We are now in the era of evidence-based therapy selection. While still we’re very early, we’re already seeing how new business models are disrupting legacy life sciences companies.
In this new era, payers will hold life sciences companies accountable for their therapies to deliver the health and economic outcomes committed to as part of formulary listing. Life sciences companies that thrive in this era are the ones in a position to make aggressive performance-based proposals that win favorable listings with public and private payers.
To get into this position, life sciences companies will need to establish two key types of infrastructure:
As this transformation takes place, we will see the emergence of new and disruptive business models.
Some life science companies will create value by building their PSP infrastructure into a significant asset where their business model may rely on making this asset available to other life science companies. In other cases, life sciences companies may abandon drug R&D, choosing instead to acquire agents that can best leverage their PSP infrastructure.
Those life sciences companies experiencing success tomorrow are the ones making decisions and investments for long-term value creation today.
They recognize the need to focus on specific types of patients for their therapies and are making the early investments necessary in their analytics infrastructure to support this focus. Fundamental changes are being made to commercial and medical models to reflect this new reality to continue driving the business today and transition to what will become our evidence-based world.
The transition won’t be easy (or as quick as many are predicting) but the disruption that will take place in the process will reshape the life sciences industry and be exceptionally rewarding, to some.
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