Pharma Market Research Report Dec 2013

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The world's only pharma market research publication, from the publisher of: Research Business Report Research Conference Report Research Department Report www.rflonline.com Pharma Market Research December 2013 Report Follow the RBDRChannel on YouTube and @RBDRfromRFL daily for the latest MR news Welcome to our 9th Annual Predictions Issue Bob Lederer, PMR 2 Editor and Publisher This year-ending PMR 2 has the great con- tributors we expect and a wider array of phar- maceutical, biotech and healthcare MR pre- dictions and comments than ever before. Thank you, all! There’s no question that this segment of the MR industry clearly sees many potential tasks before them. Based on what appears in these eight pages, there is no doubt that MR departments inside biopharma and healthcare operations will have all the tools and techniques needed to succeed. Brian Attig, Ph.D., Principal HealthCare.insight Is there something to be learned from the rocky rollout of the Healthcare.gov website and continuing issues with the Affordable Care Act (ACA) that could be instructive for us in healthcare MR? And beyond the IT implementation issues, does the policy behind the ACA point to any new opportuni- ties for healthcare marketing research practitioners? I think so. While the Healthcare.gov case is an extreme (albeit high-profile) example, this story offers an instructive reminder for our industry about what can go wrong with formalized procurement. It shows problems if processes are too rigidly adhered to, if there is insuf- ficient continuing oversight of vendors, not to men- tion examples of vendor management by individuals who lack the full experience to adequately assess vendor offerings. Competition run by vendor pro- curement can be a good thing when well applied. One upshot of the ACA has been the creation of Accountable Care Organizations (ACOs) – networks of healthcare providers and hospitals organized toward a goal of better coordinated patient care. In theory, the new ACOs should result in better aggregate patient outcomes as well as reduced overall costs. It will become increasingly incumbent on manu- facturers to catalyze cross-functional teams (com- posed of R&D, Commercial, Payer Access/Pricing, Regulatory, Medical Affairs, HEOC and Risk Assessment) to push critical consideration of a pipeline product’s “value proposition” earlier in the developmental process – back to Phase II when strategic actions can still be planned (like designing outcomes trials), rather than the traditional hand- off from R&D to Commercial at Phase III. There are a number of consultative approaches to help manu- facturers facilitate these kinds of internal discus- sions (Translational Medicine is one). Important for us MR types to understand is that our work can play a contributory role to these strategy discussions as they require a blend of primary and secondary research among other inputs. The challenge to us in the MR industry is to find ways to step to the fore to help affect these discussions because it will help promote the long-term relevance of the marketing research business function. Adam Bianchi, Chief Operating Officer Cutting Edge Information, Inc. Cross-Functional Integration : Market research and related functions have faced as much change as any other corporate group in the last 10 years. That rapid evolution will continue as the industry continues to adjust to rapidly changing marketplace conditions. In 2014, we expect to see almost every department seek greater decision-making support. Some will do so formally with budgetary support. Others will ask to be “part of the conversation” in a less formal way. Regardless, these internal stakehold-

Transcript of Pharma Market Research Report Dec 2013

Page 1: Pharma Market Research Report Dec 2013

The world's only pharma market researchpublication, from the publisher of:Research Business ReportResearch Conference ReportResearch Department Reportwww.rflonline.com

Pharma Market ResearchDecember 2013 Report

Follow the RBDRChannel on YouTube and @RBDRfromRFL daily for the latest MR news

Welcome to our 9th Annual Predictions Issue

Bob Lederer, PMR2 Editor and Publisher

This year-ending PMR2 has the great con-tributors we expect and a wider array of phar-maceutical, biotech and healthcare MR pre-dictions and comments than ever before.Thank you, all!

There’s no question that this segment of the MRindustry clearly sees many potential tasks beforethem. Based on what appears in these eight pages,there is no doubt that MR departments insidebiopharma and healthcare operations will have allthe tools and techniques needed to succeed.

