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Understanding Managed Markets: Effective Market Research Structures & Activities to Maximize Payers Access & Insights

ID: SM-183


6 Info Graphics

26 Data Graphics

699 Metrics

50 Narratives

20 Best Practices

Pages: 67

Published: Pre-2013

Delivery Format: Shipped


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Today’s physicians are rapidly losing their influence over patients’ drug utilization decisions and unfortunately a large number of bio-pharmaceutical companies have failed to recognize that third-party payers, such as government and commercial organizations, now control the vast majority of prescription drug expenditures. In fact, it is estimated that third-party payers in the Managed Markets sector currently control more than 80 percent of patient access to prescription drugs in the United States.

Continued commercial success of pharmaceutical products depends largely on the ability of bio-pharmaceutical companies to evolve their MMMR (Managed Markets Market Research) structures to work effectively in the current payer-driven environment. A successful MMMR structure should provide managers with tactics to easily anticipate and act upon the needs and wants of these newly empowered third-party payers. The companies who are refocusing their marketing strategies to strengthen their relationship with these Managed Markets organizations will see the greatest impact in their product’s commercial success.

This Best Practices, LLC benchmarking report identifies the Market Research structures and activities that best support the Managed Markets function in gaining payer access and insights around pharmaceutical products, as well as captures executives’ best practices and lessons learned for working successfully in the current payer-driven environment.

Industries Profiled:
Biotech; Pharmaceutical; Health Care; Medical Device

Companies Profiled:
Amgen; Johnson & Johnson; Alcon; Solvay Pharmaceuticals; Novo Nordisk; Jazz Pharmaceuticals; Xanodyne Pharmaceuticals; Ther-Rx; GlaxoSmithKline; Sepracor; Abbott Laboratories

Study Snapshot

Best Practices, LLC fielded an online benchmarking survey with managers and executives representing Managed Markets or Market Research functions at leading pharmaceutical and biotech companies. Analysts then conducted in-depth interviews with selected research participants. The survey and interview collected benchmark data on the following aspects of Managed Markets Market Research (MMMR) organizations:
  • Current and optimal structure and organizational fit
  • Effectiveness of current structure
  • Pre-launch research objectives
  • Key global MMMR activities with greatest impact on strategic choices
  • Timing of activities by product development phase
  • Activities most effective for generating insights
  • Activities most effective for accessing hard-to-reach partners
  • Principal drivers of MMMR activities
  • Percentage of research that is qualitative vs. quantitative
  • Top Three most important types of pre-launch studies
  • Anticipated changes in resource allocation levels
  • Trends in use of vendors to gather payer information
  • Projected changes in MMMR focus
  • Best practices and pitfalls

Key Findings

Among the findings that emerged from this research were the following:

No Single Structure Is Optimal: Many structure types can work effectively for the Managed Markets Market Research function, and benchmark partners use several different models. A more critical success factor than the structure type is the level of research staff knowledge and understanding of the Managed Markets sector. Developing staff specialization and expertise is the key to making any structure begin to work from an MMMR perspective.

Manage Resource Competition: Brand team and Managed Markets research projects generally have different targets (physician/patient vs. payer) and find themselves competing for resources and attention. Avoid MM priorities being defused or fragmented through resource competition. This can be a critical pitfall.
Table of Contents

Table of Contents 1

Figures and Tables 3

Executive Summary 4

Introduction 4

Objective & Research Approach 4

Project Participants 5

Definitions & Abbreviations 7

Key Findings & Insights 8

Structure & Organization 11

Introduction 11

Organizational Fit 11

Inability to Measure Value Limits Resources for Managed Markets 20

Focus of Managed Markets Market Research 24

Introduction 24

Pre-Launch Objectives 24

Study Types 27

Research Drivers 28

Data Types 29

Effective Activities & Approaches for Payer Access & Insights 32

Introduction 32

Activities with High Decision Impact 32

Best Approaches for Insights From MM Sector 33

Best Approaches to Hard-to-Reach Payers: Access & Insights 34

Understand and Demonstrate Interest in Customer Issues to Open Payers’ Doors 36

Viewpoints on High-Rated Approaches 40

Reduce the Size of Ad Boards to Facilitate Better Conversations 41

Expand Participant Parameters to Increase Advisory Board Diversity and Broaden Perspectives 41

