When Was the Last Time You Evaluated Your Pharma Managed Markets Value Proposition?
Brand, payer marketing, market access, and managed markets teams: As you know, the US Department of Health and Human Services (HHS) unexpectedly withdrew its plans to reform drug pricing with a change to the Part D Rebate Safe Harbor protection paid under Medicare and Medicaid programs. Some concerns stemmed from the complexity of the change and whether it would really lower drug prices. There were also concerns of political risks of potential premium increases to seniors.
While the proposal did not materialize, it underscores the constant reality of change in today’s marketplace resulting from:
- An influx of drug pricing policy proposals, such as the Prescription Drug Pricing Reduction Act (PDPRA) of 2019
- Drug innovation, product launches, growing therapeutic density, and new competition
- Stronger payer and hospital system formulary requirements, including comparative effectiveness research (CER) evaluations
The impact of these dynamics associated with changes in drug payment, reimbursement, new competition, and formulary access requirements has narrowed the window whereby brand value propositions remain relevant and differentiated.
When was the last time you reviewed your brand’s value proposition to ensure it is still powerfully relevant and continues to clearly resonate with your target customers in today’s dynamic marketplace?
Create the promise of value and prove it
Your brand’s value proposition demonstrates differentiators from your customers’ perspectives that make your product superior to its competitors. This value becomes the foundation for clear, concise, and compelling brand messaging. Brand value must be substantiated with credible supporting evidence that can withstand advanced formulary evaluations, guideline recommendations, and emerging technology assessment criteria. This creates the opportunity for brand inclusion on limited formularies and the opportunity to propel your brand throughout its life cycle.
5 key elements of an impactful value proposition include its ability to:
- Reflect customer priorities
- Distinguish brand differentiators vs the competition
Recognize access value drivers for formulary coverage
Provide strong proof of the value
Be meaningful, credible, and sustainable
Introducing Aventria® Health Group’s Promise-to-Performance Model™ for impactful value propositions in a post-rebate world. Our proprietary process efficiently evaluates your current value proposition and, if necessary, provides a framework and platform to modernize it to meet the requirements of the new market environment.
Brand value proposition considerations:
- Have you clearly defined your target customers?
- What are their evolving value drivers and what do they value most?
- Do you have a clear strategy to address the new value drivers? If so, how is it different from the competition?
- What is the central promise your brand will deliver to your target customers and their members/patients?
- What are your high-level message pillars based on the most differentiating reasons to believe your central promise (supporting data)?
Why work with Aventria Health Group?
Aventria Health Group’s strength is our understanding of payer/channel dynamics and drug payment methodologies for both specialty and next-generation primary care pharmaceuticals. We are confident we can enhance your brand using our expertise in creating strategies, identifying competitive differentiators, and designing “winning” brand value propositions.
To learn more about Aventria Health Group’s Promise-to-Performance Model™ and for a free 1-hour initial consultation to better understand your brand strategy to drive performance in today’s dynamic environment, please contact Dave Dierk at 215-489-9000 x103 or firstname.lastname@example.org, or Paul G. Pochtar, RPh, at 215-489-9000 x100 or email@example.com.
Making a difference in patient care by helping patients, providers, and payers collaborate on shared priorities
The views and opinions expressed are those of the author and do not imply endorsement by Aventria Health Group.