Tag Archives: insights in life sciences

How Primary Research Helps Companies Succeed?

By Angela Justamante, M.S., Consultant at Insights in Life Sciences (ilS).

Market Research is an organized effort to gather information about target markets or customers. It is a very important component of business strategy. Market Research is one of the key factors used in maintaining competitiveness over competitors, providing important information to identify and analyse the market need, market size and competition. Market Research techniques encompass both primary and secondary market research. 1

Whereas secondary research, also known as desk research, involves the summary, collation and/or synthesis of existing research, primary research involves the collection of data directly from the source of knowledge (physicians, patients, payers, Company representatives,…).

Primary research is generally conducted by third parties, in order to maintain as much objectivity as possible. Those providers should ideally be familiar with the Efpia code of practice (which recommends how organization should interact with healthcare professionals and patient organizations) . 3 Data collected through primary research is interpreted using statistical or analytical methods and techniques to gain insights and support decision making.

Primary market research can be made through qualitative techniques such as in-depth one to one interviews or quantitative techniques such as questionnaires. 2

The following case studies, allows to gain a better understanding of how primary research can support companies’ decision-making.

Case study: NIVEA deodorant “Pearl and Beauty”

Beiersdorf is a big German personal-care company based in Hamburg, Germany, that includes brands such as: NIVEA, Eucerin and Atrixo. One of the main reasons of Beiersdorf’s success is the in-depth market research they conduct (in a global context). The aim of this market research is to gather end user views, which provides insights that ultimately result in the development of new products suitable for a global market.

A clear picture of how market research has helped New Product Development (NPD) at Beiersdorf, is the case of a NIVEA Deodorant called Pearl and Beauty aimed at young women.

The objective of this primary market research was to understand the motivations for using deodorant amongst female consumers. The research involved small discussion groups of females, which helped researchers understand the beliefs and motivations of this group and revealed an interesting finding: apparently NIVEA lacked a specific product that addressed ‘underarm beauty’ for the female consumer.

As a result, this primary market research revealed an unexplored market potential for NIVEA Deodorant. And, in order to fulfil this market need, NIVEA successfully launched to the market a Deodorant called Pearl and Beauty 4

Insights in Life Science (ilS) has successfully conducted primary research studies for a variety of life sciences companies, including: big pharma, biotech, start-ups, Tech Transfer Offices,  or even for other consulting organizations

We share three case studies below (slightly modified for confidentiality purposes), which try to illustrate how primary research adds value to our Clients:

Case Study 1:

A start-up biotech company focused in the field of neurology and ready to initiate a Phase II Proof-of-Concept for one of its products, was interested in understanding Key Opinion Leader (KOL) and payer perception of that product (“Product X”). For that purpose, ilS selected the best potential neurologists and payers (across the top 5 EU countries and the USA), prepared an exhaustive interview guide and held in-depth phone interviews with those experts (ilS InterviewsSM)

Insights collected through this primary research allowed our Client to understand expert perception of its Target Product Profile (TPP), and potential Market Access barriers. Those first-hand insights allow the Company to: 1. Revisit the Product Development Plan in an early stage, 2. Be better prepared to negotiate with licensors, 3. Attract investor attention during a potential fund raising phase

Case Study 2:

The Office of Technology Transfer of a Nordic University developing a new treatment in the field of Ophthalmology (“Product Y”), was interested in understanding end user clinical practice, existing unmet clinical needs, and market potential for “Product Y”. For that purpose, ilS conducted a primary research (ilS SurveysSM) with top ophthalmologists across the USA and the top 5 EU countries. With the support of the ilS NetworkSM, ilS identified the best KOLs, prepared an exhaustive online survey and collected expert insights. ilS analyzed the compiled information and shared a report with the Company allowing them to: 1. Decide whether or not to continue further developing “Product Y”, 2. Understand the potential market size for a rare ophthalmologic condition

Case Study 3:

A Global Pharma Company in preparation for the market launch of “Product Z”, needed to gain insights from several qualified oncologists in regards to their decision-making process, their product perception and values. For this purpose, ilS organised an onsite Advisory Board with several oncologists in order to capture their insights and gain consensus (ilS KnowledgeSM). More specifically, ilS created a well-designed moderator guide based on the client provided information, conducted the advisory board, collected the expert insights, analyzed the compiled information and shared a report. The Advisory Board provided sufficient insights to develop an optimal local strategy that could facilitate a smoother launch for “Product Z”

Those three case studies, illustrate how primary research supports life sciences companies to gather key data directly from the target customers, and adds value in regards to: target product profiling, clinical trial design, early market access plan, pricing strategy, licensing strategy, fund raising,…, which allow organizations to become more efficient and accelerate new product launch, which in the end will benefit patient health, which is what really matters.

