building a compelling value proposition · building a compelling value proposition. harris kaplan...
TRANSCRIPT
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Building a Compelling Value Proposition
Harris Kaplan Managing Partner, Red Team [email protected] (410) 215 9595
John Farah, PhDManaging Director, Red Team [email protected] (215) 805 5630
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Meeting Overview
Welcome!
Why Building a Compelling Value Proposition (CVP) is Critical?Presented by John Farah, Managing Director RTA
Developing a Compelling Value PropositionPresented by Harris Kaplan, Managing Partner, RTA
Questions & Final Thoughts
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Today’s Presenting Faculty Harris Kaplan, Managing Partner, RTA
‒ Harris has 40 years of experience in the life science industry, with clients ranging from large cap public to small cap private companies
‒ He has been involved in the development and commercialization of over 100 products (such as Lipitor, Crestor, Viagra, Seroquel, Humira, Vyvanse, Incivek, Kalydeco) and has worked with a variety of early stage compounds
‒ Harris is also an advisor to Thomas McNerney, De Novo Ventures, and Frazier Ventures
John Farah, Managing Director, RTA
‒ John has 30 years of experience in the life science industry, currently advising clients from early-stage to large cap public companies domestically and abroad
‒ Formerly in R&D at G.D. Searle & Co. investigating CNS and inflammatory disorders (Celebrex) and Cephalon, Inc. (now Teva) as VP of international operations in business development, partnering & support of the products: Abelcet, Actiq, Gabitril, Fentora, Myocet, Nuvigil, Provigil, Treanda & Trisenox
‒ John is an independent director of Aeolus Pharmaceuticals, formerly on the board of GenSpera where he continues to advise the CEO, and was treasurer of Cephalon’s political action committee
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Meeting Objectives
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To define what a Compelling Value Proposition (CVP) is
To highlight why a CVP is needed today and when a CVP should be created
To provide the strategic framework required to create a CVP
To outline a process to develop a CVP
Discussion and Questions
Enjoy the Journey!
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Red Team Associates
Deep industry and client side experience
Broad situational experience
Unbiased thinking
Identification of value and business drivers
Actionable Strategies
Understand
Anticipate
Adapt
Avoid future surprises
Act with confidence
When there’s a lot of money at stake
When the decision(s) are hard to undo
When you need to decide quickly
When there are multiple potential options
Situations for Engaging Red Team AssociatesOur Philosophy
A Strategic,Life Sciences Consultancy
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Situations Where We Have Added Significant Value
No commercial team
Indication prioritization Commercial opportunity assessment Product Positioning, build commercial story for pitch deck Initial forecast
Don’t want to divert the commercial team
Due diligence Business development Development of go-to-market strategy
Want a second point of view
Re-affirm forecast and opportunity Develop alternative go-to-market strategy Targeting, positioning, messaging and pricing
Knowledge/expertise gap (new category)
Opportunity assessment Forecast Valuation Go-to market strategy development
Underperforming brand
360º assessment of situation Value driver analysis Refine or rework existing tactical execution plan
Client Situation Red Team Activities
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Why Building a Compelling Value Proposition is Critical?
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Goal: Help you to create a commercial value proposition that will drive clinical decisions, investor interest and a higher valuation
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Concise
Clear
Convincing
Cost-effective
Credible
Customer Centric
Compelling Value Prop.
Greater InvestorInterest
HigherValuation
Product
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…where investors are just as criticalShifting focus to early stage assets …
Many companies are unprepared to demonstrate their worth in earlier stages of development…
450675
387
421837
1,096
2013 Q1 2014 Q1
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There is a need to demonstrate a product’s value earlier in development
Early Stage
Late Stage
Unit of Measure
Source: PWC Moneytree™ Report; RTA analysis
For our early-stage investments, we don’t just conduct scientific diligence — we also spend a lot of time talking to business development and commercial teams from pharmaceutical companies to ascertain whether a new product will matter to them.
