The Changing Life Sciences Value Chain

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Recent Blog Entries

  • New Faces, Changing Landscape - The Life Sciences...1100%
    Entry posted Aug 31 by Dr. Alan S. Louie , tagged Asia Pacific, Best Practices, Channel Management, Clinical Trial Management, Drug Development, EClinical, EMEA, North America, Pharmacovigilence

    In a recent short report, I highlight the entry of the pharmacy benefits manager (PBM), Medco Health Solutions, into the life science ecosystem with their acquisition of United BioSource Corporation.  Just a few years ago, this acquisition would have passed with little interest, with most people not knowing who either of these companies are and wondering why the announcement was made with a focus on the life sciences.  Times are changing, however, and the relevance of the announcement heralds a changing life science ecosystem.  United BioSource Corporation is a leading health economics and outcomes research (HEOR) vendor in a world that is increasingly requiring justification for the reimbursement of increasingly high priced new drugs.  As part of its role as PBM, Medco Health Solutions works on behalf of healthcare payers as an intermediary to distribute pharmacy benefits.  With multiple healthcare payers under its umbrella on one hand and a large network of contracted pharmacies on the other hand, PBMs negotiate the best volume buying on drugs.  This first step at drug price negotiation may be of initial interest to pharma companies, but with no direct product competition, isn't yet a game changer.  As part of their benefits delivery effort, they also monitor prescription utilization (i.e. "scrips").  This scrips data is seeing increasing interest in the shadow of Vioxx, with the government's Sentinel program hoping to uncover drug safety issues more quickly and effectively.  Combining HEOR insights with early insights into potential drug safety issues is part of the new landscape that life science companies will need to embrace if they are to operate effectively in the future.

  • Serialization and Drug Pedigrees: Staying The Course1100%
    Entry posted Aug 24 by Eric Newmark , tagged RFID, Supply Chain Management

    There’s no denying that supply chain security and safety has had a major impact on the pharmaceutical industry over the last decade. Increasing counterfeit activity has placed significant pressure to increase supply chain visibility on an industry that has historically had no true knowledge of the route a product travels from manufacturing to the consumer. Just over the last few months there have been multiple stories around the country of pharmaceutical warehouses broken into and tractor trailers full of pharmaceuticals being stolen, with drugs vanishing worth hundreds of millions. Instances like these are all too common these days. While there have been small periods of time throughout the last decade were urgency to track and trace product has seemed imminent, continued delays in regulation to enforce this process have caused most momentum to be short lived and eventually stammer.

  • The Inelasticity of Reality in the Life Sciences: Cost and...1
    Entry posted Aug 17 by Dr. Alan S. Louie , tagged Ambulatory Care, Asia Pacific, Best Practices, Care Management, Consumerism, Drug Development, EMEA, Genomics, Health 2.0, North America, Pharmacovigilence, Public Policy and Government Health Programs

    We all want free and safe new medical treatments and cures today. Despite this desires and the habit of politicians to pander to their constituencies, the realities of the cost and time required to bring new treatments to market remain unmoved.  It continues to cost a billion dollars and a decade to bring new drugs to market, a reality that is unlikely to change over the foreseeable future.  Technology takes time to deliver on its promise and wishes for faster progress ignore the reality of high safety thresholds, development times, and the threat of lawsuits from failures arising from any perceived shortcuts to the detailed process.  Recent irrational rants include, "Why haven't embryonic stem cells delivered on their promise?", "how is it acceptable to limit formulary access to new drugs?", and "why haven't advances in the human genome project translated into cures?"  The answer is the reality of time and money.  Despite the spin, it is not possible to reduce the cost of development by proclaiming otherwise (in the absence of changing the rules of development) and shortening the time needed to properly advance efforts (in the absence of reduced drug safety or legal liability).  One presumes that consumers are either naïve or ignorant in believing political spin, but we can only hope otherwise for society's sake.  This political and otherwise tabloid noise does have real impact on potential progress by diverting resources from making progress to defending the obvious.  In the shadow of limited healthcare budgets and few easy new drug development wins, a clash is going to be inevitable.

  • Customer References: A Sound Investment Decision
    Entry posted Aug 9 by Eric Newmark , tagged Best Practices, IT Outsourcing

    Over the last several months we have been conducting research in support of our two IT Outsourcing Buyer's Guides (one focused on manufacturing & supply chain, the other on sales & marketing). The first report has now been published and the second is currently being authored and will be published in early September.  As I've previously described, the evaluation criteria revolves around 4 main categories, including industry expertise, delivery expertise, customer references, and industry focus.  While all four categories are important for end users to review, we've consistently found that vendors winning the deals are those that excel in two main areas: Customer references and industry expertise, one of which is much easier to fix than the other.

