demonstrating value to purchasers

www.valueconnected.com • contact@valueconnected.com • Tel. +31 70 250 0078 • WTC The Hague, Prinses Margrietplantsoen 33, 2595 AM The Hague, The Netherlands

ROADMAP TO MARKET ACCESSDemonstrating value to purchasers

3rd Annual Medical Device Access Leaders ForumBerlin, Germany – 9th December, 2014

Ernesto M. NogueiraManaging Director, ValueConnected

Medical technology is the number oneinnovative industry in Europe

18 to 24 months innovation cycle

One new patent every 50 minutes

RESOURCEALLOCATION

DILEMMA.

Some facts:

A FEW YEARS AGO

Demands have increased significantly

AVAILABLE TIME TO RESPOND TO MARKET

MARKET DEMAND FOR EVIDENCE

ANNUAL GROWTH OF MEDTECH EUROPEAN SALES

2000-2010 2010-2020 Source: BCG, 2013

While growth has decreased

Decisions come from two different groups:

More professional – consolidation into groups

PURCHASING1.

Higher demand for clinical and economic evidence

REIMBURSEMENT2.

Options for establishing prices:

Immediate positive impact on revenues

Medium and long-term issues

• Pressure for further price cuts

• Weak differentiation point

• Quality of service

LOWER PRICES.01

Results may not be immediate

Medium and long-term opportunities

• Educate and develop market

• Build trust

• Unique market position

DEMONSTRATE VALUE.02

Â DOES NOT CREATE VALUE. Ã JUSTIFIES PRICE.

So what exactly is value?

01 Perception coming from the market

02 Benefits to different stakeholders

03 Comparable to alternatives

04 Measurable/quantifiable

05 Combines relevant clinical & economic aspects

Features vs Benefits

“Our new device comes in 5 different sizes that

are all easy to use”

THIS IS A FEATURE,NOT A BENEFIT.

Value Value is the perception of market decision-makers about the clinical and economic benefits of your product.

How important is value for Purchasers?

“Value-based healthcare stood out as the top priority across all segments of respondents.”

Source: BCG 2013 survey

Every month, thousands of medical products are launched on the market, yet only a fraction will demonstrate enough value to achieve market adoption.

Our job is to make sure yours is one of them.

Welcome to ValueConnected.

Demonstrating value to purchasers

INTRODUCING AN INNOVATIVE TREATMENT.

Case Example:

One of the largest European markets had patient monitoring as the standard care pathway for a certain disease

Health Technology Assessment (HTA) agencies had givenpositive appraisal for the new technology

About 12% of patients would develop serious complications,including neoplasia, thus leading to expensive treatments

However, local purchasers only focused on the upfront costs and did not understand the value of the innovation

“More expensive than standard treatment”

HOW MUCH DOES IT REDUCE COMPLICATIONS?

WHAT IS THE IMPACT ON REDUCED HOSPITALIZATIONS?

HOW CAN WE JUSTIFY THE UPFRONT INVESTMENT?

WHAT IS THE EXPECTED IMPACT ON COSTS AND BUDGET?

Facing initial market barriers

Step 1:IDENTIFY DECISION MAKERS AND THEIR PROBLEMS.

CLINICAL GROUPS:Responsible for prescribing the treatment

Believed in the technology and could not justify its economic benefits!

PURCHASING DEPARTMENTS:Responsible for the final purchasing negotiation and decision

Uncertain about the budget impact from the acquisition of the technology!

WHICH EVIDENCEADDRESSES THE

PROBLEMS?

WHAT COST DATAIS NEEDED?

WHAT ARE THEEVIDENCE GAPS?

Step 2:

REVIEW EVIDENCE AND COLLECT DATA.

Step 3:

BUILD AND COMMUNICATE THE VALUE MESSAGES.

Reduced hospitalization days based on patient profilesÃ

Overall economic result and break-even analysisÃ

Prepare commercial teams to deliver value

messages.

Step 3:

And go from product supplier to business partner.

Step 3:

Partner

• Better understanding of real results as compared to the clinical evidence• Stronger arguments to request the technology

CLINICAL GROUPS.

• Detailed economic assessment of the new technology• “You are doing our jobs for us”

PURCHASING DEPARTMENTS.

Main results:

• Prepare teams to approach non-clinical decision makers• Increased sales

COMPANY.

Value justifies the price of medical technologies in the current cost-cutting environment

The ability to communicate value is as important as the skills to generate the value message

Before demonstrating value, companies must focus on the decision-makers and identify their problems

Value-based strategies are more than only tools, they impact business models and selling approaches

Key take-aways:

Ernesto M. NogueiraManaging Director

Office: +31 70 250 0078Mobile: +31 6 468 92 568Email: enogueira@valueconnected.comWeb: www.valueconnected.com

t @ernestonogueira

in/ernestonogueira

Thank You.

demonstrating value to purchasers

Business

demonstrating the value of it to business

demonstrating impact and value

demonstrating value through citation analysis

101 - adding value: strategic planning and … - adding...

adding value through marketing stuart lewis –...

demonstrating value with evidence

idc whitepaper demonstrating business value

demonstrating value of it.pdf

demonstrating value with bmc server automation (bladelogic)

summer school - demonstrating cloud value

demonstrating the value of local exchanges

demonstrating the value of training - cedma europe...

more than a meal demonstrating value- n4a 072317€¦ ·...

determining & demonstrating value with the logic model

demonstrating the value of university of illinois … the...

demonstrating the value of csr metrics, costs, and benefits...

demonstrating value for money in a dlo

demonstrating the value of community services

demonstrating value through learning analytics

informa - demonstrating your parp inhibitors value