Oncology Market Access - Channel Dynamics ... - Kantar Health

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Reactions Roundtable About the Experts Mark Looman Analyst, Commercial Development Mr. Looman is responsible for analysis and authorship of OMA US subscription materials as well as responding to client inquiries and supporting custom engagements. Mr. Looman has co-authored peer-reviewed publications on the burden of illness and developed financial models, including budget impact models. He has a depth of expertise in healthcare coding systems and the Medicare inpatient reimbursement system. Question 1: Providers of distribution services for oncology drugs are diversifying. What are the types of services now provided by channel partners, and how do they add value to the product? Kantar Health’s Channel Dynamics module explores channel companies as the “middlemen” in the industry. They touch many of the major stakeholders and use these touch points to gain market share and power by moving product and providing increasingly valuable services. The core of what they offer is access to specialty drugs for a large base of providers who provide and administer these drugs (i.e., market share); the rest of their services build off this foundation and are proving highly important to the stakeholders. Consolidation in the specialty distributors (SD) market has left a few companies with a lot of power and a need to differentiate themselves. Product distribution is a low-margin commodity; services aimed at physicians secure distribution market share, but services targeted at payers and manufacturers are more profitable. Distributors have different strategies, so familiarity with the organizations is important for knowing how to leverage their services or for identifying potential issues. Although their core business is to distribute specialty drugs, SDs provide a wide range of services targeted toward specific stakeholders that they serve. SDs can offer payers ways to control spending on specialty drugs and act as a conduit of information between payers and providers; they can offer oncologists practice services, including electronic health records Figure 1: Channel companies interact directly with providers, payers and patients in the oncology care landscape Gordon Gochenauer Director, Commercial Development Mr. Gochenauer brings extensive experience in current treatment trends and assessments of the future treatment evolution for 30+ cancer types. His in-depth understanding of numerous clinical development programs combined with lessons learned from pricing, coverage and reimbursement and patient assistance programs make him uniquely qualified to help clients make important commercial development decisions. Mr. Gochenauer has authored a variety of oncology reports and is recognized as a market expert for both the US and Japanese markets. www.kantarhealth.com
Reactions Roundtable Specialty distributors are evolving their business models to remain competitive and relevant. (EHR), inventory management services and practice workflow and financial management software, as well as access to their group purchasing organizations (GPOs) to obtain discounts on drugs; and they can offer manufacturers data and consulting for their products throughout their lifecycle, including reimbursement and product launch strategies, hub services, REMS operations and product marketing. Manufacturers should keep abreast of practice management solutions offered by SDs with the goal of understanding how they affect prescribing and whether and to what degree they tilt the balance of power toward the SDs and away from the manufacturers. Question 2: How has the increased availability of oral cancer therapies influenced or expanded the role of the specialty pharmacy? Specialty pharmacies (SPs) are commanding increased attention as oral therapy is more common and accepted. Physicians have become more willing to prescribe oral therapy despite no financial incentive to their practice—in part because of the services offered by SPs. Just two years ago, 60% of oncologists preferred to prescribe an IV drug over a therapeutically equivalent oral option. In 2012 this preference for IV drugs declined to just over 50% of oncologists 1 . As additional oral oncolytics become available and oncologists are prescribing them more, reliance on SPs is increasingly becoming a routine part of a practice’s daily business. Figure 2: % of All US Cancer Patients Treated with Branded Oral Oncolytics Figure 3: Expenditures on oral oncology are skyrocketing despite modest increases in utilization Oral Oncology Drug Statistics, 2011 % of Total Drug Spend 2.3% ∆ from 2010, Utilization 2.6% ∆ from 2010, Inflation* 8.6% Source: Kantar Health CancerMPact ® US Patient Metrics Available from www.cancermpact.com. Accessed August 2012 ∆ from 2010, PMPM 18.6% *Inflation corresponds to changes in the cost of drugs; Unit cost inflation was driven almost exclusively by brand name drugs. Source: Prime Therapeutics PMPM = Per member per month 1. Kantar Health; Oncologist Survey, June 2012 ONC 4.15 If there were two treatments, one oral and one IV, that were essentially equivalent in efficacy and tolerability, would you be more likely to prescribe the oral or IV? ONC 4.15.1 Thinking back to two years ago, would you be more likely to prescribe the oral or IV for two treatments that were essentially equivalent in efficacy and tolerability? www.kantarhealth.com
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