Building World-Class HEOR Teams

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This report guides companies in structuring health economics operations at the global and country levels. Its data and best practices will help country-level HEOR teams focus on working directly with payers while getting support from global groups. Data include HEOR management budget levels, HEOR teams structure and staffing metrics, HEOR activities and processes, KPIs and other factors. A focus on HEOR study management uncovers benchmarks for study costs, duration and necessary resources to build  successful HEOR teams.

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Report Details

Publication Date: March 2015
Pages: 169
Chapter:s 4
Metrics: 500+
Charts/Graphics: 118

Top Reasons to Buy This HEOR Teams Report

Balance short-term approval needs with long-term market access and payer needs: HEOR Teams face challenges in communicating the importance of health economics and outcomes research prior to launch, and resource prioritization is an obstacle. Botched launches in major markets can ripple through the entire market access budget. Building World-Class HEOR Teams examines how to structure and resource Health Economics & Outcomes Research groups effectively. Dedicated HEOR Teams provide the advantage of coordinating both prospective and retrospective health economics and outcomes research activities. The study also includes case studies of real-company HEOR organizational structures; these examples also show how to most effectively manage vendors for HEOR activities. Metrics include total HEOR budgets, sources of funding for HEOR activities, and funding allocation between compounds in development and marketed brands.

Use the right HEOR studies to build understanding of what is driving patient needs — and to address payer requirements: Getting an early start on developing the health economics plan for a product is crucial in meeting payer needs. Identifying comparators and understanding the competitive landscape at launch can be difficult in early phases — but groups are still able to conduct research that lays the groundwork for a product’s future success on the market. Once launch approaches and health economics and outcomes research involvement reaches its peak, companies should know how many studies are required to support a product effectively, as well as the potential budgetary pressures that come with addressing payer concerns. This report guides companies in making critical decisions and planning surrounding HEOR studies and their costs. Benchmarks include how many health economics studies are conducted and their cost and duration.

Plan to increase health outcomes liaison (HOL) headcounts as payers demand more detailed information: The study examines HEOR team staffing as well as the activities and strategies that impact their operations. Research highlights staffing numbers across central global groups and affiliate-level health economics and outcomes research teams as well as compensation structure for individual team positions. Interviewed executives explain the rising need, and increased role, for health outcomes liaisons (HOLs) to discuss pharmacoeconomic data with payers as part of a compelling value story. Other data demonstrate the core activities driving strategy across HEOR groups as well as perceived impact of health economics and outcomes data for specific payers’ formulary decisions. Altogether, the information in this report helps companies build skilled, focused HEOR Teams capable of adjusting to payer needs throughout the product lifecycle.

You may also be interested in Cutting Edge Information’s market access library or our individual market access research reports.

Excerpt from Building World Class HEOR Teams

When it comes to meeting payer needs from a health economics perspective,
pharmaceutical companies are under increasing pressure to provide a full value story to payers that answers outcomes, pharmacoeconomic and even budgetary questions. Stakeholders, including payers, physicians, and even patients in many markets, now expect to see a pharmacoeconomic case for the use of a new product. These demands place a growing burden on the health economics groups responsible for generating these data. They also present a challenge in communicating these findings to payers successfully.

This report serves as a guide for structuring health economics operations at the global and country levels. Its data and best practices will help teams on the ground focus on working with directly with payers while being effectively supported by global groups.

