US Government Drug Reimbursement is Barometer for Wider Market Success
In interviews conducted for recent research on these US government drug reimbursement systems, specifically Medicare and Medicaid, the message was strong that government formularies are a precursor to broader market success. Failing to achieve placement on preferred drug lists (PDLs) should prompt a strong examination of the case being made to government payers to make sure that the product is well supported by clinical and outcomes data as well as a powerful cost argument.Making sure that a new product has a successful US launch is a top priority for many groups. A botched or uncoordinated launch in such a large market can have a ripple effect on strategic planning throughout the organization. There are too many individual factors that combine to influence the success of a US product launch. However, the ability of a product to obtain favorable formulary position within US government drug reimbursement systems provides a useful barometer for the product.
Using US government drug reimbursement as an early benchmark also allows groups like health economics and outcomes research (HEOR) teams to assess the effectiveness of their data. Many of these groups struggle to find performance metrics that work in real-time or close to real-time that capture the success of the group. Since US government reimbursement is often early in the product launch sequence it provides an early indication of how to direct future research for that product as well as how to adjust research for future drugs.
To learn more about the research findings in Cutting Edge Information’s US Government Drug Reimbursement report, download the summary here.