Brian Attig, Ph.D.,Principal

HealthCare.insight

Is there something to be learned from therocky rollout of the Healthcare.gov websiteand continuing issues with the AffordableCare Act (ACA) that could be instructive

for us in healthcare MR? And beyond the IT implementation issues, does the

policy behind the ACA point to any new opportuni-ties for healthcare marketing research practitioners?I think so.While the Healthcare.gov case is an extreme (albeit

high-profile) example, this story offers an instructivereminder for our industry about what can go wrongwith formalized procurement. It shows problems ifprocesses are too rigidly adhered to, if there is insuf-ficient continuing oversight of vendors, not to men-tion examples of vendor management by individualswho lack the full experience to adequately assessvendor offerings. Competition run by vendor pro-curement can be a good thing when well applied.One upshot of the ACA has been the creation of

Accountable Care Organizations (ACOs) – networks

of healthcare providers and hospitals organizedtoward a goal of better coordinated patient care. Intheory, the new ACOs should result in better aggregatepatient outcomes as well as reduced overall costs. It will become increasingly incumbent on manu-

facturers to catalyze cross-functional teams (com-posed of R&D, Commercial, Payer Access/Pricing,Regulatory, Medical Affairs, HEOC and RiskAssessment) to push critical consideration of apipeline product’s “value proposition” earlier in thedevelopmental process – back to Phase II whenstrategic actions can still be planned (like designingoutcomes trials), rather than the traditional hand-off from R&D to Commercial at Phase III. There area number of consultative approaches to help manu-facturers facilitate these kinds of internal discus-sions (Translational Medicine is one). Important for us MR types to understand is that our

work can play a contributory role to these strategydiscussions as they require a blend of primary andsecondary research among other inputs. The challengeto us in the MR industry is to find ways to step tothe fore to help affect these discussions because itwill help promote the long-term relevance of themarketing research business function.

Adam Bianchi, Chief Operating Officer

Cutting Edge Information, Inc.

Cross-Functional Integration: Marketresearch and related functions have facedas much change as any other corporategroup in the last 10 years. That rapidevolution will continue as the industry continues toadjust to rapidly changing marketplace conditions.In 2014, we expect to see almost every departmentseek greater decision-making support. Some willdo so formally with budgetary support. Otherswill ask to be “part of the conversation” in a lessformal way. Regardless, these internal stakehold-

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P H A R M A M A R K E T R E S E A R C H R E P O R T P H A R M A M A R K E T R E S E A R C H R E P O R T

ers can help market research teams communicatetheir value to the organization.Big Data in Support of Commercial Teams: The

buzzword of the year is starting to pay off. BigData has become a powerful tool for payer liaisonteams to communicate clinical effectiveness andhealth outcomes. In 2014, new tools and applicationsdesigned to meet core marketing goals will providedeeper insights into patient adherence, physicianpreferences, competitive positioning and campaigneffectiveness. Expect Big Data to provide a moreproactive view of potential opportunities andthreats in addition to analyzing the challenges youalready know about.Comprehensive Product Lifecycle Support: Product and

portfolio strategies have become more complex,often reflecting the new “niche blockbuster” paradigm.Look for market research’s decision supportinsights to be more formally incorporated acrossproduct development, commercialization and life-cycle management. These additions will include awider set of activities, from analysis of unmetmedical needs to key opinion leader identificationto regional marketing differentiation to revenuedefense to the chessboard of portfolio planning,and many steps in between.

Vincent DeRobertis, Senior Vice President, Global Healthcare

Research Now

I foresee a shift where healthcare firms lever-age assets to build wider and deeper relation-ships with patients and HC professionals. I also

think mobile technology will play an increasing role inhow constituencies are engaged in 2014 and beyond.Healthcare companies want to use their existing

customer databases along with panels, social media andother behavioral data to gain a better understandingof the voice of the customer and the voice of themarket. Mobile and behavioral capabilities will takeinsights to a new level. Furthermore, I see new methodologies (i.e., mobile

research) taking the lead in patient journeys, ethnogra-phies and diaries. The convenience of the mobile devicemakes it so much easier to engage with consumers.Mobile is one of the key drivers in the future ofmarket research; these devices are unique to an indi-vidual, provide additional data without user involve-ment and are with us 24/7.

Longer term engagement will be possible – and thehealthcare market researcher will get more consistentdata and develop a closer tie between the patient anddrug, device, or other medical-related service.