Table of Contents

8             Executive Summary

9             Managing HEOR Activities: Providing Pharmacoeconomic Answers to Payer Questions

20           Fortifying HEOR Impact on Product Support through Structure and Spending

22           HEOR Group Structures and Oversight

36           Ensuring Adequate HEOR Spending per Product

65           Trends: Using New Data Sources and Technology to Improve HEOR Functions

67           Staffing HEOR Teams for Strategic Operations

69           Staffing and Compensating Effective HEOR Teams

87           Prioritizing Health Economics Responsibilities to Impact Payers’ Pricing and Formulary Decisions

108        Supporting Products with Early Planning and Targeted HEOR Studies

110        Beginning HEOR Work Early in Product Development

115        Phase-by-Phase HEOR Spending Benchmarks

120        HEOR Study Benchmarks: Cost, Number Conducted, Duration

145        Profiling HEOR Group Structure, Spending and Activities

CHARTS AND GRAPHICS

8             Executive Summary

9             Managing HEOR Activities: Providing Pharmacoeconomic Answers to Payer Questions

10           Figure E.1: Structure of HEOR Function: All Companies

12           Figure E.2: Average Number of FTEs on HEOR Teams: Top 10 and Top 50 Companies

12           Figure E.3: Average Number of FTEs on HEOR Teams: Small and Medical Device Companies

14           Figure E.4: Ratings of Perceived HEOR Impact on Payers’ Pricing Decisions: All Companies

20           Fortifying HEOR Impact on Product Support through Structure and Spending

21           Figure 1.0: Putting HEOR Under Scientific or Commercial Oversight

22           HEOR Group Structures and Oversight

23           Figure 1.1: HEOR Structure and Process at US Country-Level Affiliate: Company A

24           Figure 1.2: HEOR Structure and Process at EU Country-Level Affiliate: Company B

25           Figure 1.3: HEOR Structure and Process at Small Global-Level HEOR Group: Company C

27           Figure 1.4: Structure of HEOR Function: All Companies

27           Figure 1.5: Structure of HEOR Function, by Group Type

28           Figure 1.6: Structure of HEOR Function, by Region

29           Figure 1.7: Oversight of HEOR Activities: All Companies

30           Figure 1.8: Oversight of HEOR Activities, by Group Type

31           Figure 1.9: Oversight of HEOR Activities, by Region

32           Figure 1.10: Oversight of HEOR Activities: Medical Device Groups

33           Figure 1.11: Level of Executive Managing HEOR Activities: Central Global Group

34           Figure 1.12: Level of Executive Managing HEOR Activities: Country-Level Affiliates in US and EU/  Canada

34           Figure 1.13: Level of Executive Managing HEOR Activities: Country-Level Affiliates in Emerging Markets

35           Figure 1.14: Level of Executive Managing HEOR Activities: Medical Device Groups

36           Ensuring Adequate HEOR Spending per Product

37           Figure 1.15: Sources of Funding for HEOR Activities: Central Global Groups

37           Figure 1.16: Sources of Funding for HEOR Activities: Top 10 Country-Level Affiliate Groups

38           Figure 1.17: Sources of Funding for HEOR Activities: Top 50 Country-Level Affiliate Groups

39           Figure 1.18: Prototypical Funding Sources for Central Global HEOR Group

40           Figure 1.19: Range of Funding Sources for Central Global HEOR Groups

41           Figure 1.20: Prototypical Funding Sources for Top 10 Country-Level Affiliate HEOR Groups

41           Figure 1.21: Prototypical Funding Sources for Top 50 Country-Level Affiliate HEOR Groups

42           Figure 1.22: Range of Funding Sources for Country-Level Affiliate HEOR Groups

43           Figure 1.23: Prototypical Funding Sources for Medical Device HEOR Groups

44           Figure 1.24: HEOR Spending Among Central Global Groups, by Company (2013–2015)

45           Figure 1.25: HEOR Spending on Compounds and Brands Among Central Global Groups, by Company

46           Figure 1.26: HEOR Spending Among Top 10 Country-Level Affiliate Groups (2013–2015)

46           Figure 1.27: HEOR Spending on Compounds and Brands Among Top 10 Country-Level Affiliate Groups

47           Figure 1.28: HEOR Spending Among Top 50 Country-Level Affiliate Groups (2013–2015)

48           Figure 1.29: HEOR Spending on Compounds and Brands Among Top 50 Country-Level Affiliate Groups

49           Figure 1.30: HEOR Spending Among Medical Device Manufacturers, by Company (2013–2015)

50           Figure 1.31: Average Percentage Change in HEOR Budget, by Group Type

51           Figure 1.32: Average Percentage Change in HEOR Budget, by Group Region

53           Figure 1.33: Percentage of Companies Measuring HEOR Performance Indicators and ROI: All Companies

53           Figure 1.34: Types of Performance Indicators Tracked by HEOR Groups: All Companies

54           Figure 1.35: Comparing Product Portfolio with HEOR Spending by Product Type Among Central Global Groups, by Company

