Demonstrating Medical Device Value to Purchasers

www.valueconnected.com • contact@valueconnected.com • Tel. +31 70 250 0078 • WTC The Hague, Prinses Margrietplantsoen 33, 2595 AM The Hague, The Netherlands
ROADMAP TO MARKET ACCESS
Demonstrating value to purchasers
3rd Annual Medical Device Access Leaders Forum
Berlin, Germany – 9th December, 2014
Ernesto M. Nogueira
Managing Director, ValueConnected

Medical technology is the number one
innovative industry in Europe
18 to 24 months innovation cycle
One new patent every 50 minutes
Ã
Ã
Ã
RESOURCE
ALLOCATION
DILEMMA.
8
Some facts:

A FEW YEARS AGO
TODAY
Demands have increased significantly
AVAILABLE TIME TO RESPOND TO MARKET
MARKET DEMAND
FOR EVIDENCE
MARKET DEMAND
FOR EVIDENCE

ANNUAL GROWTH OF MEDTECH EUROPEAN SALES
2000-2010 2010-2020 Source: BCG, 2013
While growth has decreased
10%
3%

Decisions come from two different groups:
More professional – consolidation into groups
PURCHASING1.
Higher demand for clinical and economic evidence
REIMBURSEMENT2.
PRICE

Options for establishing prices:
Immediate positive impact on revenues
Medium and long-term issues
• Pressure for further price cuts
• Weak differentiation point
• Quality of service
LOWER PRICES.01
Results may not be immediate
Medium and long-term opportunities
• Educate and develop market
• Build trust
• Unique market position
DEMONSTRATE VALUE.02
Â DOES NOT CREATE VALUE. Ã JUSTIFIES PRICE.

So what exactly is value?
01 Perception coming from the market
02 Benefits to different stakeholders
03 Comparable to alternatives
04 Measurable/quantifiable
05 Combines relevant clinical & economic aspects

Features vs Benefits
“Our new device comes
in 5 different sizes that
are all easy to use”
THIS IS A FEATURE,
NOT A BENEFIT.
!
zzzz

ValueValue is the perception of market
decision-makers about the clinical and
economic benefits of your product.

How important is value for Purchasers?
“Value-based healthcare stood out
as the top priority across all
segments of respondents.”
Source: BCG 2013 survey

Every month, thousands of medical products are launched on the
market, yet only a fraction will demonstrate enough value to
achieve market adoption.
Our job is to make sure yours is one of them.
Welcome to ValueConnected.

Demonstrating value to purchasers
INTRODUCING AN INNOVATIVE TREATMENT.
Case Example:

One of the largest European markets had patient monitoring
as the standard care pathway for a certain disease
Health Technology Assessment (HTA) agencies had given
positive appraisal for the new technology
About 12% of patients would develop serious complications,
including neoplasia, thus leading to expensive treatments
Ã
Ã
Ã
However, local purchasers only focused on the upfront costs
and did not understand the value of the innovation
Â
“More expensive than standard treatment”

HOW MUCH DOES IT
REDUCE
COMPLICATIONS?
WHAT IS THE IMPACT
ON REDUCED
HOSPITALIZATIONS?
HOW CAN WE JUSTIFY
THE UPFRONT
INVESTMENT?
WHAT IS THE
EXPECTED IMPACT ON
COSTS AND BUDGET?
Facing initial market barriers

Step 1:
IDENTIFY DECISION MAKERS AND THEIR PROBLEMS.
CLINICAL GROUPS:
Responsible for prescribing the treatment
Believed in the technology and could not justify its economic benefits!
PURCHASING DEPARTMENTS:
Responsible for the final purchasing negotiation and decision
Uncertain about the budget impact from the acquisition of the technology!

WHICHEVIDENCE
ADDRESSESTHE
PROBLEMS?
WHATCOSTDATA
ISNEEDED?
WHATARETHE
EVIDENCEGAPS?
Step 2:
REVIEW EVIDENCE AND COLLECT DATA.

Step 3:
BUILD AND COMMUNICATE THE VALUE MESSAGES.
Reduced hospitalization days based on patient profilesÃ
Overall economic result and break-even analysisÃ

Prepare commercial
teams to deliver value
messages.
Step 3:

And go from
product supplier to
business partner.
Step 3:
Partner

• Better understanding of real results as compared to the clinical evidence
• Stronger arguments to request the technology
CLINICAL GROUPS.
• Detailed economic assessment of the new technology
• “You are doing our jobs for us”
PURCHASING DEPARTMENTS.
Main results:
• Prepare teams to approach non-clinical decision makers
• Increased sales
COMPANY.

Value justifies the price of medical technologies in the
current cost-cutting environment
The ability to communicate value is as important as the
skills to generate the value message
Before demonstrating value, companies must focus on the
decision-makers and identify their problems
Ã
Ã
Ã
Value-based strategies are more than only tools, they impact
business models and selling approaches
Ã
Key take-aways:

Ernesto M. Nogueira
Managing Director
Office: +31 70 250 0078
Mobile: +31 6 468 92 568
Email: enogueira@valueconnected.com
Web: www.valueconnected.com
in
t @ernestonogueira
in/ernestonogueira
Thank You.

Demonstrating Medical Device Value to Purchasers

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Andere mochten auch

Andere mochten auch (14)

Ähnlich wie Demonstrating Medical Device Value to Purchasers

Ähnlich wie Demonstrating Medical Device Value to Purchasers (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Demonstrating Medical Device Value to Purchasers