RESEARCH TRIANGLE PARK, N.C.--()--Two-thirds of Top 20 and Top 50 companies allocate a dedicated budget to their managed markets teams, while at least half of small pharma and device companies do the same, according to a study by Cutting Edge Information.
“US Managed Markets: Driving Commercial Success through Outcomes-Based Reimbursement”
Top 20 companies’ US managed markets teams receive funding from a greater number of sources than do smaller teams. Cutting Edge Information’s research suggests that Top 20 companies must prove return on investment (ROI) on a stricter scale than their smaller counterparts, requiring them to augment their budget with funding from numerous teams.
Cutting Edge Information’s study, “US Managed Markets: Driving Commercial Success through Outcomes-Based Reimbursement,” found that brand teams and therapeutic areas contribute to a high percentage of managed markets teams’ activities, reflecting managed markets teams’ commonly decentralized structure, as well as the shift toward unifying marketing and managed markets messages.
A dedicated managed markets budget covers department wide expenses including salaries, travel expenses and maintenance. Separate budgets are then carved into therapeutic area projects. For these allocations, each therapeutic team lists its yearly objectives for each of its products. Final funding approval for those activities often comes from the brand teams themselves, which control all therapeutic area-based market access spending.
“Each company’s funding formula is different,” said Michelle Vitko, senior research analyst at Cutting Edge Information. “Some managed markets teams rely solely on market access — sometimes including health economics and outcomes research — for its operating budget. Others receive all funding from the brand teams. Still others receive funding from a variety of sources. In general, however, most managed markets teams receive funding from only one or two other functions.”
“US Managed Markets: Driving Commercial Success through Outcomes-Based Reimbursement” (http://www.cuttingedgeinfo.com/research/market-access/strengthen-payer-relationships/) provides best practices and benchmarks to enable managed markets teams to perform in the current US reimbursement environment. The study helps companies:
- Manage pricing pressures and the narrowing gap between US and European reimbursement policies.
- Position and prepare account managers to meet with influential payers.
- Compare different industry takes on the US reimbursement landscape.
For more information about managed markets and market access benchmarking, contact Cassie Demeter at 919-403-6583.