Got value? Determine it. Demonstrate it. Communicate it. Realise it

Abstract

Many healthcare systems are in crisis due to rising costs, rising demand and inadequate funding. Consequently, healthcare decision makers are increasingly demanding that costs for new health technologies be justified with scientifically rigorous evidence. This is particularly true for biotechnology products, which tend to be more expensive, require more handling and have more uses/indications beyond that which is experienced for traditional pharmaceutical products. Given today's demands for demonstrating value in medicine, health economics and outcomes research (HEOR) techniques are now in focus, and increasingly linked to brand strategy. To facilitate this process, a Value Development Plan (VDP)â„¢ is warranted; a process by which to identify, demonstrate, communicate and realise the value of a product; similar and running parallel to a clinical development plan. There are four key steps in building a VDP. Briefly, these include the following:

1. Value determination– benchmarks available alternatives in a therapy area based on clinical/economic value.
2. Value demonstration– identifies tactical outcomes research and economic model projects to demonstrate the clinical and economic elements, respectively, of the target value proposition.
3. Value communication– helps to inform and define the value communication strategy and tactics for relevant audiences.
4. Value realisation– defines price ranges for products based on demonstrated value and addresses reimbursement and seamless market access.