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REFERENCES

  1. McQuarrie, Edward (2005), The market research toolbox: a concise guide for beginners (2nd ed.), SAGE, ISBN 978-1-4129-1319-5
  2. Wikipedia (https://en.wikipedia.org/wiki/Secondary_research)
  3. Efpia Relationships & Codes: https://www.efpia.eu/relationships-codes/
  4. NIVEA- Case Study, International Market Research (http://bit.ly/2Dk8POh)
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Pricing and Reimbursement within the US Public Healthcare System – Part Two, Medicaid

photopin_oldmanautumn_smallby Emily Fielding

The legislative changes made under the Affordable Care Act are significant for Medicaid – the state program that provides health insurance for low-income individuals. In 2010, 16.5% of Americans had Medicaid coverage, but from 2014 it is being expanded to include every individual with incomes under 133% of the Federal Poverty Level who isn’t covered by Medicare. This removes the previous requirement for dependent children for eligibility. The Center for Medicare and Medicaid Services (CMS) is a federal body that monitors the Medicaid program, but states retain the right to choose to provide the program or not. Currently, all states have it. However, only 23 states and the district of Columbia will be participating in the Medicaid expansion, which a High Court Ruling deemed optional according to the constitution. Those states with Republican Governors are those that so far refuse to enact the legislation.

All states cover prescription drugs under Medicaid, though co-payments per prescription can vary between $0.50-$5.00, and there may be limits on the number of prescriptions a beneficiary can have filled each month/year. Furthermore, drug manufacturers must enter a rebate agreement with Medicaid in order to have their products covered. Details of how much is required for each drug can be found here. Under Obamacare, this rebate has risen from 15.1% to 23.1% of the average manufacturer price for innovator drugs, and is expanded to include Medicaid delivered by Managed Care Organizations.

This means not only is Medicaid expanding in terms of number of people covered, but the costs on pharma for each individual sale are rising too. Those listed as “preferred drugs” such as antiretrovirals, atypical antipsychotics, ARBs, statins, anti-platelets etc will be most affected. Pharma is prevented for offsetting this rebate rise with a price increase, as any price increases to offset will be offset themselves by an additional rebate. Currently, 600 drug manufacturers participate in this program, facilitating access to their medications for Americans on Medicaid. These companies will still benefit from the overall increase in sales expected from having more people covered under Medicare.

REFERENCES:

Sinclair, A et al (2010) Strategic Analysis – US Pharmaceutical Market Overview, Reference number: DMHC2621, Datamonitor

DeNavas-Walt, C, Proctor, BD and Smith, JC (2012) “Income, Poverty, and Health Insurance Coverage in the United States: 2011” U.S. Census Bureau, Current Population Reports, P60-243, U.S. Government Printing Office, Washington, DC

Schlosberg, C & Jerath, S (1999) Fact Sheet: Prescription Drug Coverage Under Medicare NHelp Available from: http://www.healthlaw.org/index.php?option=com_content&view=article&id=187%3Afact-sheet-prescription-drug-coverage-under-medicaid&catid=38&Itemid=192

Pricing and Reimbursement within the US Public Healthcare System – Part One, Medicare

photopin_oldmanautumn_smallby Emily Fielding

The US Health System has historically had a very strong emphasis on the private sector. Unlike in many other developed nations, Americans do not have a choice between public and private coverage – only those who are deemed incapable of obtaining private coverage may have public coverage. The Affordable Care Act increases the pool of individuals eligible for public coverage. This means more US residents will be in a position to utilize medical services following implementation in 2014. Continue reading Pricing and Reimbursement within the US Public Healthcare System – Part One, Medicare

USA Pharma Market Overview: Valuable Impacts of Reform

by Emily Fielding

photopin_chicagoskyline_smallThere was a time that the pharma industry in the USA was touted to be “recession-proof”. However in 2010, with the country recovering from The Great Recession and the industry facing 2011’s patent cliff, there could be no denying the healthcare system was in need of major reform. When the Affordable Care Act passed that year, it became clear that the drug industry actually had potential to benefit from the increase in government involvement. Continue reading USA Pharma Market Overview: Valuable Impacts of Reform

Preparing for Conditional Marketing Authorizations

banderasby Aina Pi

Companies developing medications that meet an urgent need, but lack financial incentive, are rewarded by the European Medicines Agency (EMA) with authorization to go to market earlier than with regular products. Conditional Marketing Authorizations are granted by the EMA for products intended for seriously debilitating diseases, life-threatening diseases and emergency situations. Continue reading Preparing for Conditional Marketing Authorizations