Justin Edge, Managing Director, North American Health

GfK

Each year we pump out prognostications,but this year feels different. Change has arrived and it has settled in

for a nice long stay. Industry veteransreminisce wistfully about the good old times, yet weind ourselves in the middle of an analytics anddata revolution. This should be a golden age for MR, as long as

we can re-invent ourselves.• It’s not (just) about statistical techniques, it’s about

storytelling and guiding smart management decisions.• We need to get out and learn from other industries.

Believe me, financial services, CPG and high techcan teach health marketers a thing or two aboutstakeholder engagement, white space innovationand changing distribution models. • We all know how technology has changed what

we do and how we do it. But there’s more to bedone. Mobile measurement, passive metering anddigital ethnographies are powerful in themselves,but even more so when twinned with traditionalapproaches. Imagine amping up patient journeyswith passive observation of online behavior. • Let’s look into integrating data streams instead

of an all-out embrace of surveys. Embrace “BiggishData”, even if you’re a little perplexed by Big Data.Exploit behavioral, HEOR, media consumptionand survey data for consumers and professionals.Stack it up, link it together and spot the patterns.• Solve tomorrow’s problems, not those of yesteryear.

MDD manufacturers and bio-pharmacos are increas-ingly focused on market access, CRM, user experienceand spurring growth in a digital “wild west.”• Solve problems in tomorrow’s hot markets. It’s

time to get beyond our traditional US+Big 5 EUmentality. BRICS and MISTs are post-emergingmarkets; in fact, some are rapidly maturing.• Excellence still matters, but it’s defined differently.

Delivering great insights in a compelling way is stillpretty important, but excellence also manifests inhow we manage preferred supplier relationships,how we comply with AE monitoring, how we trainour people and how we treat each other.

Sherry Fox, President - North America

The Planning Shop International

As predicted last year, with the contin-ued downsizing and re-organization bypharmaceutical companies, there is anever-growing need for partnershipamong market research agencies so that they candeliver added-value. Those agencies who can identify and implement

true synergies for a more robust client offeringwill see their businesses grow in the future. Andthis does not always mean reduced costs; clientsare also looking for more strategic insights orways to combine objectives so that a larger moreexpensive piece of research occurs, versus a seriesof small projects that will ultimately cost more.The trend towards mobile technology means that

researchers must keep abreast not only of newdevelopments in phone apps, iPad and websiteusability testing and digital technology in general,but also of the specific applications for each-everything from on-site conference research toutilization of eye-tracking and biometrics for web-site testing.Finally, corporate market researchers will need to

find ways to make themselves more valuable, notonly through pursuing partnership strategies withagencies, but also keeping up with new technologies.More specifically, researchers on the client sideshould be looking to their agency partners forimportant sales and customer service skills that willhelp client researchers to more proactively andeffectively service their internal customers(notably brand teams). We believe the key will be expanding their ability

to provide true strategic insights and consultancyin order to develop successful brands.

Lisa Fox, Vice PresidentAdelphi Research

The U.S. healthcare system, as we havetraditionally known it, no longer exists.From healthcare delivery to pharmaceuti-cals to reimbursement, the environmentcontinues to change – rapidly – with afuture that remains largely in flux.

Clearly, much of the change we are witnessing isexceptionally positive. No one can debate the valueof having new and effective therapies to treat onceintractable conditions. And the recognition thatcoordinated, quality focused care is not an option buta necessity, is long overdue. A key obstacle to thisevolution, however, is that the change is outpacingthe industry’s ability to harness it. Even for the insured, the expense associated with

many lifesaving therapies remains too much to bear.And a new coverage gap is emerging as millions ofAmerica’s poorest citizens, intended recipients via aplanned Medicaid expansion, are neither eligible forcoverage nor premium subsidies because their statesrejected the tenets of expansion under PPACA.As pharmaceutical manufacturers reside at the center

of this semi-controlled chaos, it would seem thatthey are tasked with the impossible in order to thrivein this new environment, not only riding the wave butsomehow, shaping it. Pharma will be well served toembrace these evolving stakeholders, targeting notjust the individual physician prescriber but thehealth system of which he or she is a part.