  • Effective Collaboration Is Key to Agility and Success in the...
    Entry posted Aug 4 by Dr. Alan S. Louie , tagged Asia Pacific, Best Practices, Clinical Trial Management, Drug Development, EClinical, Electronic Submissions, EMEA, Genomics, North America, Pharmacovigilence

    As life science companies frantically pursue new drug approvals to replace expiring blockbusters, they are actively tightening their organizations to improve operational efficiency, acquiring promising external drug candidates and companies in hopes of speeding time to market, and pursuing alternative partnerships and collaboration models in hope of gaining competitive advantage and early access to knowledge and/or drug candidates.  With multiple, geographically diverse R&D resources working under the same umbrella, it is increasingly no longer possible for any one single individual to independently drive a drug development effort forward.  It is clear that collaboration and team approaches will be core for organizations hoping to become sustainable and successful over the long term.  Supporting these teams, technology and innovation is helping to drive progress through relatively mature and constantly improving tools that are often available at the touch of a keystroke.

  • Up 31% in Two Years: Manufacturing and Supply Chain IT...
    Entry posted Jul 26 by Eric Newmark , tagged IT Outsourcing, Supply Chain Management

    With the global recession now in the rear view mirror, life science companies are slowly shifting their primary cost-cutting focus back toward long-term top-line growth. Manufacturing and supply chain strategies are not only a critical component of maintaining lower-costs, but they also hold the key to reducing corporate liability, protecting brand equity and optimizing operational efficiency going forward. A key piece of this effort includes IT outsourcing, and all fingers point to continued growth in this market.

  • There's An App for That – The Opportunity for Mobile...1
    Entry posted Jul 20 by Dr. Alan S. Louie , tagged Best Practices, Business Intelligence, Clinical Trial Management, Component and SOA Technology Adoption, Consumerism, Customer Relationship Management, Drug Development, EClinical, Electronic Data Capture, Medical Home

    Notwithstanding the current issues with the iPhone 4, the use of mobile technologies (including, cell phones, Blackberries, iPhones/iTouches, PDAs, and iPads) are delivering significant benefits to the life sciences industry today.  In an upcoming short report, I plan to highlight some of the specific areas where mobile solutions are justifying their use and delivering value in the industry across a wide variety of applications.  With the role of consumers in the greater health industry continues to grow, this trend will likely increase, bringing new data and insights to drive better medical interventions and constantly moving the industry forward.  Patient recruitment, treatment compliance, eDiaries, medical alerts, adverse event reporting, remote patient monitoring, collaboration, and consumer marketing are all areas where mobile solutions are likely to have early impacts.  I welcome a discussion on where else mobile solutions will change existing practices for the better as well as assessment of applications likely to result in dead ends. 

  • Top Life Science Vendor Preferences for 2010100%
    Entry posted Jul 13 by Eric Newmark , tagged IT Outsourcing

    Each year, IDC Health Insights polls the life science industry and asks companies about which IT vendors they plan to spend money with over the coming year.  The survey, which is performed as part of our Life Science Leading Indicators report, asks companies to name all software, hardware, and IT service vendors that they plan to use within the next 12 months. This year's survey concluded this morning, and received 135 responses, so I thought I'd share some of the highlights.

  • Glass Half Full or Half Empty – Politicking Not Helpful in...1100%
    Entry posted Jun 29 by Dr. Alan S. Louie , tagged Asia Pacific, Best Practices, Care Management, Clinical Trial Management, Drug Development, EMEA, North America, Pharmacovigilence

    One should expect that any quote from a politician that is included in a discussion on the globalization of clinical trials is going to bring an agenda … and present a heavily one sided slant on the issue.  In this case it was a democrat in a New York Times article, positing that the growth in the contribution of foreign clinical trial sites and patients to U.S. drug applications is a clear sign of exploitation of lower standards and limited FDA oversight in pursuit of lower costs and higher profits.  A reverse politicalization of the issue would focus on raising the quality of healthcare worldwide, better managing the increasingly high cost of new drug development, and speeding up the availability of new treatments for the benefit of mankind.  The insidious nature of both extreme arguments is the fact that they include tidbits of truth wrapped in a blanket of extremism, introducing doubt as to the extremity of the proclamation.  In a short report to be published shortly, I lay out the complex drivers and issues that contribute to the growth in globalization of clinical trials.  It is clear that this trend is here to stay and that the issue cannot and should not be reduced to an extreme sound bite that is likely to reinforce personal biases and hamper discussions needed to move the industry forward in a rational and positive fashion.

  • Selecting the Right IT Outsourcing Vendor: Help Is On The...
    Entry posted Jun 21 by Eric Newmark , tagged Supply Chain Management

    Most pharmaceutical companies today embrace outsourcing as a key piece of their core IT strategy. Given that success begins with selecting the right partner, we receive a significant amount of inquiries from our customers looking for information and guidance during their vendor evaluation process, to ensure a fully informed decision is made. To best support this,  every two years we publish a dual-series of buyers guides covering outsourcing firms servicing the manufacturing & supply chain space, and those servicing the sales & marketing arena. If you've never used an IDC Buyer's Guide before, the report bears close resemblance to a traditional consumer report review of a particular product or service.