55           Figure 1.36: Comparing Product Portfolio with HEOR Spending by Product Type Among Top 10 Country-Level Affiliates, by Company

55           Figure 1.37: Comparing Product Portfolio with HEOR Spending by Product Type Among Top 50 Country-Level Affiliates, by Company

56           Figure 1.38: Annual HEOR Spending per Compound and Brand: US Groups

57           Figure 1.39: Annual HEOR Spending per Compound and Brand: EU Groups

58           Figure 1.40: Annual HEOR Spending per Medical Device, by Company

59           Figure 1.41: Prioritization of HEOR Spending Among Central Global Groups

60           Figure 1.42: Prioritization of HEOR Spending Among Country-Level Affiliate Groups

61           Figure 1.43: Average Percentage of Budget Spent on Primary Activities Among Central Global HEOR Groups

62           Figure 1.44: Average Percentage of Budget Spent on Primary HEOR Activities Among Top 10 Country-Level Affiliates

63           Figure 1.45: Average Percentage of Budget Spent on Primary HEOR Activities Among Top 50 Country-Level Affiliates

63           Figure 1.46: Average Percentage of Budget Spent on Primary HEOR Activities Among US and EU/Canada Country-Level Affiliates

65           Trends: Using New Data Sources and Technology to Improve HEOR Functions

65           Figure 1.47: Challenges Facing HEOR Groups: All Companies

67           Staffing HEOR Teams for Strategic Operations

68           Figure 2.0: Assembling Appropriate Staffing for HEOR Activities

69           Staffing and Compensating Effective HEOR Teams

70           Figure 2.1: Number of FTEs on HEOR Team, by Group Type and Region

71           Figure 2.2: Number of FTEs on HEOR Team, by Company: Top 10 and Top 50 Central Global Groups

72           Figure 2.3: Number of FTEs on HEOR Team, by Company: Small Company Central Global Groups

74           Figure 2.4: Number of FTEs on HEOR Team, by Company: Top 10 and Top 50 US Affiliate Groups

74           Figure 2.5: Number of FTEs on HEOR Team, by Company: Top 10 and Top 50 EU and Canada Affiliate Groups

75           Figure 2.6: Number of FTEs on HEOR Team, by Company: Top 10 and Top 50 Emerging Markets Affiliate Groups

77           Figure 2.7: Number of FTEs on HEOR Team, by Company: Medical Device Central Global Groups

78           Figure 2.8: Number of FTEs on HEOR Team, by Company: Medical Device Country-Level Affiliate Groups

81           Figure 2.9: Average Salary for HEOR Team, by Position: Central Global Groups

83           Figure 2.10: Average Salary for HEOR Team, by Position: Top 10 Country-Level Affiliate Groups

83           Figure 2.11: Average Salary for HEOR Team, by Position: Top 50 Country-Level Affiliate Groups

84           Figure 2.12: Average Salary for HEOR Team, by Position: US-Based Groups

85           Figure 2.13: Average Salary for HEOR Team, by Position: EU- and Canada-Based Groups

86           Figure 2.14: Average Salary for HEOR Team, by Position: Medical Device Groups

87           Prioritizing Health Economics Responsibilities to Impact Payers’ Pricing and Formulary Decisions

93           Figure 2.15 Prioritization of HEOR Activities by Central Global Groups

93           Figure 2.16: Percentage of Time Spent on Major HEOR Activities: Central Global Groups

95           Figure 2.17: Prioritization of HEOR Activities by Top 10 Country-Level Affiliate Groups