Incorporate Payor Perspectives Earlier

More evolved pharmacos will incorporate payorperspectives far earlier in the development process toensure that what is considered clinically meaningfulis aligned with payor perspectives of value. They willalso recognize that emerging payors participating in thehealthcare exchanges will further serve to fragmentan already heterogeneous system.Pharmaceutical-sponsored value-adds may see an

evolution from patient assistance programs (whichpayors and health professionals often deem eitherunnecessary or ineffective) to those that focus oninnovative ways to bring the newly insured into thehealthcare continuum. The new rules of engagementfor pharma, quite simply, may be to discard many ofthe old rules and forge onward.Pharmaceutical market researchers are charged with

the daunting task of foreseeing and understandingthese changes, as well as shifting many of the paradigms

under which we have operated for so many years.Physician sample composition will change, with theincreasing influence of health systems on an individualpractitioner’s decision making. Institutional segments,such as hospitals and clinics, will warrant re-definitionbased on the new parameters.The inclusion of stakeholders, such as payors, will

shift from a ‘nice to have’ to a necessity throughout themarket research continuum. Classic methodologies,such as chart pulls, will eventually become obsoleteonce the true data power of EMR is realized.

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Kendall Gay, Vice President ofHealthcare, Qualitative Team Leader

MarketVision Research

A key component of the PatientProtection and Affordable Care Act(PPACA) is electronic medical records(Electronic Health Records, or EHR).

Unfortunately, I'm not convinced that EHRs arepaying off or will do so for some time. This important issue alone can and will revolutionize

and improve healthcare overall. However, since EHRis more transactional and more tactical, it has been lessnoticed than the philosophical, political and economicdebates surrounding "affordable care."There were and are significant economic incentives

for medical practices to adopt EHR – some wouldsay greenmail - however, they require businessprocess knowledge and computer systems savvythat many practices simply don’t have. Accordingto “The Physician's Foundation 2012 Survey ofAmerica's Physicians: Practice Patterns andPerspectives,” just over 50% of physicians run prac-tices with 1 to 5 people. These small businessesoften lack a dedicated business manager and formalmanagement structure necessary to handle the taskof establishing EHR within the practice. The survey shows over 60% of the 13,575 respon-

dents (overall margin of error of 0.998%, standarddeviation of 0.04%, confidence interval of 99%) saythey would retire now if they had the means. That is ahugely telling prognostication about the Americanhealthcare system, and when we think about thesetwo factors we can see it hobbles the promise of EHR. So, the incentives and ultimately the benefits of EHR

are not being fully realized by the healthcare systembecause the means by which “big” healthcare datawould be created is struggling to get off the ground.Further compounding the logistical challenges is

reluctance to participate in EHR. According to thePhysician's Foundation survey, over 47% of doctorshave significant concerns that EHR poses a risk topatient privacy. This indicates a fundamental inertiatowards EHR, an organic challenge that furtherlessens the promise of Big Data.The next challenge with the “Big Data” inherent

in EHR is access. In talking with a colleague, TimO'Rourke of Healogix, the challenge we face in primarymarket research is that “to do Big Data, you needBig Data. The analytics are the easy part.” Timpoints out an issue we all need to be thinkingabout, from industry to government. My final

point regarding access is a question: What entitywill decide and will regulate who gets access andwho does not?Another barrier is that the right mix of incentives

and benefits have not been offered to small medicalpractices to induce them to comply with EHR. Whilethe Medicare and Medicaid incentive programs offereligible individual practitioners, eligible hospitals andcritical access hospitals (CAHs) $44,000 (Medicare)and $63,750 (Medicaid), these payments are metedout over 5 years and 6 years, respectively. That doesnot come close to covering the entirety of costsrequired to migrate paper records to EHR. Beyond EHR software, there are numerous ancillary

costs (e.g., staff time, consultant time, integration intoexisting internal and external information systems,network build-out and equipment, additional com-puter equipment requirements, data storage andsecurity requirements, initial and ongoing train-ing, service contracts and more). Again, these monies are available to individual

practitioners and just over 50% of practices are 1-5people. Who in these small practices will accountfor, manage and administrate the monies for allparticipating providers? What happens to the EHRdata from HCPs within the practices who don’taccept Medicare or Medicaid patients?Now, compound this economic issue with the

increasing migration of healthcare providers(HCPs) away from providing services to Medicareand Medicaid patients. We can see another "BigData" gap emerging. How do we capture EHR datafrom those HCPs who decline to participate inMedicare and/or Medicaid? Beyond simple demo-graphics, how do we compare and contrast thesedata sets to drive business?One thing I am less worried about is data security.

