Greater Communication Between Drug Companies and Payers Early in Drug Development Streamlines the Final Submission Process, Says Cutting Edge Information
RESEARCH TRIANGLE PARK, NC--(Marketwire - October 27, 2009) - Not enough communication takes
place between drug companies and payers before Phase 3, according to a new
study from Cutting Edge Information
(http://www.cuttingedgeinfo.com/market-access/). The study finds that drug
companies contact payers an average 2.4 times in all of Phase 2.
The report, "Securing Market Access: Reimbursement, Payer Relationships and
Healthcare Reform," argues that to gain a better understanding of payers'
needs, drug companies must increase their level of contact with payers
early in drug development. Strengthening communication at that point will
ensure that companies' clinical processes develop viable products that
managed care organizations and healthcare insurers will cover.
"Improving how drug makers communicate early in the development process
produces stronger, more competitive products by increasing cooperation with
payers during registration and launch," said Jason Richardson, president of
Cutting Edge Information. "Providing more valuable information to payers
during early-stage drug development and reducing later 'firefighting' is
critical for market access teams."
The study finds that the number of conversations between account managers
and payers increases throughout a drug's development cycle and peaks during
the regulatory approval and launch stage. The average 15.1 contacts made
during regulatory approval and launch are more than all other phases of
The number of contacts with payers in the final stages before launch often
results from mistakes made on the formulary submission documents. Payers
ask that corrections be made and request additional information that was
not submitted with the original drug dossier. These requests add days --
and even weeks -- to the submission process, potentially delaying a drug's
launch. Common errors can multiply, overwhelming even the most experienced
Companies can avoid most mistakes by communicating clearly and regularly
with payers throughout the early stages of drug development. Extra phone
calls, emails, or face-to-face visits with the payer help account managers
better understand payer requirements and preferences. The account manager
communicates the information along to the market access department well
before preparing the final submission. Streamlining the process also
reduces the time that account managers spend putting out fires.
"Securing Market Access" contains strategies and best practices for
achieving the best reimbursement status. Metrics include companies' payer
targets, communication methods and timing.
For a complimentary brochure of this report, visit