Ed MathersPartner, NEA
…biotech companies we encounter in deal discussions have not spent time thinking about the competitive landscape and are unprepared to differentiate their pipeline products.
Brian Edelman Eli Lilly and Company
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© 2015 Red Team Associates | 10SOURCE: Duct Tape Marketing
A Compelling Valuation Results in Earlier Deals and Higher Valuations
High
Low
Valuation
High
Low
Investor/ LicensorRisk
Building the Commercial Value Proposition(the earlier the better)
Clarity of Compelling Value Proposition
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A compelling value proposition is the foundation for a credible forecast… That is the basis on which investment and licensing occurs
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Key clinical decisions are often made prior to Phase III
Phase III clinical decisions impact the value proposition
Smaller companies rarely have a commercial person as part of their team to help formulate a compelling value proposition
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Over 50% of peak sales forecasts for new products are off by more than 40%
© 2015 Red Team Associates | 12Source: (1) Myoung Cha (McKinsey & Company) et al. 2013, “Pharmaceutical forecasting: throwing darts?" Nature
Reviews Drug Discovery vol. 12. 737-738; (2) RTA analysis
Current forecasting practices2
Overestimates of KOL feedback as a predictor of future success
Underestimating the influence of payers
Overestimate the willingness of physicians to challenge payers
Overestimating the number and speed with which practicing physicians will adopt new products
Overestimating patient influence in driving physician behavior
Inaccuracy is the norm1
Two years pre-launch forecasts are off by an average of 71%
Even 6 years post launch, forecasts are off by an average of 45%
Cardiology and CNS are most frequently overestimated
Oncology is most frequently underestimated
Large life science organizations produce significantly better forecast estimates than small companies
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New Reality: “You Live With What You Launch With”
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New
to b
rand
vol
ume
(NR
x)
Week post launch
New-to-Brand is defined by therapy naïve, switch-to or add-on prescription
~150 US launches (2004 – 2012), patient acquisition uptake inflects on average 14 weeks post launch‒ New indication and data will change
the level of patient acquisition
‒ Marketing events (DTC) can provide a change in patient acquisition
‒ Managed care wins expands the pool of potential patients
Launch inflection at week 14(90% of brands inflect between week 7 and 26)
Launch trajectories in the US
New to Brand Rx change post inflection averages ±25% up to 104 weeks post inflection
10 20 30 40 50
Source: IMS Health. “Launch Excellence study”
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A compelling product value proposition is key to driving product value
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Proof of ConceptApproval
Reimbursement
Utilization
Which patients? Which HCPs? How often? How long?
At what price? Adoption barriers? SG&A? NPV?
Evolving Valuation Concerns
Valuation Drivers
Examples of Compelling Value Proposition Key Elements
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How a Life Sciences Organization Approaches Building a Compelling Value Proposition?
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Three key concepts for creating a great value proposition for our customers
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Commercial development happens in parallel with clinical development
Many features and benefits get locked in early in the development cycle
Aligning the value proposition for a diverse set of customers
Translating data/features into rational and emotional benefits
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Product Development in Biotech – Commercial Development in parallel with Clinical Development
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Product discovery
Late-stage development
Approval
Early-stage development
Guidelines
Uptake
Opportunity Assessment
Access
This Productis ideal to satisfy
my needs!
• Product concept, scientific finding
• Develop plan/decision
• Safety assessment• Phase II design • Proof of concept
• Draft labeling• Label negotiation
• Phase III design• Health economics
• Market opportunity• Product/customer
needs
• Ensure appropriate diagnosis and treatment assessment
• Secure product positioning
• Ensure access
• Access educational needs
• Access market readiness
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This Productis ideal to satisfy
my needs!
Many key value drivers get locked in early!
