Episode 003: Payer Power

The power of the payer in the biopharmaceutical industry has increased dramatically over the past several years, according to Keith Kelly, Managing Director and Head of the Pricing and Market Access Practice of inVentiv Health Consulting. Market access was once a dull topic. Today, price and if a drug will be covered is discussed on earnings calls and in the board room. What payers do can make or break the stock price of a company overnight. In this episode, Kelly and host Jeff Stewart discuss what factors have contributed to the payer’s rise in influence; how payers are wielding this power; why drug price negotiation is similar to discount suit shopping; and the “prisoner’s dilemma” of acquiring access for products entering the market at the same or similar time. The pair also explores the nirvana concept of “sustainable market access” – is it even possible? – and the value creation equation for a pharmaceutical company looking to achieve it for their products. Data from this episode originated from the following sources: Gross to net pricing from Credit Suisse; manufacturing cost analysis published in the Journal of Pharmaceutical Innovation and Nature Biotechnology; and Hepatitic C drug costs covered in Reuters. The information, data, and other content contained in this podcast and any associated articles, sponsorships, advertisements, announcements, or other communications are provided for informational purposes only and should not be construed as professional advice of any kind, on any subject matter. The content of the podcast contains general information and may not reflect current legal developments, verdicts or settlements. Moreover, the content is not guaranteed to be complete, correct, timely, current or otherwise up-to-date. inVentiv Health reserves the right to make alterations or deletions to the content at any time without notice to you. inVentiv Health and its subsidiaries expressly disclaim all liability in respect to actions taken or not taken based on any or all of the podcast content. The information, data, and other content contained in this podcast is not a reflection of, endorsed by or otherwise affiliated with, nor should it be attributed to, any of inVentiv Health’s clients, customers or other contacts. The views expressed in this podcast belong solely to the speakers and do not represent those of their organization.  If you want access to more future-focused, actionable insights to help biopharmaceutical companies better execute and succeed in a constantly evolving environment, visit the Syneos Health Insights Hub. The perspectives you’ll find there are driven by dynamic research and crafted by subject matter experts focused on real answers to help guide decision-making and investment. You can find it all at https://www.syneoshealth.com/insights-hub. Like what you’re hearing? Be sure to rate and review us!  We want to hear from you! If there’s a topic you’d like us to cover on a future episode, contact us at [email protected].