feel overwhelmed by the need to continue investing
and effectiveness. However, maximizing Therefore, instead of focusing solely on
in the model’s evolution. Therefore, companies need to
the impact of commercial efforts starts tactics, a company should adopt a holistic
think in a bit more like a purist and ensure they see the
with putting patients first. In addition to “customer engagement model.” Since model right through to the end. PC
being the right choice ethically, it has also patient-centric decisions involve multiple
become strategically imperative (hence, stakeholders, companies need to engage
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