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For life sciences, there’s no time to waste

Outcomes-based commercial models will redefine competitiveness.

OVERVIEW

New technologies now allow US life sciences companies to pursue “outcomes-based” commercial models that directly tie their reimbursements to the real-world outcomes their patients experience. Such arrangements are likely to revolutionize the industry. While companies focused on certain therapeutic areas will adapt first, all companies will eventually need to capitalize on digital investments to define, monitor and improve patient outcomes. Those that embrace the outcomes-based commercial opportunity early will have the best chance of not only regaining control of key profitability levers, but also influencing the industry’s shift to a healthier financial model.

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Outcomes are all that matter

KEY FINDINGS

The interest in outcomes-based arrangements—driven largely by digital advances—is most pronounced in the United States.

In 2016, the number of outcomes-based deals that US pharmaceutical companies crafted grew by 254 percent (vs 2012-15 period).

The 2016 deals represented 38 percent of all publicly reported US outcomes-based deals in history.

43 percent of US outcomes-based care arrangements that cited the use of enhanced patient data tracking or predictive/real-world evidence analytics were developed in 2016.


Falling technology costs will open up additional opportunities for stakeholders—not just in the US, but around the world—to define, monitor and improve patient outcomes. We believe the industry will see short-term growth in outcomes-based care models focused on oncology, viral hepatitis, diabetes and several other therapeutic areas. By extrapolating on our analysis, we predict respiratory and autoimmune areas are candidates for such arrangements in the future.

In the US, tying digital health investments with meaningful patient interventions is the key to making outcomes-based contracts more than just pieces of paper.

RAY PRESSBURGER

Managing Director – Accenture Strategy, Life Sciences

RECOMMENDATIONS


To capitalize on outcomes-based care models, Life Sciences companies should:

Shape the market for such arrangement via advocacy.

Be vocal proponents of reform and develop an “outcomes-based” mindset across the workforce.

Use digital technologies in new ways, for new purposes.

Wearables, IoT, AI, and mobile platforms will open new opportunities to stage more targeted and secure patient interventions.

Prepare for reinvention.

Embrace new data and analytics technologies and engage customers in new ways to ensure they support therapy protocols for common outcomes. Clear internal policies and external value-sharing models will be critical.

HIGHLIGHTS

AUTHORS

Ray Pressburger

Ray Pressburger

Managing Director – Accenture Strategy, Life Sciences

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Elizabeth Coulton

Elizabeth Coulton

Managing Director – Accenture Strategy, Life Sciences

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Benjamin Rhees

Benjamin Rhee

Managing Director – Accenture Strategy, Life Sciences

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