96           Figure 2.18: Percentage of Time Spent on Major HEOR Activities: Top 10 Country-Level Affiliate Groups

98           Figure 2.19: Prioritization of HEOR Activities by Top 50 Country-Level Affiliate Groups

98           Figure 2.20: Percentage of Time Spent on Major HEOR Activities: Top 50 Country-Level Affiliate Groups

99           Figure 2.21: Percentage of Time Spent on Major HEOR Activities: US and EU Country-Level Affiliate Groups

101        Figure 2.22: Prioritization of HEOR Activities by Medical Device Groups

101        Figure 2.23: Percentage of Time Spent on Major HEOR Activities: Medical Device Groups

103        Figure 2.24: Ratings of Perceived HEOR Impact on Payers’ Pricing Decisions: All Companies

103        Figure 2.25: Ratings of Perceived HEOR Impact on Payers’ Pricing Decisions, by Group Type

104        Figure 2.26: Ratings of Perceived HEOR Impact on Payers’ Formulary Decisions: All Companies

105        Figure 2.27: Ratings of Perceived HEOR Impact on Payers’ Formulary Decisions, by Group Type

108        Supporting Products with Early Planning and Targeted HEOR Studies

109        Figure 3.0: Monitoring Benchmarks for Key HEOR Studies

110        Figure 3.1: Start of HEOR Involvement for Central Global Teams

110        Beginning HEOR Work Early in Product Development

111         Figure 3.2: Start of HEOR Involvement for Country-Level Affiliate Teams

115        Phase-by-Phase HEOR Spending Benchmarks

115         Figure 3.3: Minimum/Maximum HEOR Expenditure per Product During Phase 1, by Company

116         Figure 3.4: Minimum/Maximum HEOR Expenditure per Product During Phase 2, by Company

117         Figure 3.5: Minimum/Maximum HEOR Expenditure per Product During Phase 3, by Company

118         Figure 3.6: Minimum/Maximum HEOR Expenditure per Product During Submission and Registration, by Company

118         Figure 3.7: Minimum/Maximum HEOR Expenditure per Product During Launch, by Company

119         Figure 3.8: Minimum/Maximum HEOR Expenditure per Product During Phase 4, by Company

120        HEOR Study Benchmarks: Cost, Number Conducted, Duration

122         Figure 3.9: Average Minimum/Maximum Number of HEOR Studies Conducted by Central Global Groups in Support of a Single Product, by Study Type

123         Figure 3.10: Average Minimum/Maximum Number of HEOR Studies Conducted by US Groups in Support of a Single Product, by Study Type

123         Figure 3.11: Average Minimum/Maximum Number of HEOR Studies Conducted by Country-Level Affiliates in Support of a Single Product, by Study Type

124        Figure 3.12: Average Costs of HEOR Studies, by Group Type and Study Type

125        Figure 3.13: Average Costs of HEOR Studies, by Group Region and Study Type

126        Figure 3.14: Range of HEOR Study Duration Among Central Global Groups, by Study Type

126         Figure 3.15: Range of HEOR Study Duration Among Country-Level Affiliate Groups, by Study Type

127        Figure 3.16: Average Cost of HEOR Studies for Central Global Groups: Cost-Effectiveness Studies

128         Figure 3.17: Average Cost of HEOR Studies for Country-Level Affiliate Groups: Cost-Effectiveness Studies

128         Figure 3.18: Minimum/Maximum Number of Cost-Effectiveness Studies Conducted by HEOR Groups in Support of a Single Product, by Company