There are sufficient security and encryption protocolsto protect the data, though certainly new threatsare always emerging. And, while there is somepotential value to stealing such data, there is notnearly the economic incentive that there is in stealingbank and credit card data.  All of this may sound as if I'm pessimistic about

EHR, but you would be wrong. EHR is long overdue.The issue is that EHR as a sociopolitical initiativehas been foisted upon an industry without goodconsideration of all practical, logical and economicimplications.Epidemiologically, EHR offers great value-add in

more accurate, timely, efficient and consistentdelivery of healthcare in more effective ways. Weshould aspire to that as a society.

Todd Grossman, Managing DirectorPrecise Media U.S

If I have to pick one key prediction forthe next year it would be that more peoplewill look online for health informationand seek to connect with others like them.

The quality of content, growth in popularity ofonline patient communities and improved accessthrough the use of mobile will enable patients andcaregivers to access the information they need,when they want and where they want.

into much greater consideration the factthat, while physicians still write thescript, the patient is now much moreknowledgeable and educated about theirdisease and wants to take greater controlof their treatment decisions. This is not a bad thing and that means

that the pharma industry is now taking amuch greater interest in learning about and hearingthe voice of the ultimate customer. The economic downturn in the global economy

and the aging population has put pressure on thehealthcare industry to demonstrate greater valuefor money. Pharmaceutical companies areresponding by seeking to add value with the creationof outcomes-based models such as Pfizer’s “PillPlus” initiative. Technology has helped pharma to engage with

and support patients over time, with the clearbenefit of being able to influence behavior moredirectly. Many brands for treating chronic conditionsnow offer patient support tools such as educationaland support websites, apps and other devices tohelp patients with taking their medication andimproving their overall lifestyle. Our syndicated research findings reveal that

patients who come to a joint decision about theirtreatment are more likely to be compliant and tosuccessfully manage their condition. Pharma com-panies have an opportunity to affect outcomes forpatients by understanding and intervening at criti-cal points in the patient journey. In order to meet patients’ needs effectively, pharma

companies need to have as much understanding ofthem as they do the physician prescribing thebrand.Technology has helped us as market researchers

to deliver greater patient insights. First it wasonline research. Now, mobile technology canimmerse us in the patient’s world. Using interceptmethods, we can find out exactly how patientsare really acting and feeling, in the moment ofthe experience. We can be distant and yet there,which means market research can conduct amore “observational” style of research. We can also gather rich data, from pictures to

audio diaries and videos through which patientsare able to share the experience of living withtheir disease. The resulting output to our pharmaindustry is enhanced and enriched insights thatincorporate the voice of the customer.

Mike Kelly, Americas CEOKantar Health

The success or failure of the AffordableCare Act (ACA) will be the 2014 wild card.The ACA promises greater patient accessand better care for patients; while

“increased access” will be easy to measure, “bettercare” may be too abstract a metric to easily quantify.Increasing EMR data availability provided under the

ACA will help provide a more holistic view of patientcare.  However, since many of the inputs into individ-ual electronic records are used to help determine eligi-bility and access, using these same data alone to mea-sure improvements in patient outcomes may be morelimiting. This complexity, combined with the growingneed to monitor preventive care and patient choicesunavailable in the EMR, will create an information gapthat can only be filled with primary research.Well-designed primary research will provide man-

ufacturers with a way to measure outcomes and tobetter understand how dramatic the changes of theACA are on the healthcare landscape.  Regardless ofhow well the ACA meets its objectives of greaterpatient access and improved care, we can expectnew information and measurements required toassess its success or failure to significantly advanceour understanding of our own healthcare system.

