Skip to main content

Managing Biotechnology: From Science to Market in the Digital Age

Managing Biotechnology: From Science to Market in the Digital Age

Francoise Simon, Glen Giovannetti

ISBN: 978-1-119-21617-9

Oct 2017

312 pages

In Stock

$49.95

Description

A comprehensive overview of the new business context for biopharma companies, featuring numerous case studies and state-of-the-art marketing models 

Biotechnology has developed into a key innovation driver especially in the field of human healthcare. But as the biopharma industry continues to grow and expand its reach, development costs are colliding with aging demographics and cost-containment policies of private and public payers. Concurrently, the development and increased affordability of sophisticated digital technologies has fundamentally altered many industries including healthcare. The arrival of new information technology (infotech) companies on the healthcare scene presents both opportunities and challenges for the biopharma business model. To capitalize on new digital technologies from R&D through commercialization requires industry leaders to adopt new business models, develop new digital and data capabilities, and partner with innovators and payers worldwide.

Written by two experts, both of whom have had decades of experience in the field, this book provides a comprehensive overview of the new business context and marketing models for biotech companies. Informed by extensive input by senior biotech executives and leading consultancies serving the industry, it analyzes the strategies and key success factors for the financing, development, and commercialization of novel therapeutic products, including strategies for engagement with patients, physicians and healthcare payers. Throughout case studies provide researchers, corporate marketers, senior managers, consultants, financial analysts, and other professionals involved in the biotech sector with insights, ideas, and models.

 

JACQUALYN FOUSE, PhD, RETIRED PRESIDENT AND CHIEF OPERATING OFFICER, CELGENE

“Biotech companies have long been innovators, using the latest technologies to enable cutting edge science to help patients with serious diseases. This book is essential to help biotech firms understand how they can–and must–apply the newest technologies including disruptive ones, alongside science, to innovate and bring new value to the healthcare system.”

BRUCE DARROW, MD, PhD, CHIEF MEDICAL INFORMATION OFFICER, MOUNT SINAI HEALTH SYSTEM

“Simon and Giovannetti have written an essential user’s manual explaining the complicated interplay of the patients who deserve cutting-edge medical care, the biotechnology companies (big and small) creating the breakthroughs, and the healthcare organizations and clinicians who bridge those worlds.”

EMMANUEL BLIN, FORMER CHIEF STRATEGY OFFICER AND SENIOR VICE PRESIDENT, BRISTOL-MYERS SQUIBB

“If you want to know where biopharma is going, read this book! Our industry is facing unprecedented opportunities driven by major scientific breakthroughs, while transforming itself to address accelerated landscape changes driven by digital revolutions and the emergence of value-based healthcare worldwide. In this ever-changing context, we all need to focus everything we do on the patients. They are why we exist as an industry, and this is ultimately what this insightful essay is really about.” 

JOHN MARAGANORE, PRESIDENT AND CHIEF EXECUTIVE OFFICER, ALNYLAM PHARMACEUTICALS

“Since the mapping of the human genome was completed nearly 15 years ago, the biotechnology industry has led the rapid translation of raw science to today’s innovative medicines. However, the work does not stop in the lab. Delivering these novel medicines to patients is a complex and multifaceted process, which is elegantly described in this new book.”

