How to Address Regional Market Access Hurdles in Decentralised European Countries
Transcription
How to Address Regional Market Access Hurdles in Decentralised European Countries
How to Address Regional Market Access Hurdles in Decentralised European Countries ISPOR Workshop 5 Prague, Czech Republic Sunday, 7 November 2010 Discussion Leaders Mondher Toumi – Claudio Jommi – PhD, MD, Professor of Decision Sciences, University Claude Bernard Lyon 1, Lyon, France Associate Professor, Università del Piemonte Orientale and Pharmaceutical Observatory, Cergas, University of Bocconi, Milano, Italy Steven Flostrand – MBA, Business Development Director, CreativCeutical, Paris, France 2 Workshop Purpose To review the process, evidence required, and rationale for positive formulary listing of new, innovative medicines at regional/local level in decentralised EU countries 3 Introduction: the power and influence of regional decision-makers Pr. Mondher Toumi Universite Claude Bernard, Lyon I Where is Regionalisation a Factor in Determining Access? 5 Regionalisation is Widespread 6 Why is Regional Power Developing? Federal/central government set a vision while local/regional decide on implementation Often split short-term decision and longterm decisions Balance of power and level of autonomy is very different from one country to another 7 Balance of Power for Pharmaceuticals Payers at a national level decide on – – – Price and reimbursement National MAA Recommendation Payers at a regional level manage – – – – Entry date Local MAA Prescription restrictions Local recommendation 8 Formulary Listing and Regional Access Remain Unaddressed Complex and very atomised market One size does not fit all Rules not transparent Divergent requirements within the same country The industry has not yet succeeded in addressing regional hurdles in a rational and systematic way as done for national bodies 9 New Access Paradigm National – – – – level Benefit over next best alternative Cost effectiveness Treatment guidelines Public-Health impact Regional – – level Cost containment Local recommendation 10 Double Hurdle Reduces Market Access Regional National +/+ +/- -/+ -/11 Market Access: Focus and Priorities of Decision Makers Political National Regional Local Budgetary impact Scientific Budget Holder Not Budget Holder 12 Market Access Stakeholder Opinions and Actions Are Largely Driven by Price Key stakeholder levels National Regional Local Hospital Each level will be driven by price and therefore will share the same mindset: a consistent approach will be important There is also a continuum in terms of the level of detail that is required by the stakeholders in each market More technical HAS NICE CDR Less technical Scotland SMC Canadian provinces 13 Swedish County councils Pharmaceutical lead Leverage at a Regional Level Insight into regional government dynamics, decision processes and related pharmaceutical decision bodies Budgetary impact at the region level – Drug, Ambulatory, Hospital, Social services Regional Public Health Initiatives – Mental Health, Breast cancer, AIDS etc. Local Advocacy is a powerful leverage Key opinion leaders Local contracting 14 The Case of Italy Claudio Jommi, MSc Associate professor, Università Piemonte Orientale, Novara, Italy Director of the Pharmaceutical Observatory, Cergas, Università Bocconi, Italy How to address regional market access hurdles in decentralised European countries claudio.jommi@pharm.unipmn.it claudio.jommi@unibocconi.it Agenda • Regionalisation and drug budget in the Italian health care system • Pharma regional policies impacting on Market Access (MA) • How to manage MA at the regional level Claudio Jommi, Novara and Bocconi University 16 Overview: the role of regions in the Italian health care system • Italy has a national health care system, based on a Beveridgian structure, with 21 Regional Governments in between a Central Government and 150 Commissioner Local Health Units + 80 Independent Hospitals • Regions decide the overall structure of their (regional) health care system provided that essential level of care, defined at the central level, is guaranteed • Regions are responsible for any deficit they incur on health care expenditure. Should they incur in a deficit, they have either to cut costs or to raise taxes • Drugs prices and reimbursement status (+ financial risk-sharing and conditional price and reimbursement agreements) are decided by the National Drugs Agency (AIFA); most of the other pharma policies are decided by Regions Claudio Jommi, Novara and Bocconi University 17 Overview: National (and regional) budgets for drugs • Budget on retail market: 13.3% of total health care funds; possible deficit covered by the industry and the distribution (payback) • Budget on hospital market: 2.4% of total health care funds; “possible” deficit is covered by the Regions Source: Aifa, First semester 2010 Claudio Jommi, Novara and Bocconi University 18 Regional Pharma policies which policies? (Cost-sharing) 1. Distribution of drugs by hospitals to nonhospitalised patients 2. Regional formularies 3. Procurement 4. Prescribing mix 5. HTA Programmes Claudio Jommi, Novara and Bocconi University 19 Regional Pharma policies 1. Distribution of drugs by hospitals • Drugs included into a national list (PHT), possibly extended by regions – e.g. erythropoietin, interferon, blood derivate • First therapeutic cycle after the discharge – decided by regions • Drugs used in specific setting (e.g. home care) – decided by regions Claudio Jommi, Novara and Bocconi University 20 m b To ria sc a Bo na lz an Ve o ne M to ar c Em he ilia Fr R iu li VG Li gu ri a Tr e Pi nto em Va l le ont d' e A Lo os m ta ba rd ia Sa Ital rd y eg C na al a Ba bria si li c a Ab ta