Harriet Kozak, U.S. President

The Research Partnership

The patient’s role in healthcare will continue togrow in importance in 2014. Pharma is now taking

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Bob Leitman, Regional Vice President, Healthcare

Toluna

2014 will be the beginning of a profoundlong-term change in the American healthcaresystem. Change will be slow and ongoingfor many years. Some things are certain:

More people will have health insurance, includingprescription drug coverage. The nature of thatcoverage will vary, but on the whole, it will bedeeper than it was before. As a result, the focus ofdecision-making will move from a small numberof key players to a wider group.There are, as a result, new needs for survey research

as we’ll need more insight on how decisions arebeing made about choice of health plans, choice ofdrugs, procedures, and devices, as well as the influ-ence of out of pocket costs . Expect institutions andindividuals to change directions over time.Researchers who can put these pieces together in

an algorithm (that gives an accurate reading of themarket at any point in time) and nimble in fore-casting and adjusting that algorithm to ongoingchanges in the market will be able to command apremium. Similarly, data collection companies thatcan access all of the relative groups that need to besurveyed, will be increasingly important.There is much to be learned from markets out-

side the United States. While health systems inmany of these countries have been relatively stable,they will be subject to the same demographic pressuresfrom an aging population and, therefore, will haveto deal with cost pressures similar to those in theUnited States.In sum, healthcare will be a highly dynamic market-

place for the next decade and beyond, and it willtest the best capabilities of us all.

driving significant benefits to research stakeholders.Specifically, rethinking the procurement process tobring recruiting partners to the table earlier in theprocess is leading to what stakeholders feel is animproved research model. It is the efficiencies thatthis model can achieve that bring us nearer to the‘Holy Grail’ of paradigms; faster moving projects,reduced costs, and increased quality of projects. We have seen a significant increase for end client sat-

isfaction scores. These scores stay high and overallvalue metrics achieve levels that otherwise wouldn’t bepossible. A single source data collection partner makesdata integration a possibility. Following patients longi-tudinally across a treatment pathway or having accessto mine all data across studies has been a key driver onthe ability for the partnership to drive value.Manufacturers and Insight partners are also

beginning to recognize that they need to addressthe real threat: the decline in the willingness oftheir customers to participate in research andtherefore finding targets becoming increasinglychallenging and costly.There is no questioning that rare and orphan diseases

are a focus area for HC research and lower incidencepopulations relating to them can present additionalrecruiting challenges. When you overlay the currentprocurement structure that typically doesn’tinvolve direct or long-term interaction betweenresearch teams and recruiting partners, it becomesself-evident that model is unsustainable. Allowing recruitment companies to take a more

strategic and collaborative approach to fulfilling thelong-term recruitment needs is already counteringthese threats and challenges to ensure that clientsand can continue have powerful conversationswith their audiences. Breaking apart insight generation from recruiting will

ultimately lead to strengthened partnerships betweenend clients, insight providers and recruiting partners.I believe that the opportunity for more minds con-tributing to core competences, from different per-spectives and early in research planning is critical tobetter research performance in our rapidly-evolvingresearch environment.

Consortium where we conduct 30 minute,in-depth interviews with market researchexecutives focused on three key topics:•Success Drivers•Innovation•Vision for the FutureOur learnings, based on interactive dia-

logue with these market research profes-sionals, lead us to make the following predictionsfor what we believe will be evolutionary (vs. revo-lutionary) change in the Pharma Market ResearchIndustry in the coming year:• Innovation within the pharma market research

profession will be represented by extending ourreach. We won’t be just collecting insights usinginnovative methodology; we’ll be taking a moreactive role in facilitating implementation of innovativeactions in response to those insights. Pharmamarket researchers will migrate from being problemidentifiers and information gatherers to strategicinterpreters and action identifiers, relying on theirbroader understanding of the customer groups(physicians, patients, payors, etc.) • More resources within pharma market

research, both human and financial, will be dedicatedto synthesizing multiple sources of both insightsand data into actionable business plans for whichownership will be shared across a multidiscipli-nary team. We believe the role of the researcheron these teams will grow in significance as MRbecomes more action-oriented in support ofstrategic decision-making.Through these evolutionary changes, we predict

that pharmaceutical market researchers will gainincreased respect within their companies as marketingstrategists, informing and influencing actions thatare taken throughout the organization inresponse to information and insights gatheredand interpreted through increasingly complex andmulti-faceted market research.

head: it's big money from a small number of people asopposed to small money from a big number of people.

