Fact: payer research is integral to development of market access and commercialization strategy. If that is in fact true, then why does it often get delayed or overlooked? Timing, cost and complexity are often cited as the primary reasons for delaying or de-prioritizing payer research.
First, let’s evaluate the “complexity” claim. Yes, executing payer research requires certain knowledge and experience. However, most of the fundamentals of market research apply to payer research. The key to successful execution of payer research ultimately boils down to asking the “right” questions and including the “right” stakeholders. Much of the complexity can be addressed by doing the homework and having a thorough understanding of market dynamics, and preferably strong hypotheses that can be tested in research.
In terms of timing, it’s almost never too early for payer research. Yes, even early clinical stage assets can benefit greatly from payer research. How or why should an early-stage biotech invest limited resources in any type of research, especially payer research? I would simply argue that there are few investments that would have a better ROI than strategically timed payer research. The primary reason for the positive ROI is that it can help inform your clinical program, including target endpoints. What happens if we wait until we have more data? That’s a viable option, but it increases the risk of trials being executed with suboptimal or flawed design and/or endpoints, which can result in millions of dollars of additional spending and may potentially undermine the overall value of the asset in question.
Whether it’s a top-10 pharma company or an early-stage biotech, the reality is that resources are limited during early stages of development. Payer research can be expensive, especially when it is being used to inform market access and/or go-to-market strategy for products that are in later stages of development. Early in the process, however, a few focused payer/KOL interviews can be extremely beneficial in informing the clinical trial program, positioning strategy, and aid in framing out the TPP. Are a few focused interviews really enough? Yes! The payer universe is fairly small, most companies that operate in this space have only a couple dozen payers that they use on a regular basis. The key is to ensure that the ”right” payers are included and the “right” questions are asked – this is where the experience and knowledge helps.
The next few blogs will outline how to ensure that the “right” stakeholders and “right” questions are asked. If you have any questions or would like to discuss your research needs, please don't hesitate to reach out.