What: "New Commercial Model: Science or Swag?"
Who: W. Scott Evangelista, principal, Deloitte Consulting LLP
When: Available immediately
Where: www.deloitte.com/us/debates/scienceorswag
Details: Pharmaceutical companies face a fundamental decision about the best way to sell their products. Even if they could find a way to make the current sales model work, pharma companies still face sky-high commercial costs. So, the question is, should pharma companies stick with their traditional sales approach or blow it up and try something new?
"Pharmaceutical companies don't necessarily need to blow up their sales forces; however, they have no choice but to fundamentally change how they sell their products," explains Evangelista. "With billions of dollars (and a better delivery model for stakeholders) hanging in the balance, pharma companies can't afford to wait to make these critical changes."
Evangelista offers the following as key focus areas companies should consider in re-evaluating their model:
Incorporate consideration for commercial implications early in product development. Collaborate early with payers and other key stakeholders to design studies and develop products, and then keep them involved throughout the product lifecycle. Enhance portfolio management to help assess the commercial viability of molecules in the pipeline and go/no-go decisions for moving forward.
Use advanced analytics to optimize investments. Build superior data management and analytical capabilities to improve resource allocation and return on investment (ROI). These advanced capabilities can be applied in a variety of ways, such as: enabling companies to better understand and optimize their marketing mix; extending physician targeting beyond top decile prescribers by incorporating other factors such as marketing mix, payer position and physician behavioral profiles; and reducing resources allocated to direct-to-physician sales and increasing the focus on non-personal promotion and new channels to boost ROI.