129        Figure 3.19: Duration of Cost-Effectiveness Studies Among Central Global Groups, by Company

129        Figure 3.20: Duration of Cost-Effectiveness Studies Among Country-Level Affiliate Groups, by Company

131        Figure 3.21: Average Cost of HEOR Studies for Central Global Groups: Budget Impact Studies

131         Figure 3.22: Average Cost of HEOR Studies for Country-Level Affiliate Groups: Budget Impact Studies

132         Figure 3.23: Minimum/Maximum Number of Budget Impact Studies Conducted by HEOR Groups in Support of a Single Product, by Company

132        Figure 3.24: Duration of Budget Impact Studies Among Central Global Groups, by Company

133         Figure 3.25: Duration of Budget Impact Studies Among Country-Level Affiliate Groups, by Company

134        Figure 3.26: Average Cost of HEOR Studies for Central Global Groups: Cost-Minimization Studies

135         Figure 3.27: Average Cost of HEOR Studies for Country-Level Affiliate Groups: Cost-Minimization Studies

135         Figure 3.28: Minimum/Maximum Number of Cost-Minimization Studies Conducted by HEOR Groups in Support of a Single Product, by Company

136        Figure 3.29: Duration of Cost-Minimization Studies, by Company

137        Figure 3.30: Average Cost of HEOR Studies for Central Global Groups: Cost-Utility Studies

137         Figure 3.31: Average Cost of HEOR Studies for Country-Level Affiliate Groups: Cost-Utility Studies

138         Figure 3.32: Minimum/Maximum Number of Cost-Utility Studies Conducted by HEOR Groups in Support of a Single Product, by Company

138        Figure 3.33: Duration of Cost-Utility Studies, by Company

139        Figure 3.34: Average Cost of HEOR Studies for Central Global Groups: Comparative Effectiveness Studies

140         Figure 3.35: Average Cost of HEOR Studies for Country-Level Affiliate Groups: Comparative Effectiveness Studies

140         Figure 3.36: Minimum/Maximum Number of Comparative Effectiveness Studies Conducted by HEOR Groups in Support of a Single Product, by Company

141        Figure 3.37: Duration of Comparative Effectiveness Studies Among Central Global Groups, by Company

141         Figure 3.38: Duration of Comparative Effectiveness Studies Among Country-Level Affiliate Groups, by Company

143        Figure 3.39: Average HEOR Spending per Medical Device, by Company

143        Figure 3.40: Range of HEOR Study Costs per Month Among Medical Device Groups, by Study Type

144        Figure 3.41: Range of HEOR Study Duration Among Medical Device Groups, by Study Type

145        Profiling HEOR Group Structure, Spending and Activities

146        Figure 4.1: Company 7 Structure and Spending

147        Figure 4.2: Company 7 HEOR Spending

148         Figure 4.3: Company 7 Staffing and Activities

149        Figure 4.4: Company 7 Health Economics Studies and Expenditures

150        Figure 4.5: Company 13 Structure and Spending

151        Figure 4.6: Company 13 HEOR Spending

152         Figure 4.7: Company 13 Staffing and Activities

153        Figure 4.8: Company 13 Health Economics Studies and Expenditures

154        Figure 4.9: Company 14 Structure and Spending

155        Figure 4.10: Company 14 HEOR Spending

156         Figure 4.11: Company 14 Staffing and Activities

157        Figure 4.12: Company 14 Health Economics Studies and Expenditures

158        Figure 4.13: Company 23 Structure and Spending

159        Figure 4.14: Company 23 HEOR Spending

160         Figure 4.15: Company 23 Staffing and Activities

161        Figure 4.16: Company 23 Health Economics Studies and Expenditures

162        Figure 4.17: Company 29 Structure and Spending

163        Figure 4.18: Company 29 HEOR Spending

164         Figure 4.19: Company 29 Staffing and Activities

165        Figure 4.20: Company 29 Health Economics Studies and Expenditures

166        Figure 4.21: Company 21 Structure and Spending

167        Figure 4.22: Company 21 HEOR Spending

168         Figure 4.23: Company 21 Staffing and Activities

169        Figure 4.24: Company 21 Health Economics Studies and Expenditures