Commercial success of pharmaceutical products today depends increasingly upon understanding the needs of commercial and government payers in the highly-influential Managed Markets sector. Recognizing this paradigm shift, savvy bio-pharmaceutical companies are seeking to improve their access to payers to develop the best possible Managed Markets insights before product launch.

1. Managed Markets Market Research:
Effective Structures & Activities for
Gaining Maximum Payer Access & Insight
Best Practices, LLC
Business Excellence Board
Strategic Benchmarking Research
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2. Managed Markets Market Research:
Effective Structures & Activities for Gaining Maximum Payer Access & Insight
Table of Contents
Field Study Overview
Key Findings
Universe of Learning: Benchmark Class
Structure Preferences
Research Types That Deliver Greatest Insight
Pre-Launch Objectives That Focus Research
Innovative Practices for Developing Insights
Timing of Key Managed Markets Market Research Activities
Key Trends, Best Practices & Critical Pitfalls
Appendix of Full Source Data & Analysis
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3. Research Objective
This client-driven research was conducted to help pharmaceutical and biotech companies
build effective Managed Markets market research functions that can drive access to—and
gain critical insights from—the increasingly influential Managed Markets sector.
Study Objective & Methodology Key Topic Areas
Optimal structure and organizational fit
Best Practices, LLC undertook this
of the function responsible for Managed
research to identify market research Markets market research (MMMR)
activities and structures that are most
Major pre-launch objectives for MMMR
effective for gaining access to – and
gathering insights from – the increasingly Top global Managed Markets research
important Managed Markets sector. activities by product development phase
This research was completed using two Most effective activities for accessing
hard-to-reach channel partners
insight and intelligence gathering
approaches: an online benchmarking Primary categories of MMMR
survey of Managed Markets executives at Most critical pre-launch study types
leading pharmaceutical companies and in-
Trends in MMMR staffing and focus
depth field interviews with selected survey
participants. Best practices and executive insights
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4. Definitions & Abbreviations
The following definitions and abbreviations are used in this study:
Definitions
1. Managed Markets: The function within pharma that is concerned with actions of
payer (payor) organizations – including both commercial and government providers of
prescription drug coverage (e.g., Medco, Cigna, United Healthcare, Medicare, Medicaid,
Veterans Administration.)
2. Managed Markets market research (MMMR): The study of payer organization
perspectives on topics such as meaningful endpoints, health outcomes, definition of
innovative medical products, pricing requirements, formulary access/positioning,
contracting, and reimbursement. Also includes research on payer companies and agencies
and on current and future trends in the payer and managed care environment.
3. FTE: One FTE (full time equivalent employee) is the equivalent of one person working full
time. Example: 2 people each working ½ time=1 FTE.
Abbreviations
• MMMR=Managed Markets Market Research
• MM=Managed Markets
• MR=Market Research
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5. Sample Key Findings
The following key findings and insights emerged from the field surveys and
executive interviews:
Key Sources for Developing MM Insights: Ad boards and account managers
(setting up team meetings) are the most effective MM activities and yield the best
insights. Ad boards become most effective when innovative approaches are applied to
engage diverse payer viewpoints instead of re-using the same small group of
traditional payer participants.
Role of Account Managers Is Expanding to Access MM Insight: Account
managers’ roles are expanding due to the increase of Managed Markets influence in
the pharmaceutical industry today. Account managers are seen by most participants
as the most reliable method for accessing hard- to-reach partners. MM account
managers play different valuable roles depending on the type of product, its market-
entry order and its clinical profile.
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6. Universe of Learning: Participating Companies
Eleven leading pharmaceutical companies participated in this field research. Ten
organizations contributed to the performance benchmark survey, and six participated
through in-depth “lessons learned” interviews and discussions. Ninety-percent of
participants are at the director level or above.
Participants in Survey Only
Survey Only Participants in Survey & Interviews
Survey & Interview
Interview Only
Participants’ Job Titles: EVP, Commercial Operations; VP, Managed Markets; Senior Director,
Business Improvement; Executive Director, Managed Markets (2); Director, Managed Markets;
Director of Marketing Research; Director of Strategy—Managed Markets; Associate Director of
Managed Markets; Manager, Payer Analytics; and Director of Marketing—Managed Markets.