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Product discovery
Late-stage development
Approval
Early-stage development
Guidelines
Uptake
Opportunity Assessment
Access
• Route of admin• Indications• Toxicology• Pharmacology
• Dosing/Schedule• Safety needs
• Diagnostic St.• Relev. Endpoints• Early Approval
• Label Claims• HECON• Final Package
Value Drivers
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Three key concepts for creating a great value proposition for our customers
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Commercial development happens in parallel with clinical development
Aligning the value proposition for a diverse set of customers
Incorporate understanding all customers and their motivations in development
Translating data/features into rational and emotional benefits
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The unique diverse set of customers in the healthcare field requires a broad understanding of customer needs and drivers
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PatientUser
PhysicianDiagnosis/Treatment decision
Family Employer
Gov’t/Managed CarePayer
CVP
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What is value for our diverse customers?
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Value =
The customer is the final judge of value
Different value types can influence customers
− Absolute value
− Relative value
− Perceived value
Customer definition of value is dynamic and modifiable
BenefitCost/Effort
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Aligning elements of the value proposition to create a simpler message
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Patients:Want to be cured
Want convenienceDon’t want side effects
Care about out of pocket costAre not necessarily compliant
Physicians:Help their patients
Want measurable successRun a businessAim for the cure
Payers:Affordable healthcareFocused on outcome
Lose customer in 2 yearsCan’t lose money
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Three key concepts for creating a great value proposition for our customers
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Commercial development happens in parallel with clinical development
Aligning the value proposition for a diverse set of customers
Translating data/features into rational and emotional benefits
Features don’t matter unless we can articulate their benefit meaningfully
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Break through the perception that often exists among internal stakeholders
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Science view of Commercial• Often don’t understand the
science/technology• Don’t realize how important
this science is• Are willing to “tweak the
data”• Are forecasters• Are all about the money
Commercial Intent• Be the voice of the
customer• Understand market
insights and dynamics• Articulate market tensions• Understand customer
motivations• Affect behavioral changes• Translate features into
benefits
• Educate scientists about intention of commercial thinking and value proposition
• Focus on the customer needs and translate the science into meaningful customer benefits
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Building a Compelling Product Value Proposition
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Reality: Shift Happens!!
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Product Uptake: Where Reality Meets Reimbursement and the New Fin’l Standard
Approval
Reimbursement
Uptake
Time
Rev
enue
Impa
ct
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Affordable Care Act: It’s the Law; It’s Popular; It’s Likely to Stay
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As with any new law, there are good and bad consequences for products mfrs.
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The Good• More people insured• More uninsured treated• Strong Demand for Better Products• Willingness to pay premium for
products that clearly demonstrate value
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As with any new law, there’s good and bad consequences for products mfrs.
The Good• More people insured• More uninsured treated• Strong Demand for Better Products• Willingness to pay premium for
products that clearly demonstrate value
The Bad• Consolidation of Hospitals, Insurers• 50% of Physicians Becoming Employees
and Increasing Economic Buyers Playing Much Larger Role
• Double digit premium increases to employers, consumers
• More consumers in HDHP
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Regulatory Approval and Reimbursement are the Ante, not the Endgame
Rev
enue
Time
Good Label,Good Marketing
Marginal Label,Good Marketing
Marginal Label,Marginal Marketing
Launch
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In today’s world of social media and access to information, Product Awareness Often Precedes Launch
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Example Value Drivers High Freq. of Stimulus Good First impression High Rx Potential Good Experience
Patient Disease awareness Patient group support
Phase 2 & 3 clinical trial results
KOL opinions
Referral to or managed by “Treaters”
Out-of-pocket cost Accepted by insurance
Efficacy Ease of obtaining drugs Drug adherence
Physician Conference Professional orgs.
Clinical trial experience Peer reviews
Awareness Conference On patient formulary
Efficacy Patient satisfaction
Payer Conference Early active discussion
Clinical trial data HEOR data Justified pricing
Contracting options Cost-savings
Cost-effectiveness of product
Stimulus Zero Moment of Truth (ZMOT)
Pre- or post-launch
First Moment of Truth (FMOT)
Second Moment of Truth (SMOT)
Only post-launch
One’s SMOT can become next person’s ZMOT
SOURCE: Based on Google’s New Marketing Strategy; Duct Tape Marketing; RTA analysis
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…Fundamentally Changing Product Development and Marketing
Product Choice
Procedure Volume
Sales Process
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Here’s an Example of How the New World of Healthcare Works
Express Scripts appoints independent physicians to review clinical data and determine the most clinically andcost-effective options within a given therapeutic category
The physician-determined evidence base drives formulary decisions, including who's in this year, and who's out.
