model n 2013 annual global price management survey - life sciences
TRANSCRIPT
©2013 Model N, Inc. PROPRIETARY & CONFIDENTIAL
2013 Annual Survey – Global Pricing in Life SciencesIndustry Benchmark Report
©2013 Model N, Inc. PROPRIETARY & CONFIDENTIAL | www.modeln.com/rainmaker©2013 Model N, Inc. PROPRIETARY & CONFIDENTIAL2
First Annual Global Pricing SurveyEXECUTIVE SUMMARY
• In general Global Pricing teams are able to work with the governance and processes they have in place, however there are significant areas of improvement when it comes to operationalizing these processes
• Companies are equipped with systems and tools allowing “blocking and tackling” activities of Global Pricing, but are underequipped when it comes to collaborating well and making fast data-driven decisions based on advanced analytics
• Many respondents report a lack of automation, ease-of-use, maintainability– Legacy home-grown applications are common place, and more than 1/3
of companies use Excel for Data Management, Reporting and Analytics
• More than 50% of the companies plan to invest in order to fix systems that hamper good decision-making
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First Annual Global Pricing SurveyTo Understand How to Best Fulfill Industry Needs
12
10
6
7
Russia
Denmark
Italy
Belgium
France
Switzerland
Germany
United Kingdom
United States
Survey Objectives• Better understand industry needs
and priorities• Continuously improve software and
services• Share a benchmark with the pricing
community
44 global respondents
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First Annual Global Pricing SurveyDemographics Match Desired Industry Representation
Series1
Local affiliate RegionGlobal HQ
Series1
<500M 500M - 1B1B - 10B >10B
Alcon Institute StraumannAlexion InterMuneAmgen LEO PharmaAstraZeneca MedtronicBasilea MenariniBiogen Idec Merck KGaABioMarin Merck MilliporeBMS NovartisBoehringer Ingelheim PfizerCovidien Regeneron Eisai RocheEli Lilly Sandoz Ferring The Medicines CompanyGrunenthal Threshold PharmaGSK UCBDouble Helix Kantar HealthKamedis Conseils Market Access Solutions
PwC
35 individual companies represented Respondent distribution(vendors excluded)
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Global Pricing Today
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Top of mind Global Pricing challengesTeam Bandwidth, Tenders, LoE are most experienced challenges
Lost price due to inaccurate/ out-of-date data
Inaccurate or late price reporting to MoHs
Lost price due to lack of IRP anticipation
Lost price due to inadequate launch sequence
Lost price due to lack of global collaboration
Parallel trade as a result of wide price corridors
Lost too much price at loss of exclusivity
Lost price due to tenders coupled with IRP
Struggled with too many price change requests
0 0.1 0.2 0.3 0.4 0.5
<500M500M - 1B1B - 10B>10B
Q: Among some of the Global Pricing challenges below, which 3 have you most experienced recently?
40%20%
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Industry Practices Today - GLOBAL PRICING REPOSITORY Gaps in the areas of Integration, Collaboration, Basic Reporting
Integrates all necessary data sources
Collaborative calendar of events
Audit trail
Easy reporting/ dashboards
Enables notifications, approvals
User-friendly and admin-friendly
Fast access worldwide
Single global pricing database
Have and satisfactory Have but not satisfactory Do not have
Q: How would you describe your current GLOBAL PRICING REPOSITORY across the below components and characteristics?
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Industry Practices Today - GLOBAL PRICING PROCESS & ORG.Domains with most satisfaction today
Data ownership & update process
Role-based user rights and responsibilities
Launch sequencing process
Price change process
Governance
Have and satisfactory Have but not satisfactory Do not have
Q: How would you describe your current GLOBAL PRICING PROCESS & ORGANIZATION across the below components and characteristics?
Process OK, hence slide 5 suggests issues in price
change process operations
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Industry Practices Today - INTERNATIONAL REFERENCE PRICING Many gaps, especially in Scalability, Automation, Launch Sequence
Easy to add functions, pages, workflows
I/O integration with other systems
Launch sequencing optimization algorithm
Easy scenario visualization/ comparison
Easy-to-use interface
Price change impact analytics
Flexible and detailed reference rules
Have and satisfactory Have but not satisfactory Do not have
Q: How would you describe your current INTERNATIONAL REFERENCE PRICING tool across the below components and characteristics?
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Industry Practices Today – Global Pricing System LandscapeIndustry still relies heavily on Excel! Less than 25% vendor systems
Q: Which types of software solutions are in use in your organization in the following categories?
Scenario analytics & Optimization
Reporting
Global collaboration and processes
Reference rules and price events
Database of global prices
0 10 20 30 40 50 60 70
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Global Pricing Tomorrow
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Areas for improvementHigh need for improvement esp. on collaboration and analytics
Very important, current setup is inappropriate/ incomplete
Important, current setup hampers making good deci-sion
Quite important, we have key areas of improvement
Not too important, setup is fine most of the time
Not important, current setup is what we need
Q: Overall, how important is it for your team/ organization to improve on the following…
123 4
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Global Pricing ServicesHelp needed to complement skill set, bandwidth and system
Other
IRP rules 'as a service': Initialization & re-curring updates
Product-specific strategies to best work with/around International Pricing rules
Validation of accurate application of IRP rules in country affiliates
Assess and design Global Pricing system and organization strategy
International Reference Pricing (IRP) industry benchmarking
IRP scenario analytics (price change, launch sequence, genericization, etc)
Q: Which third party consulting services do you think your organization could need?
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Take-AwaysInvestment needs to tie back to identified gaps and most value add
• 40+% have areas for improvement hampering good business practice in Pricing Collaboration
• 50+% have areas for improvement hampering good business practice in Price Simulation
• Improving capabilities in ‘13/’14 is medium or high priority for 55%
Price change process
Price & launch simulation
Price events database
Reporting & dashboards
Reference rules management
Local/ global collaboration
Global pricing database
Competitive price database
0%20%
40%60%
80%100%
Yes Considering No
Investment areas in next 24 months
Where will you invest in the next 24 months?
©2013 Model N, Inc. PROPRIETARY & CONFIDENTIAL
Arnaud Grunwald
Senior Director Global Pricing Strategic Initiative
+ 1 650.610.4656
Contact Information:
©2013 Model N, Inc. PROPRIETARY & CONFIDENTIAL
2014 Annual Survey – Global Pricing in Life SciencesIndustry Benchmark Report
Coming soon ..
©2013 Model N, Inc. PROPRIETARY & CONFIDENTIAL
How Model N solution helps
COLLABORATION
PRICE REQUESTS
WHAT-IF PRICE SCENARIOS
SCALABILITY / FLEXIBILITY
INTEGRATING DATA SOURCES
©2013 Model N, Inc. PROPRIETARY & CONFIDENTIAL18
Thank you!Any question?
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