Ongoing shift in influence towards drug plan managers, new prescribers and consumers
MONTREAL (Quebec) – June 16, 2008 -- IMS Health Canada released today its annual PharmaFocus report, a comprehensive independent review of the Canadian pharmaceutical marketplace that covers a broad range of topics, from politics and health care, to government reform initiatives to regulatory, business and pharmaceutical marketing issues.
According to its ’“Stakeholder Influence on Pharmaceutical Product Selection 10-Point Scale”, IMS foresees that by the end of the forecast period (2012) physicians will see their influence on pharmaceutical product selection increasingly diminished as compared to today. This shift is shaped by the increasing collective influence from a number of healthcare stakeholders (see table 1 for trends in stakeholder influence).
Payers/Managers Growing in Influence
A large part of this shift is cast by the provincial drug plans and related federal bodies and initiatives like the Common Drug Review (CDR). Drug approval and advisory groups are collectively becoming more prominent due to expanded mandates and heightened scrutiny on cost expenditures. It is expected that provincial drug plan initiatives will spawn a new era of deal-making between provincial plans and manufacturers. “The new agreement-making powers embodied in Ontario’s Executive Officer (EO) could lead to many diverse and innovative arrangements being struck between pharmaceutical companies and provincial drug plans.” said Ian Therriault, Vice President Thought Leadership, IMS Health Canada.
In addition, drug plan management by the provinces will have more consumption data – thanks to initiatives like the National Pharmaceutical Drug Utilization Information System (NPDUIS) – along with more comprehensive drug information systems. These new tools are expected to spawn more sophisticated techniques for plan management, resulting in greater and more specific control over beneficiary coverage and benefit conditions tied to the individual’s condition and broad clinical practice guidelines – as opposed to today’s simple listed or not listed formulary-driven approach.
While the private payer segment will continue to be a significant portion of the market by 2012, IMS predicts that its overall influence will only marginally change over the next five years. The expectation for this market sector is that there will be more off-loading of costs from the public sector to employees as employers will continue their move to cap financial exposure.
New practitioners on the horizon
The new prescribing powers that have been bestowed on pharmacists in Alberta (expected in other provinces in the foreseeable future) and more licensed nurse practitioners will have their collective influence increase from today’s current levels. This shift represents just one aspect of the broader healthcare reform agenda to establish more integrated health care teams, which in turn will likely trigger more support activities to the these teams from pharmaceutical manufacturers.
Accelerating patient influence
While on a relative basis, the consumer is still viewed as a relatively minor influence, IMS sees their influence increasing as they become better informed and get more involved financially in the prescription transaction. This extends from asking the right questions of their physicians and caregivers right through to greater adherence of treatment protocols. As a result of this rise in influence, the patient or consumer of health care is expected to become a more important part of go-to-market activities from drug manufacturers.
Implications for Pharmaceutical, Biotech and Generics Manufacturers
“These indicators show a marketplace in a slow but significant transition,” said Therriault. “Canadian pharmaceutical companies need to respond in a timely and adequate way to these fundamental shifts in influence and determine the optimal deployment of their commercial activities. Today, commercial strategies and tactics are being re-assessed to better align with future opportunities. In this market environment, building relationships directly with patients as they become better educated and take a more active role in their own healthcare also is essential. And, the industry must continue to engage this broader array of stakeholders in the health care community to ensure that the value and innovation from their drugs does lead to improved patient care outcomes and an improved health care system.”
About IMS Health
Operating in more than 100 countries, IMS Health is the world’s leading provider of market intelligence to pharmaceutical and healthcare industries. With US$2.2 billion in revenue in 2007 and more than 50 years of industry experience, IMS offers leading-edge business intelligence products and services that are integral to clients’ day-to-day operations. IMS information is also used by researchers, academics, government and other stakeholders to advance health through informed decision-making. Additional information is available at http://www.imshealthcanada.com.
For information, contact:
Madeline Gareau Lagden
IMS Health Canada
514 428-6018
Lynn Bessoudo
NATIONAL Public Relations
514 843-2365