Competing in a Retail Health Consumer Marketplace
A new Booz Allen survey shows that as more consumers take on much bigger shares of the health costs, they've started to focus on price, including the price of drugs--often rejecting their doctors' recommendations. To counteract even greater price pressures, drug firms need to provide physicians a different set of information and services, designed to meet the new demands of these new cost-conscious patients.
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Consumer-directed health plans have been less a boon for the drug industry than pharma executives expected because consumers, responsible for more of their own costs, are buying generics when they can and skimping on therapeutic regimens. Drug companies will have no choice but to reduce prices to patients in these plans--but should provide the discounts in return for greater adherence, which could to a large degree offset the revenue losses.
Traditional databases marketed by IMS and NDCHealth are not patient-centric and therefore can only describe what happens to a prescription, not a patient. But managed care, driven by the Medicare Modernization Act, will force drug companies to focus on a new view of customers-and in particular, keeping them longer. But drug companies aren't by and large using the new patient-centric data available in a variety of forms from a variety of vendors. The problem is as much habit as awareness.
The company cited lackluster efficacy in its decision to discontinue development of V590 and V591. It will instead develop two drugs to treat COVID-19.