  • Rise of the Intelligent Machines – Smarter Apps Enable...
    Entry posted Jun 7 by Dr. Alan S. Louie , tagged Asia Pacific, Best Practices, Business Intelligence, Clinical Trial Management, Component and SOA Technology Adoption, Drug Development, EClinical, EMEA, North America
    No, I'm not talking about the second coming of the Terminator as the next blockbuster movie. And machine may be a bit of a stretch, although computers, servers, and even in vitro medical devices are all machines. What is becoming apparent, however, is that software applications and the devices that they are associated with or power are becoming increasingly intelligent and able to provide much more than a simple regurgitation of data on demand. Advances in technology and the decreasing cost of IT are driving continuing innovation in the life science industry. With the ability to effectively run larger and more complex applications both on user laptops or on the web, it is becoming increasingly common to codify known knowledge into sophisticated applications that allows users to make smarter decisions based on knowledge that they may not be directly aware of. Workflow engines are enabling real-time data events to automatically initiate actions and alerts, ensuring that critical activities (e.g. drug safety events) are acted upon in the shortest time possible. Beyond exceptional events, intelligent apps are supporting improved productivity at basic levels (including, for example, the ability of Microsoft Word to automatically correct my poor typing in the generation of this blog!).
  • Healthcare Reform's Impact on Revenue Management:...
    Entry posted Jun 1 by Eric Newmark , tagged Channel Management, North America

    While the impact of healthcare reform (HCR) on the pharmaceutical industry turned out to be significantly less than many in the industry had feared, employees on different sides of pharmaceutical companies certainly have varying opinions on the significance of its "impact".

  • The FDA Stands Up as DTC Genetic Testing Tries to Go Retail
    Entry posted May 18 by Dr. Alan S. Louie , tagged Ambulatory Care, Best Practices, Care Management, Consumerism, Genomics, North America, Public Policy and Government Health Programs

    As anyone (including me) that has ever worked in retail knows, product placement is key to driving impulse purchases.  The candy bars at the checkout stand, preferred branded products at eye level, and lead sales items at the ends of the aisle are all purposefully designed to encourage potential customers to spend their hard earned dollars.  Pathway Genomics efforts to partner with Walgreens drugstores to provide a retail access conduit for their genetic testing services ($20-30 retail for a spit kit with additional costs depending on the genetic testing desired) seem to have breached the tipping point at the FDA on decisions as to whether to regulate direct to consumer (DTC) genetic testing.  In an FDA enforcement letter dated May 10, Pathway Genomics was requested to demonstrate FDA approval for the testing (which doesn't exist) or respond as to why FDA approval isn't required.  This action has triggered a wait-and-see response from Walgreens (and also CVS) regarding sale of Pathway's product and is likely to delay retail DTC genetic test options over the near term (or possibly for the foreseeable future).  It remains to be seen whether these FDA's efforts stop at DTC products or whether they further expand to all currently unapproved genetic testing. 

  • CRM: Mature Technology or Stuck in its Infancy?
    Entry posted May 13 by Eric Newmark , tagged Business Intelligence, Customer Relationship Management, Sales Force Effectiveness

    Over the last few weeks I have spoken with numerous sales and marketing leaders across the pharmaceutical industry in support of research we are currently conducting. Conversations have spanned several subjects, but CRM effectiveness in particular has stuck out and continued to resonate on my mind. Several conversations on the topic all ventured in the same direction: What does the future of CRM effectiveness look like?

  • Intelligent Apps: Delivering Knowledge at the Speed of...1
    Entry posted May 4 by Dr. Alan S. Louie , tagged Best Practices, Business Intelligence, Clinical Trial Management, Drug Development, EClinical, EMEA, North America

    I can clearly remember wandering "the stacks" in our university's libraries, accompanied by a pocket full of nickels to collect and Xerox relevant articles to further our research.  Acquiring relevant reports often took days, if not weeks to collect (e.g. requesting a document to be mailed from Dialog) and that was the accepted norm.  The same information is now available at the push of a mouse, instantaneously available on our laptops.  Beyond the savings in time and effort, this change in the availability of information has resulted in the ability to better support creative thinking, since access to data is no longer the slow point in the process.  As technology has continued to advance, we are now moving beyond the historic direct paper/electronic information access to smarter, more intelligent access using tools that recognize a researcher's intent and presents relevant information to best further creative and analytical processes.  This automated intelligence is becoming increasingly ubiquitous across the industry and can be expected to directly contribute to accelerating progress in science and beyond.

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