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7. Ad Boards & Team Meetings Have Greatest Decision Impact
Six out of ten participating companies rank payer advisory boards and use of a team
approach to account meetings as the global MMMR activities with the highest impact
on strategic choices or decisions.
Q. Which of the following global activities have the greatest impact on strategic choices?
% Very High Impact
(Rated "6" or "7")
Payer advisory boards 60%
Team approach to critical account meetings 60%
Market research 50%
` 40%
Health outcomes/economics data collection
Field interviews with individual payers 30%
Interviews with internal account managers 20%
Managed markets industry meetings & events 10% % Responses
0% 10% 20% 30% 40% 50% 60% 70%
(n=10) Ranking Scale: 1=No impact to 7=Very high impact
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8. Payer Advisory Board Success Strategies
Payer advisory boards are a high-impact, high-value activity for capturing Managed
Markets insights – in part because companies have developed strategies to
overcome limitations of this vehicle.
Payer advisory boards can be highly effective for gathering Managed Markets insights if
companies use innovative strategies to overcome some inherent limitations.
Limitations:
The same few people are on the boards every time
There is insufficient diversity among board members
Some important payers strictly prohibit participation
because of compliance issues
Strategies:
Target a wider range of people within a payer company: “Most of the time we're all recruiting the vice-president of
pharmacy or director of pharmacy. Look to people who are in charge of putting together dossiers. Who are those
people and what is the information they look at when they're putting together a package for the P&T committee?
Find medical directors working on a tech assessment that you should be targeting, because they're going to give
you a very different perspective than are pharmacy directors. Pharmacy directors are thinking about placement on
the formulary of a class of drugs and how you compete in that class of drugs. Medical directors will be thinking
about what's medically necessary and what's not medically necessary.” – Interviewed Executive
Reduce the size and change the name: “The big ad boards tend not to give you quality. One or two dynamic people
often dominate and shut down the conversation. A group of four or five maximum gives us far better dialog. We don’t
call them ad boards either—they’re focus groups now. We have had better success with smaller groups, not any
different than getting a small group of physicians together at a society meeting—to give feedback. “ – Interviewed VP
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9. Managed Markets MR Activities Peak During Phase 3
Phase 3 is the peak time for most global activities in Managed Markets market research,
although some companies begin selected activities as early as the Pre-Clinical stage of
product development. Earlier payer activities are a growing trend.
Q. During which product development phase does the Managed Markets MR staff perform each activity?
100% Field interviews with
individual payers
Health outcomes/economics
80% data collection
Interviews with internal
60% account managers
% companies
Managed markets industry
meetings & events
40%
Market research
20%
Payer advisory boards
0%
Pre - Phase 1 Phase 2 Phase 3 Launch Team approach to critical
(n=8-10) Clinical account meetings
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10. Sample Best Practices: Structure & Communication
Benchmarked companies shared some of their best practices for Managed Markets
market research activities.
Structure/ Internal Communication
Segment customer groups so that answers are more meaningful based on segment
Keep management informed on challenges payers face. (“The more you can give senior
management insight into the legitimate challenges that managed care plans face as they
try to balance their cost picture, the better off you are. Communicate this right down to
the rep level.”)
Hire staff who have worked in the Managed Markets sector.
Develop internal and external networks of MM experts.
Align with internal government affairs group to be alerted
to and to help shape future policy.
Take brand team members to payer meetings.
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11. About This Research
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12. About This Research
This presentation is the result of primary client-driven research conducted by Best
Practices, LLC. See www.best-in-class.com for more on our research services.
This benchmarking study is intended to be a directional indicator
on the Managed Markets market research function.
Clients have used our benchmark research in the following ways:
• Gap Analyses: Identify areas for improvement.
• Business Cases: Prepare a proposal for change.
• Training: Learn about new areas, industry trends & standards.
• Resourcing Decisions: Assess staffing, budget & structure.
• Sharing Research: Satisfy internal customers with unique data.
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13. Serving your Research Needs
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14. About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that conducts work based on
the simple yet profound principle that organizations can chart a course to superior
economic performance by studying the best business practices, operating tactics
and winning strategies of world-class companies.
Best Practices, LLC research provides key directional indicators, proven business
practices and executive insights to support organizations seeking to achieve best-
in-class business performance.
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