The takeaway from Express Scripts' 2016 formulary decisions: "The future is now."
One unexpected byproduct of this is the shifting relationship between pharma and PBMs. There is a reinvigorated relationship between Express Scripts and the pharma companies to agree as to what constitutes meaningful data.
Bio Pharma Dive: Aug 6, 2015
Express Scripts' 2016 formulary: Who's in, who's out, & how did they decide?
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Bottom Line: The US is Looking Increasingly Like the EU
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What is A Value Proposition?
A value proposition is a short statement that clearly communicates the benefits your potential customer(s) gets by using your product, service, or idea
A value proposition is usually developed for each stakeholder based on perceptions of the benefits and costs (including both economic and social risk).
Comprehensive Clear
Convincing
Credible
CreativeCustomer-centric
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The New Commercial Challenge: Is the Value Proposition Sufficiently Compelling?
Your Drug
• Providers increasingly aligned with payers• Big Data = Big Brother• Physician endorsement: harder to get• Analogue ≠ Prologue
• Demand for unique products will likely grow• Different product categories will face different
challenges• New approaches and business models required
to succeed
Your Company
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The goal is to make the value proposition succinct, clear, and supported
Five proven value propositions:
► more for more
► more for the same
► the same for less
► less for much less
► less for less
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Creating a Compelling Value Proposition is a Four Part Process
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Understand the Value Stream
Start Early Know Your Customers
Assess & Align Your Product Objectively
1 2 3 4
Target Product Profile
Compelling Value Proposition
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Understand the Value Stream --- Know How Your Product Creates Value
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Clinical Trial Design
FDA Approval
Yes NO
To:
NO
Yes NO
Your New Product
Will the Patient Pay Their Share?
Does the plan support / reimburse use?
Is the patient willing to pay O-O-P
Yes NO
Does the physician support use?
Customer Input
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The Patient Flow Experience is the Fulcrum for the Value Stream
Commercial Goals
Undiagnosed (1.85MM)
Naïve (390K) Currently Ineligible
(51%)
Naïve (390K) Treatment Ready (13%) Actively Waiting (5%)
Previously Treated (260K) NR/Relapsers Motivated
(35%)
Drive To Test
DiagnosisPCPNo Screen
Screen
Hold
Never Treat
Treat/Re-Treat
Decision
TVR
BVR
Obtain Tx
No Tx
Complete Tx
Discontinue Tx
Cure
SOC
Refer
Hold
Treater
Not Cure
Patient Journey
Population Targets Patient Journey
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Start Early---A Compelling Value Proposition is Built Well Before Launch
© 2015 Red Team Associates | 42
Key clinical decisions are often made prior to Phase III Phase III clinical decisions impact the value proposition Smaller companies rarely have a commercial person as part of their team to help formulate a
compelling value proposition
Product Development
Ph. I Ph. II Ph. III NDA filing
High
Low Illustrative
Expenditures
High
Low
Clinical decision flexibility
Decisions made early drive future market share
Building the Commercial Value Proposition(the earlier the better)
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Physicians are Balancing Many Things---Over 50% Are Employees and the Number is Growing
Desire to Serve
Patients
Income Pressure
Your Product
PlanDemands
© 2015 Red Team Associates | 43
PHYSICIANS
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KOL’s Increasingly Do Not Represent the Mainstream Physician
SeverityOf Patients
L
# of relevant Patients
Specialist
Few Many
H
KOL
The Physician Treatment Landscape
Primary Care
© 2015 Red Team Associates | 44
PHYSICIANS
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The Adoption Process for New Products Reflects These Differences
SOURCE: Crossing the Chasm, Geoffrey Moore, 1991 © 2015 Red Team Associates | 45
PHYSICIANS
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What Physicians Want Now: Efficacy, Risk, and Reward Commensurate with the Condition
Drivers vs Deterrents of Product Use
Rev
enue
Your New
Product
Drivers• Solid clinical data• Improves QALY• Reduces signs & symptoms• Easier to use• Faster to use• Easy to communicate• Easily reimbursed• Positive impact on income• Positive patient feedback
Deterrents• No Cost-Benefit analysis• Potential safety concerns• Non-reversible side effects• Lack of quality clinical data• Poor product availability• Reimbursement issues• More complex or difficult to use• Takes longer to use• Difficult to communicate• Negative impact
on income
“One ‘oh_________!’ wipes out a thousand positive experiences!”
