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Access to Market

Access to the market in the pharmaceutical industry refers to identifying, evaluating, and taking advantage of market opportunities effectively.

Problem

Access to the market in the pharmaceutical industry refers to identifying, evaluating, and taking advantage of market opportunities to effectively and profitably launch innovative pharmaceutical products. This process involves business development strategies, such as technology acquisition, investment in research and development, and collaboration with partners. Pricing strategies can also be implemented, effective distribution channels can be selected, and marketing campaigns can be created that target the target market's specific needs. Access to the market for a pharmaceutical company can be a significant challenge, as the pharmaceutical market is highly regulated and competitive. The cost of developing and marketing new drugs can also be extremely high. Bringing a new drug to market costs approximately $2.6 billion (1). In addition, the processes for approval of new drugs by regulatory entities can be tedious and costly. The approval process for a new drug by the FDA is estimated to take 8 to 12 years (2).

Size of the Problem

  • The average cost of bringing a pharmaceutical asset to market has reached $2 billion (1). However, over one-third (36%) of all new launches in the United States do not meet expectations (2).
  • Half (50%) of the failures in drug launches in the United States were attributed to limited market access, followed by inadequate market understanding and customer needs (46%) and poor product differentiation (44%) (3).

Why it matters

Several significant issues affect access to the market in the pharmaceutical industry. Some of the most pronounced include:

■ High costs of development and regulation: The pharmaceutical industry faces high costs in researching, developing, and approving new products. These costs can be passed on to drug prices, limiting patient access (3).
■ Regulatory barriers: Regulation of pharmaceutical products can vary significantly in different countries and regions, which can delay market access and increase costs (4).
■ Lack of access to healthcare: In some countries and regions, access to healthcare is limited or nonexistent, making it difficult for patients to receive the needed medications (2).
■ Changes in public health policy: Public health policies can change, affecting medication coverage and availability in the market (5).
■ Competition from generic products: Once the patent on an innovative drug expires, generic products that compete on price may appear, limiting access to original medications (3).

Solution

Artificial intelligence (AI) can improve access to medications and overcome current challenges in the pharmaceutical industry. Regarding research and development, AI can reduce costs by identifying promising molecules and compounds and optimizing clinical trial design. Additionally, AI can predict the safety and efficacy of new pharmaceutical products, accelerating the approval process and standardizing regulatory processes in different countries and regions. Regarding access to healthcare, AI can improve disease identification and treatment, reduce the need for expensive medications, and improve access to healthcare in remote and resource-limited areas. It can also help predict changes in public health policy, adapt the production and supply of medications more effectively, develop new products and services that differentiate innovative drugs from generics, and optimize drug prices.

Datasources

  • Prescription data: includes information on the amount and frequency of prescription drugs in different geographic regions, hospitals, clinics, doctors, and medical specialties. This data can help pharmaceutical companies understand market demand and physician and patient preferences better.
  • Sales data: includes information on the revenue and market share of different medications and pharmaceutical products. This data can help pharmaceutical companies identify growth opportunities and optimize their pricing and marketing strategy.
  • Clinical trial data: Includes information about the results of clinical trials, the patients involved, the doses used, and the observed side effects. This data can help pharmaceutical companies better understand the effectiveness and safety of their products and identify possible opportunities for research and development.
  • Patent data: Includes information about granted and pending patents for different drugs and pharmaceutical products. This data can help pharmaceutical companies protect their intellectual property and plan their market launch strategy.
  • Demographic and public health data: Includes information about the population, disease rates, prevalence of risk factors, and patterns of healthcare in different geographic regions. This data can help pharmaceutical companies identify market opportunities and develop products tailored to the specific needs of different populations.

Citations

  1. Emily May et al., Nurturing growth: Measuring the return from pharmaceutical innovation 2021, Deloitte, January 2022. (https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/life-sciences-health-care/Measuring-the-return-of-pharmaceutical-innovation-2021-Deloitte.pdf)
  2. Jeff Ford et al., Key factors to improve drug launches: Why drug launches miss market expectations and what to do about it, Deloitte Insights, March 26, 2020. (https://www2.deloitte.com/content/dam/insights/us/articles/6491_Commercial-launch-success-analysis/DI_Key-factors-to-improve-drug-launches.pdf)
  3. Examples of access stakeholders include public payers (such as Medicare and Medicaid programs), private payers (such as health insurers, PBMs, and employers), integrated delivery networks. (https://www.deloitte.com/global/en/our-thinking/insights/industry/life-sciences/pharmaceutical-market-access.html)
  4. Brett Davis et al., Personalized therapies in the Future of Health: Winning with digital medicine products, Deloitte Insights, March 4, 2021. (https://www2.deloitte.com/us/en/insights/industry/life-sciences/importance-of-personalized-therapies.html)
  5. Deloitte Market Access Excellence (MAx) commercial framework, Deloitte, accessed January 28, 2022. (https://www2.deloitte.com/us/en/pages/life-sciences-and-health-care/solutions/pharmaceutical-market-access-solutions.html)

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