RESEARCH TRIANGLE PARK, NC – Managed care and product reimbursement continue to grow in strategic importance to pharmaceutical and biotechnology industries. Many companies are in the process of expanding their managed markets department to cover more accounts and refine product messaging. In a newly released report “Managed Markets 2007: Pharmaceutical Reimbursement Strategy, Organizational Structure and Medicare Part D” (www.PharmaManagedMarkets.com), Cutting Edge Information outlines data every brand team should know about pharmaceutical reimbursement.

Drug Companies Change Managed Markets Team Structure to Fit Medicare Part D
The advent of the Medicare Part D prescription drug benefit has the potential to dramatically shift the pharmaceutical industry’s strategy for gaining reimbursement for its products. However, most drug companies have made few structural changes, if any, to their managed care departments. With an estimated 40 million beneficiaries selecting their plans this year, some companies are planning significant changes, such as expanding account management and new product messaging, to gain a greater share of voice with the insurance providers.

Managed Markets Sales Teams Receive Bigger Budgets than Marketing Counterparts
In many cases, companies exhibited a trend of higher investments on the sales side of
managed markets. Three participating companies, one in each size category, allocated higher dollar amounts to their managed markets sales functions than their managed markets marketing functions. Some companies believe it is necessary to invest more in sales to win more accounts for the company’s entire product portfolio. Formulary access is vital to brand success – without it, potential blockbusters may never reach peak annual sales targets.

Mid-Size Companies Tend to Lack Critical Managed Markets Department Resources
Analyzed data on managed markets department structure across companies of various sizes revealed mid-size and smaller companies have few managed markets marketing resources. In fact, many have no dedicated marketing resources at all. These companies are already a step behind because they lack the resources needed to build the product value story and test messaging in their target markets. It also means having a smaller share of voice with their customers.

 

<-- Back to the News Page

<-- Back to the Cutting Edge Information home page