© 2015 Red Team Associates | 46
PHYSICIANS
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The Perspective of the Payer
Goal: manage costs and returns without compromising patient outcomes
Facing increasing pressure to control costs
Greater investment in systems and infrastructure provides greater insight into what is working – and a greater ability to influence physician behavior
Continue to offload expense and risk onto the consumer to reduce premiums, control utilization, and manage cost
© 2015 Red Team Associates | 47
PAYERS
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Payers Decide the Level of Access for Products
Key Questions
How significant an improvement relative to current therapies?
How important is that improvement?
How clearly has that improvement been documented?
Is there an economic benefit? To who? When?
What is the probability that the economic benefit will be realized?
How many people are affected by the disease or condition?
What will be the incremental cost to the plan?
Key Decisions
Will the Product be on the Formulary?
What type of co-pay or OOP should be collected?
Is there risk to be shared with the Hospital or Physician?
What Level of Access will be allowed?
Will Prior Authorization be required?
For what period of time will the product be on the Formulary?
No Access UnrestrictedAccess
New Product
Payer and Majority Physician
perspective
Marketer andKOL
perspective
© 2015 Red Team Associates | 48
PAYERS
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Moving Forward: Expect Physician Incentives to Follow Care Pathways
2/3 of hospitals expect Physicians to be financially incented to follow care pathways
“Physicians who ‘get it’…will typically make more…than the ones who don’t”
PBM Manager of Credentialing and Contracting
© 2015 Red Team Associates | 49
PAYERS
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Conclusion: “He Who Has the Gold Makes the Rules”
© 2015 Red Team Associates | 50
PAYERS
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As more Healthcare Costs are passed to Consumers, more Care will be Deferred
SOURCE: WSJ, Dec 3, 2014
Doyle Lewis and his son Ryan of Minneapolis. The family has held off medical spending because of their high deductible health insurance plan.
© 2015 Red Team Associates | 51
PATIENTS
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Insurers Win Big Health Rate IncreasesSome state regulators say new costs justify hefty increases under the Affordable Care Act
WSJ, 8-27-2015
PATIENTS
© 2015 Red Team Associates | 52
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Is Healthcare Becoming a Luxury Good?
“Bronze-level” plans have an average deductible of $5,181 for individuals, up from $5,081 in 2014 (report from Health Pocket)
Bronze plans generally cover 60% of consumers’ medical expenses; silver plans cover 70%
One in three Americans said they or a family member delayed medical care because of costs in 2014, according to a report last month by survey company Gallup. That is the highest percentage since Gallup began asking the question in 2001.
Since 2009, the average deductible for workers who get employer health coverage has shot up 47% to $1,217 from $826, according to a September survey by the Kaiser Family Foundation and the Health Research & Educational Trust WSJ, Dec 3, 2014
.
