1. In Vivo
  2. >>Business Strategy

Pharma/Payor Deals An Important Step In The Shift To Value-Based R&D

Three major drug makers inked broad alliances with the research departments of major US payors in 2011. The alliances signal that even as pharma drug makers reorients its R&D engines to be more flexible and externally focused in the hopes of shedding risk and cost, such moves are not enough.

2011 was a break-out year for deals between pharmaceutical companies and payors, with three major drug makers – AstraZeneca PLC, Sanofi and Pfizer Inc. – inking broad alliances with the research departments of Anthem Inc., Medco Health Solutions Inc. (now itself a part of Express Scripts Holding Co.), and Humana Inc.(See Exhibit 1.) The alliances signal that even as drug makers reorient their R&D engines to be more flexible and externally focused in the hopes of shedding risk and cost, such moves are not enough. To survive in an increasingly cost-constrained health care environment, biopharma companies need to make a philosophical adjustment, putting greater energy into incorporating market access intelligence into their drug development programs. That means finding a mechanism to get closer to payors.

Over the past 15 years, “all pharmas have attempted to provide robust health outcomes data, but I am not sure...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Business Strategy

Late-Stage GLP-1 Drug Trials Outside The Cardiometabolic Space

 
• By David Wild

A look at Novo Nordisk, Eli Lilly and other companies' late-stage clinical studies of GLP-1 drugs in indications ranging from neurodegeneration to oncology, and alcoholic liver disease to autoimmune conditions.

Rising Leaders 2025: Metsera’s Whit Bernard’s Musical Path To Biotech Leadership

 
• By David Wild

Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.

AI In Drug Discovery: The Patent Implications

 
• By David Wild

A Q&A with DeAnn Smith, partner and co-chair of the Patent Trial and Appeal Board Proceedings Practice Group at law firm Foley Hoag.

Is Advanced AI Revolutionizing Sales Enablement In Pharma?

 
• By Marina Hickson

Advanced AI is revolutionizing sales enablement by addressing training gaps and performance challenges. Used correctly, it can help to bridge the sales-marketing divide, accelerate ramp-up times and provide managers with data-driven insights.

More from In Vivo

Rising Leaders 2025: Namrata Saroj On The Importance Of Authenticity In Ophthalmology

 
• By Sushmita Panda

Namrata Saroj, chief business officer of Ocular Therapeutix, is highly respected in the retina community for her contributions to drug development. She talked to In Vivo about her journey in ophthalmology, leadership philosophy and the importance of authenticity in a close-knit specialty.

Johnson & Johnson MedTech: How To Scale Digital Solutions

 
• By Natasha Barrow

J&J's EMEA head of digital solutions, Julia Fishman, talks about the hurdles in scaling digital innovation and what’s up next on J&J’s innovation road map. Robot-assisted surgery pioneer Ivo Broeders gives his perspective on the difficulties in clinical adoption.

Rising Leaders 2025: Emma Hodcroft On Taking Initiative When “Plan A” Falls Short

 
• By Anabel Costa-Ferreira

Emma Hodcroft, co-founder of Pathoplexus and a key Nextstrain contributor, stresses the importance of career flexibility for young scientists. She urges early-stage researchers to embrace curiosity, using her unconventional path as an example of how curiosity can lead to impactful success.