Account Management Viewpoints 42

Timing of Key Activities 45

Begin Managed Markets Research Activities before Phase 3 to Ensure Clinical Trial Design Produces the Data That Payers Will Request 47

MMMR Roles 50

Current Trends in MMMR 52

Companies Are Adapting Slowly to the New Paradigm: 53

Best Practices, Pitfalls & Success Factors 57

Participants’ Best Practices 57

Pittfalls and Lessons Learned 60

Appendix: Full Source Data 63

List of Charts & Exhibits

Figure 1.1 Companies Participating in Benchmark Study 6
Figure 1.2 Company Size: Revenue & Number of Products 6
Figure 1.3 Industry Experience of Study Participants 7
Figure 2.1 Market Research Is the Primary Functional “Home” for MMMR 11
Figure 2.2 Group Reports into MM Organization at 50% of Firms 12
Figure 2.3 MMMR Planning & Leadership Are Usually up to Directors 13
Figure 2.4 Majority of MMMR Is Performed within MR Dept. 13
Figure 2.5 MMMR Can Be Effective in Variety of Functional Homes 15
Figure 2.6 MMMR Structure Can Influence Effectiveness 16
Figure 2.7 Dedicate MMMR Staff & Resources to Seed Effectiveness 17
Figure 2.8 MMMR Resource Allocation out of Line with Payer Import 18
Figure 2.9 Effectiveness Limited by Competition for MR Resources 19
Figure 2.10 Most Rate Their MMMR Functions Only “Somewhat Effective” 21
Figure 3.1 Reimbursement Needs Are Top Pre-Launch MMMR Focus 25
Figure 3.2 Pricing Is the Most Important Pre-Launch MMMR Study Type 27
Figure 3.3 Market Research is Primary Driver of MMMR Activities 29
Figure 3.4 Qualitative Research Is Primary Focus for Manages Markets 30
Figure 4.1 Ad Boards & Team Meetings Have Greatest Strategic Impact 33
Figure 4.2 Activities for Best Insights into Overall MM Sector 34
Figure 4.3 Account Manager Provide the Best Access to the Hard to Reach 35
Figure 4.4 Demonstrate Value to Increase Access to Hard-to- Reach Payers 37
Figure 4.5 Additional Approaches for Hard-to-Reach Payers 38
Figure 4.6 Approaches for Best Insights from Hard-to-Reach Payers 39
Figure 4.7 Payer Advisory Board Success Strategies 42
Figure 4.8 Account Manager Role in MM Sector Is Expanding 43
Figure 4.9 Peer-to-Peer Team Meetings Improve Access to Payers 44
Figure 4.10 :Pre-Clinical Stage 45
Figure 4.11 Managed Markets MR Activities Peak During Phase 3 46
Figure 4.12 Companies Shifting Focus to Earlier & Extended MM Research 47
Figure 5.1 Summary of Primary Managed Market MR Activities & Roles-1 50
Figure 5.2 Summary of Primary Managed Markets MR Activities & Roles-2 51
Figure 5.3 Summary of Primary Managed Markets MR Activities & Roles-3 51
Figure 6.1 Increasing Resources & Use of Account Managers Are Trends 52
Figure 7.1 Tips for Optimizing Payer Discussions 59
Figure 7.2 Success Factors For Creating A High-Impact MMMR Culture 60
Figure 8.1 Pre-Launch Objectives - Detail 63
Figure 8.2: Impact of Global Activities on Strategic Choices – Detail 63
Figure 8.3 Activity Effectiveness for Overall Insights – Detail 64
Figure 8.4 Activities for Hard-to-Reach Partner Insights - Detail 64
Figure 8.5 Activities for Accessing Hard-to-Reach Partners - Detail 65
Figure 8.6 Global Activities Conducted at Each Development 65