Patients
© 2015 Red Team Associates | 53
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What Matters to Patients is Living Longer; Better QOL
Market Maturity
Secondary Value Drivers(Improved QoL, Physician Recommendation, Co-Pay…)
PatientValueDrivers
Primary Value Drivers (Including Safety, Dosing,Symptom Relief,Life Extending,…)
Patients
© 2015 Red Team Associates | 54
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Conclusion: The Healthcare System is interconnected —understanding these is key to being successful in the future
Pharma
Physician
HospitalEmployer
Patient
Plan
InvestorsInvestors Investors
Investors FamilyFamily
© 2015 Red Team Associates | 55
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Value Proposition Worksheet for Assessing Your New Product
For …
…who…
..this product is …
…that
Unlike…
…the current drug
…because of
Customers
Positioning
Target customer
State of need or opportunity
Product/service category
Statement of benefit
Primary competitive alternative
State of primary differentiator
Proof that benefits can be delivered
© 2015 Red Team Associates | 56
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Product Utilization Threshold: Assess Whether Your Product Will Be Used and How Quickly
Adoption Drivers Physician Managed Care Patient/Caregiver Overall
Relative Advantages ++ ++ ++ ++
Relative Communicability ++ ++ ++ ++
Relative Compatibility (-) 0 + 0
Relative Length of Time (--) 0 0 (-)
Relative Tryability 0 0 + (+)
Relative Intial Cost (--) (--) (-) (--)
Relative Ongoing Cost (--) (--) (-) (--)
Relative Financial Impact 0 (--) N.M. (-)
Overall Assessment(--) (--) ++ (- / --)
Scale: ++ Much Better Than; + Somewhat Better Than; 0 Equal; (-) Somewhat Worse Than; (--) Significantly Worse Than
© 2015 Red Team Associates | 57
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In Conclusion: A Compelling Value Proposition needs to be at the Center of Product Development and Marketing
SOURCE: Red Team Associates analysis
CVP
ClinicalTrials
Demonstrate
Deliver
Diagnose
© 2015 Red Team Associates | 58
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Financial Expectations, Positioning, and Rate of Adoption are Driven by Advantages and Degree of Behavior Change Required
SOURCE: Red Team Associates
Disrupt Differentiate
Discount
ProductAdvantages
Required Behavior Change
Strategy Map: The More Behavior Change the Slower the Adoption
High
LowLowHigh
Don’t
© 2015 Red Team Associates | 59
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Two Examples
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↓ Postprandial Blood Glucose
Long-Term Glucose Control
% Pat. to HbA1c Goals
Ability to Halt Disease Prog.
Relative Importance
Reduce risk of CV Events
Cardio-protective Effects
Lowering HbA1c Blood Levels
Effect on Mortality
Treatment Benefits
137
163
164
170
173
183
212
231
`
Treatment Benefits Relative Importance
Diabet. Related Vision Problems
Concern that Diabet. Getting Worse
Lowering HbA1c Levels
Likelihood of Having a Heart Attack
Diet Restrictions
Diabetic-Related Problems
Impact On Sex Life
Weight Change
190
166
165147
141
138134
127
Physicians and Patients View Type 2 Diabetes Differently
--- Hence What They Want in a Drug Differs
Physicians Patients
Source: Red Team Analysis
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To Patients: Co-Payments Really Matter
Even in Symptomatic, Potentially Life Threatening Conditions Like Type 2 Diabetes
Weight Change
Diabetic-Related Problems
Likelihd of Having a Heart Attack
Concern Diabet. Getting Worse
Relative Importance To Patients
Impact On Sex Life
Diet Restrictions
HbA1c Levels
Diabet. Related Vision Problems
Treatment Benefit
190
166
165
147
141
138
134
127
Co-Pay Level
Diab. Related Vision Problems
Concern Diabet. Getting Worse
HbA1c Levels
Likelihd of Having Heart Attack
Diet Restrictions
Impact On Sex Life
Diabetic-Related Problems
Weight Change 130
130135
141
157160
184
277
155
Relative ImportanceTo Patients
Treatment Benefit
Benefit Importance w.o Co-Payment Benefit Importance w. Co-Payment