In one scenario, it's business as usual: Payors simplypay up huge tabs for a relatively small number ofpatients, which, by the way, keeps on growing as SPcaters to a growing number of orphan, ultra-orphanand hitherto unheard-of diseases.In another more disturbing scenario, commercial

members refuse to pay up as they recognize theirpremiums are unfairly high (the fact that they'llhave to pay a fine for purchasing a “Cadillac” planmay just be the straw that breaks the camel's back). They cannot relate on a personal level to diseases

as they know no one in their immediate circle offriends, colleagues, neighbors and acquaintancesthat are afflicted with such diseases. They may beemboldened when the result of their genetic profileconfirms they will never get such a disease (such atest is available for $100 from 23andme). In thatcase, they may refuse to pay up and find the finefor violating the individual mandate a moreattractive option. In that case, payors will have to raise the premium

for the remaining members to make up for the missedrevenue, thereby initiating a vicious downward spiral.Some people argue we should not be concerned that

new people that gain access to healthcare coverageunder PPACA (some initially estimated 32 millionpeople) will bring in huge premiums which would bemore than enough to pay for those claims.Government PPACA subsidies will exceed one tril-lion dollars over the next 10 years.The disturbing fact is those same patients will be

filing a lot of claims as they haven’t had healthcarecoverage for a very long time (pent-up demand).It is analogous to a restaurant opening its doors toa group of very hungry people who have not eatenfor days and suddenly have access to food. Therestaurant collects a lot of money; it also has tokeep on refilling the food trays.Here's the rub: In Scenario One, one can be selfish

and still play along as there is a very good chance offiling a claim. In Scenario Two, one needs to be likeMother Teresa and accept to pay a hefty premium,while fully recognizing one will virtually never filean SP claim. The reason we conferred a Nobel Prizeon Mother Teresa was precisely because she was souncharacteristically unlike the rest of us, selfish profitmaximizers always on the lookout for a great deal!It is safe to say it's Scenario One today and may

be Scenario Two tomorrow. Of course, we do notwant Scenario Two to ever rear its ugly head.

Rob Ramirez, SVP, Strategic Development

Schlesinger Associates

Over several years, the industry has focusedon identifying ideas that will provide ‘disrup-tive change.' When it comes to healthcaremarket research, that concept has typically

led to tweaking or retooling research methodologies.Changing the partnership dynamic between end-

clients, insight firms and recruiting companies is

Shirley Stoltenberg, Consultant

Vivisum Partners

In 2012 we started the Research (R)evolutions* ini-tiative, whose core element has evolved into an annual

Jean Patrick Tsang, Ph.D., MBA,President Bayser Consulting

Specialty Pharma (SP) will exceed the $100billion mark this year! It will be a well-need-ed oasis in our $320 billion prescriptionmarket relentlessly pummeled by generics. How long will the bonanza last? The ques-

tion is a good one as SP flips the revenue model on its

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P H A R M A M A R K E T R E S E A R C H R E P O R T

Matt Wallach, Co-Founder & President

Veeva Systems

Cloud computing is widely recognized as thelife sciences industry standard for commercialoperations. In its latest life sciences CRMvendor report, IDC Health Insights noted that

cloud-based systems are now mainstream. In recent years, the industry landscape has evolved

rapidly, and I’ve witnessed progressive companiesadopt these solutions for the flexibility, easy collabo-ration and agility they provide. Moreover, movinginto the cloud presents the opportunity for uniquedata and a deeper understanding of customer behav-ior, revolutionizing your work as a market researcherand dramatically increasing your effectiveness.For example, the ability to compile all call activity

and multichannel interaction data across theindustry, can provide enormous insight into thechannel preferences of physicians. With the cloud,data can be updated, verified and made available inreal-time so you can track trends as they happen.Market shifts will be detected faster than ever,leading to more precisely targeted and impactfulcustomer interactions. We’re at the start of a profound change, with data

analysts at its center. As a critical mass of companiesutilize the cloud, their aggregated activity creates apowerful customer data resource. Until now,crowdsourcing Big Data across customers to createindustry benchmarks was impossible, but as thiscloud-enabled data permeates the marketplace, itwill soon be a competitive necessity.

Sherri Neuwirth

Thank you to the

2013 sponsors of

Research BusinessDAILY Report

Jo Anne Nathan

Bob Lederer

RFL Editor & Publisher BobLederer was honored with the2013 Next Generation MarketResearcher (NGMR) Award forIndividual Achievement in MR“disruptive innovation” at TheMarket Research Event inNashville on October 21. Honoredwas our Research

Business DAILY Reportnewsvideo. On page 1, you can seewhere to access RBDR.

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