Pharma’s shift toward outcome-based healthcare
Exploring the industry’s commitment to patient-centric outcomes (760 words, 3.5 minutes)
The pharma industry, long focused on developing, producing and selling drugs, is now being pushed to take more responsibility for whether those drugs actually improve individual patients’ health. A growing movement toward “outcomes-based healthcare” aims to tie payments to drug companies to measurable benefits in patients’ well-being rather than just compensating them for selling pills and vials. While still in its early stages, this shift toward accountability has sent ripples through a sector accustomed to getting paid based on volume. Drug companies are pressured to prove that their products do more than raise hopes.
According to an article in Econsultancy, outcome-based healthcare marks a departure from the traditional volume-based pharma models. Rather than focusing solely on the number of prescriptions filled, drugmakers are now more committed to the real-world impact of their products on patient health.
A Health Care Management Review study notes that a commitment to prioritize the well-being of patients lies at the core of outcome-based healthcare. It’s not just about offering a solution; it’s about ensuring that this solution enhances patients’ quality of life. Advanced analytics are pivotal in monitoring patient progress, forecasting outcomes, and refining treatment approaches. In a way, patient outcomes are the accurate measure of success, the authors say.
An article in the journal Academic Medicine points out that collaboration is critical in outcome-based healthcare. The industry is witnessing increased partnerships between pharmaceutical companies, healthcare providers, and payers to achieve shared objectives. These collaborations help align incentives and promote the delivery of value-driven care.
According to the Center for American Progress, the days of arbitrary pricing in the USA market are nearly gone. The industry is progressing toward models of value-based pricing, where the price reflects the real-world value that products provide patients. The outcomes ultimately decide the prices.
Additional sources:
THIS WEEK 10/24/23
Orasis Pharmaceuticals announced the U.S. FDA has approved the company’s pilocarpine hydrochloride ophthalmic solution (Qlosi) for treating presbyopia in adults.
Health Canada granted a Notice of Compliance for Sumitomo Pharma and Pfizer Canada’s Relugolix, estradiol and norethindrone acetate tablets (Myfembree) for the treatment of moderate to severe pain associated with endometriosis in pre-menopausal women.
Pfizer Canada and the Skin Spectrum Summit announced the winners of the new Canadian Skin of Colour & Diversity Scholarship program, which aims to improve dermatological care for underrepresented populations in Canada. Dermatology residents Dr. Nickoo Merati from McGill University and Dr. Muskaan Sachdeva from the University of Toronto are this year’s scholarship winners and will receive $20,000 to fund their innovative projects.
The U.S. FDA approved UCB’s zilucoplan (Zilbrysq) for treating generalized myasthenia gravis in adult patients who are anti-acetylcholine receptor antibody-positive.
LISTEN UP
In season 11 of the NPC Podcast, Paul Petrelli, General Manager of Jazz Pharmaceuticals, gives insights into the workplace values of Generations X, Y, and Z, post-Covid leadership and work culture, and corporate responsibility. Hear him in conversation with podcast hosts Mitch Shannon, Jim Shea and Mark McElwain.
HEALTHBIZ REWIND
This feature of NPC Healthbiz Weekly looks back at some of the most insightful moments from previous NPC Podcast episodes. In Healthbiz Rewind, you’ll read bold life sci predictions made during the renowned “Prognostication Korner” segment of the NPC Podcast.
Tracy Clinch
President & CEO
Masitek Instruments Inc.
Riverview, New Brunswick.
Season 05, episode 06
Listen to this episode here
What are you most excited about? (This episode was recorded in August of 2021)
I’m most excited about our customers. I get really excited when customers rebuy more sensors because then I know we’re helping. We built this company with the view of partnering with our customers to make their lines and their products better. So, I get excited when customers reorder, add to their portfolio of sensors from our company, and try to tell us how much it’s helped them.
So, suppose you think about how many new container designs come out from companies every year. In that case, we can test all of those containers before they’re even put into production. So, you could select, if you were redesigning a vial, if you were redesigning a bottle of wine, you could test that product before it even gets to the production line to see if it’s going to make it through your production line. I like partnering with our customers to solve those problems, and that’s what excites our team.
Just four weeks away: It’s the 17th Annual National Pharmaceutical Congress on Wednesday, November 22, 2023
The 17th Annual National Pharmaceutical Congress will be held on November 22, 2023, at the Mississauga Convention Centre. As Canada’s most significant stage for leaders in the pharmaceutical industry, the Congress presents industry reflections, ideas, and innovations. The Congress is attended by more than 200 delegates annually and is an opportunity to learn, reflect, and network with the industry’s most prominent thought leaders and visionaries. Register now for 50% off the regular price.
NEXT WEEK
It’s easy to get your no-charge subscription to NPC Healthbiz Weekly, and we’ll send each issue to your phone or inbox each Tuesday at 6:00 a.m. sharp.
You are receiving this newsletter because you are a client of Chronicle Companies, attended a National Pharmaceutical Congress live event or webinar, or previously requested a subscription to one of our newsletters. If you no longer wish to subscribe to this newsletter, please email the subject line “Unsubscribe NPC Healthbiz” to health@chronicle.org.
NPC Healthbiz Weekly is published by Chronicle Companies, 701 Ellicott Street, Buffalo, N.Y. 14203. Canadian Office: 1460 The Queensway, Suite 212, Etobicoke, Ont. M8Z 1S4
Mitchell Shannon, Publisher; R. Allan Ryan, Editorial Director; John Evans, Sydney John-Baptiste, Joyce Pitters-Hands, Jeremy Visser, Editors; Cristela Tello Ruiz, New Business Development; Amy Elder, Intern
Content is copyright (c) 2023, Chronicle LifeSci America Corp., except as indicated. Are you interested in contributing to this newsletter or learning about Chronicle’s services? Please write to us at health@chronicle.org.
Thanks for reading NPC Healthbiz Weekly. Be sure to subscribe to receive new posts directly to your inbox.