Source: Red Team Analysis
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In AFIB: Patients Want to Live Long and Live Well
Heartbeat Skipping
Relative Importance to AFIB Patients
0 20 40 60 80 100 120 140 160 180 200
Ability to do Everyday Tasks
Reduced Pain
Reduced Anxiety
Shortness of Breath
Irregular Heartbeat
Lack of energy
Heart Pounding
~~
Source: Red Team Analysis
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Willingness of AFIB Patients to Pay $40 O-O-P
Relative Willingness of Patients to Pay $40
~~
Heartbeat Skipping
Drug Delivery
QD Dosing
Irregular Heartbeat
Lack of energy
Heart Pounding
$10 $20 $30 $40 $50 $60 $70 $80 $90
Lack of energy
Out of Pocket Costs
Reduced Anxiety
Willingness to Pay
Source: Red Team Analysis
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Greater Requirements to Get Patients to Pay $65 O-O-P
Relative Willingness of Patients to Pay $65
~~
Heartbeat Skipping
Drug Delivery
QD Dosing
Irregular Heartbeat
Lack of energy
Heart Pounding
$10 $20 $30 $40 $50 $60 $70 $80 $90
Lack of energy
Out of Pocket Costs
Reduced Anxiety
Willingness to Pay
Source: Red Team Analysis
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Specific Endpoints Required…
Relative Willingness of Patients to Pay $65
~~
Heartbeat Skipping
Drug Delivery
QD Dosing
Irregular Heartbeat
Lack of energy
Heart Pounding
$10 $20 $30 $40 $50 $60 $70 $80 $90
Lack of energy
Out of Pocket Costs
Reduced Anxiety
Willingness to Pay
QD Q. Weekly Q. Monthly
QD Q Weekly Q Monthly
Source: Red Team Analysis
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• The Deck is Being Stacked Against Non-Disruptive Products !
• Payer Consolidation; Physician Practices; Hospitals!
• Endpoints Drive Endgame!
• Customer Input is Critical ----- Early!
• There are No Do-Over’s Post Launch!
Summary: To Drive Product Uptake---- Endpoints Drive Endgame, and Building a Compelling Value Proposition Early is Critical
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“The consumer isn’t a moron, they’re your wife, your parents, your children, your siblings..” David Ogilvie
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Putting it all together: two out of three does not cut it!
© 2015 Red Team Associates | 69
• Premium Pricing• High interest/awareness/trial• Potential brand loyalty
Resonate Differentiate Substantiate
“I want”
“I need”
“Best option” Great clinicals
Minimal AE’s
Weak Resonance
Difficult to Substitute
Able to Substantiate
Strong Resonance
Able to Substantiate
Easy to Substitute
Not able to Substantiate
Difficult to Substitute
Strong Resonance
Components
Of Strong Value
Propositions
CVP is Foundation For…
Take One
Away
“ I don’t need this right now”
“My next patient with these symptoms, I’ll try it”
“What’s your best price?”
“How does this differ from the product from Company X?”
“This clinical data is vs placebo”
There’s no proof that this therapy delivers superior outcomes”
What Customers Say
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Don’t forget the softer side of marketing your new asset --- it can be a key component of creating compelling value
© 2015 Red Team Associates | 70
New Asset
Service
CustomerSupport
Modes of Purchasing
Education and
Training
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A CVP needs to be relevant, believable, and unique to your customers…while facilitating action
In conclusion
Relevant to all customers‒ Physicians‒ Payers‒ Patients‒ Others (caregivers, employers, etc.)
Believable‒ Clinical data‒ HEOR‒ PRO
Uniquely positions the product‒ vs. Future Competition‒ vs. Future Standard of Care
Strong Call to Action‒ Patient to physician‒ Pen to Prescription ‒ Prescription to Fill‒ Adherence to Renewal
© 2015 Red Team Associates | 71
CallTo Action
PRODUCT
Relevant Believable Unique
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Building a Compelling Value Proposition
Harris Kaplan Managing Partner, Red Team Associates
[email protected] (410) 215 9595
John Farah, PhD
Managing Director, Red Team Associates
[email protected] (215) 805 5630