Related Resources

Instructor

Request an Evaluation Copy for this title

FOREWORD BY PHILIP KOTLER XI

PREFACE XIII

ACKNOWLEDGMENTS XVII

PRAISE XIX

ABOUT THE AUTHORS XXI

PART 1 NEW MODELS FOR NETWORKED INNOVATION  

CHAPTER 1 DIGITAL EVOLUTION OF BIOTECHNOLOGY 3

Industry Applications 5

Impact of Megatrends 6

Digital Health Opportunities 6

Infotechnology Initiatives in Healthcare 8

Disruption Risk from Infotech 8

Technology Strategies 11

Big Infotech Strategies 12

Conclusion 21

Summary Points 22

CHAPTER 2 BIOTECHNOLOGY FINANCING STRATEGIES 24

The Long Game 24

Financing Strategies for the Long Term at Alnylam 26

Strategic Decisions 30

Geographic Considerations 33

Sources of Financing 33

A Word about Mergers and Acquisitions 43

Summary Points 44

CHAPTER 3 SUCCESS THROUGH COLLABORATION 46

Alliance Evolution: More Players and New Structures 46

Strategic Alliances: A Stalwart of the Biopharma Industry 50

Janssen and OSE Immunotherapeutics: Deal Strategies in a European Context 52

Alliance versus Acquisition  53

Structure Considerations to Maximize Value 55

Divesting for Focus 55 Doing the Deal 56 Summary Points  65

PART 2    NEW BUSINESS AND MARKETING MODELS  

CHAPTER 4 PRECISION MEDICINE 69

What is Precision Medicine? 69

Targeted Medicines Multiply but Drug-Diagnostic Pairs are Rare 69

Precision Medicine is Happening at Several Levels 71

Multiple Forces, Beyond Science, are Driving Precision Medicine 72

Digital Precision Medicine 74

Precision Medicine in Practice: Lessons from Cancer 75

Challenges: Scientific, Infrastructural, Regulatory, and Commercial 79

Surmounting the Hurdles to Revolutionize Medicine 83

Stakeholder Expansion in Precision Medicine 86

Biopharma Must Drive, not be Driven by, Precision Medicine 87

Precision Medicine’s Future 90

Summary Points 92

CHAPTER 5 PRECISION MARKETING 94

Introduction 94

Portfolio Shift to Specialty Products 95

Balancing Evidence and Experience 96

R & D and Commercial Coordination 97

Science is the New Marketing 98

Value of Experience: The Consumer Decision Journey 100

Marketing Beyond the Pill 101

Targeting New Consumer Segments 102

New Physician Segments 102

Dual Branding Models 103

New Launch Strategies 105

Companion Diagnostics 105

Global Organization 108

Multichannel Communications 109

Content Marketing 110

Salesforce Strategies 111

Sustainability Strategies: Beyond the Life Cycle 113

Summary Points 118

CHAPTER 6 PATIENT CENTRICITY STRATEGIES 120

Introduction 120

Patient Centricity Drivers and Barriers 121

Discovery: Understanding Unmet Needs 123

Designing Patient-Friendly Clinical Trials 125

Connecting the Points of Care 130

Understanding the Patient Journey 135

Organizing for Patient Centricity 138

Who Are You Working For? Bristol-Myers Squibb Employee Engagement Initiative 138

Patient Engagement Metrics 140

Organization Models 142

Summary Points 143

CHAPTER 7 DRUG PRICING IN CONTEXT 145

Introduction 145

The Economics of Drug Pricing 146

Competing Definitions of Product Value Complicate Drug Pricing 153

Proving Efficacy in the Real World 155

Setting the Pricing Strategy 157

Analyzing New Pricing Models 160

Drug Pricing in the United States: The Pressure Continues to Build 162

Deployment of New Pricing Strategies 163

Experimental Pricing Strategies 165

Financing the Future: Affordability 169

New Tools for Outcomes-Data Capture 170

Conclusion 171

Summary Points 171

CHAPTER 8 STRATEGIC PAYER ENGAGEMENT 173

Payers Are Not All Alike 173

New Market Forces Increase Payer Power 175

The Increasing Importance of the Consumer in the United States 176

European Payers: High-Level Unity, Low-Level Fragmentation 180

United States Adopts European-Style Cost-Effectiveness Hurdles 181

Payer Engagement Strategies Must be Tailored, Scalable, and Flexible 182

Changing Biopharma-Payer Relationships: From Transactional to Collaborative 185

New Biopharma Organizational Models Needed 187

Biopharma-Payer Engagement Must Move Beyond Experimentation 188

Strategic Payer Engagement Comes in Many Forms 192

Summary Points 193

PART 3    NEW MODELS FOR DIGITAL HEALTH  

CHAPTER 9 DIGITAL HEALTH STRATEGIES 197

Introduction 197

Biopharma Digital Strategies 197

Digital Impact on Supply Chain Management 200

Digital Transformation of Commercial Activities 201

Consumer-Centered Trends 206

Provider-Centered Strategies: Telehealth 210

Conclusion 213

Summary Points 213

CHAPTER 10 CREATING AGILITY THROUGH DATA AND ANALYTICS 215

Introduction 215

Multiple Forces Converge to Create Data and Analytics Opportunities 216

Healthcare’s Four Data Vectors: Volume, Velocity, Variety, and Veracity 218

Extracting Value from Data Requires New Tools 221

The Analytics Continuum: From Descriptive to Prescriptive 223

Artificial Intelligence: The Potential to Make Drugs Smarter, Faster, and for Less 225

Data Analytics across the Biopharma Value Chain 226

Data and Analytics Challenges 233

Building an Analytics-First Organization: Cultural not Technical Hurdles 238

Conclusion 242

Summary Points 242

CONCLUSION 243

REFERENCES 246

INDEX 273