ru z C am zo pa ni a Pu gl ia La zio Si ci li a M ol is e U Source: Aifa, 2010 10.8% 10.9% 12.1% 12.3% 12.4% 12.8% 13.8% Northern and Central Regions 14.7% 15.0% 13.9% 12.5% 12.7% 13.7% 14.2% 14.7% 15.7% 16.4% 16.4% 17.2% 18.5% 18.8% 20.0% Regional Pharma policies 1. Distribution of drugs by hospitals Southern Regions (% on retail public expenditure, 2009) Claudio Jommi, Novara and Bocconi University 21 Regional Pharma policies 2. Regional formularies: where? Bind ing regional formularies No regional formularies Binding sub -regional formularies Source: Pharmaceutical Observatory, Cergas Bocconi Claudio Jommi, Novara and Bocconi University 22 Regional Pharma policies 2. Regional formularies: what consequences? Oncology drugs and regional formularies Source: Aiom, Censis and Favo, 2010 Claudio Jommi, Novara and Bocconi University 23 Regional Pharma policies 2. Regional formularies: what consequences? Oncology drugs, regional formularies and access to market Source: Russo, P, Mennini, FS, Siviero PD et al, Annals of Oncology, 21, 10, 19 October 2010, 2081-2087 Claudio Jommi, Novara and Bocconi University 24 Regional Pharma policies 3. Procurement policies Regional Procurement Procurement managed by hospitals’ networks Procurement managed by hospitals Procurement possibly based on 4th ATC Level Campania Sicilia Lazio Lombardia Emilia R Puglia Veneto Piemonte Toscana Source: Aifa and Pharmaceutical Observatory, Cergas Bocconi, 2010. The selected Regions account for 78% of total market Claudio Jommi, Novara and Bocconi University 25 Regional Pharma policies 4. Prescriptions targets Therapeutic reference pricing (not possible anymore) (PPI) Prescription targets (volumes, mix) (PPI, Statins, Antihypertensive drug, SSRI, Macrolids) Source: Pharmaceutical Observatory, Cergas Bocconi, 2010 Claudio Jommi, Novara and Bocconi University 26 Regional Pharma policies 4. Prescriptions targets Targets recently given by AIFA Class Target PPI Off patent / Total PPI Antihypertensive Ace Inhibitors / (Ace Inhibitors + Sartans) Sartans Off patent (Losartan)/ Total Sartans Statins Off patent / Total Statins SSRI Off patent / Total SSRI Claudio Jommi, Novara and Bocconi University 27 Regional Pharma policies 4. Prescriptions targets (AIFA’s indicators) Expected savings over total drugs expenditure 9.0% 8.0% Northern and Central Regions Southern Regions 7.0% 6.0% Italy 5.0% 4.0% 3.0% 2.0% 1.0% Source: Aifa, 2010 ol C ise al a Sa bri rd a eg na Si Ba ci lia si li c a Ab ta ru zz o Pu g C am lia pa ni a M Bo lz a n Li o gu r M ia ar ch e La Pi zio em on te Va Tr lle en d ' to Ao Fr sta iu li V Ve G ne Em to ili To a R s L o ca n m a ba rd i U a m br ia 0.0% Claudio Jommi, Novara and Bocconi University 28 Regional Pharma policies 5. Regional HTA Programmes HTA Programmes Programme enforced by law Used to take decisions Preliminary Programmes Source: Pharmaceutical Observatory, Cergas Bocconi, 2010 Claudio Jommi, Novara and Bocconi University 29 Regional Pharma policies 5. HTA Programme in Veneto Horizon Scanning Drugs IDAN/UVEF Priority Setting Drugs Formulary Committee (Commissione PTORV) Assessment UVEF Appraisal Commissione PTORV/UVEF Policy Formulary Prescribing Protocols Medical devices Medical Devices Committee (CTDRM) UVEF CTDRM/UVEF Procurement CTDRM Commissione Tecnica per il Repertorio unico Regionale dei Dispositivi Medici IDAN Italian Drug Assessment Network PTORV Prontuario Terapeutico Ospedaliero della Regione Veneto UVEF Unità di Valutazione del Farmaco Source: Pharmaceutical Observatory, Cergas Bocconi, 2010 Claudio Jommi, Novara and Bocconi University 30 Regional Pharma policies 5. HTA Programme in Veneto Data Collected UVEF Report “Economic” Evidence Clinical Evidence Place in therapy Existing guidelines Clinical studies Other HTA Report Economic evaluation studies Cost per DDD / per therapeutic cycle Impact on drug budget Budget Impact Analysis Other HTA Report The industry is requested to give information to perform a BIA at the Regional level Claudio Jommi, Novara and Bocconi University 31 How to manage MA 1. Selecting most important markets Claudio Jommi, Novara and Bocconi University 32 How to manage MA 2. Clustering Regions (1) Regional pharmaceutical expenditure over health care funds (2009) compared with Italian average (17.9%): the target is 15.7%) Health care deficit / Pharma deficit Regional per capita health care deficit (2001 – 2008) compared with Italian average (540 Euros, Target = 0) 0 Critical 15.7% Most critical Lazio Lombardia Less critical Critical Claudio Jommi, Novara and Bocconi University 33 How to manage MA 2. Clustering Regions (2) Retail pharma deficit / Hospital pharma deficit Pharma hospital expenditure over health care funds (Target = 2.4%) Pharma retail expenditure over health care funds (Target = 13.3%) Most of the Southern Regions 7.0% 5.0% 3.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 1.0% Claudio Jommi, Novara and Bocconi University 34 How to manage MA 2. Clustering Regions (3) Critical therapeutic categories the example of antiulcer drugs (2009, DDD/1,000/die) Source: Aifa, 2010 Claudio Jommi, Novara and Bocconi University 35 How to manage MA 3. Supporting appropriately Regions Advanced Regions (eg Veneto) • Providing data required (regional BIA) • Advocating for a broader utilisation of economic evaluation • Stressing critical issues deriving from cost per DDD / therapeutic cycle • Participating, if possible, to cost analysis using regional administrative databases Less advanced Regions (most of the Southern Regions) • Providing, if possible educational programmes on HTA, Economic Evaluation and BIA • Advocating for (i) a focus on health care spending deficit instead of pharma budget and (ii) a broader utilisation of BIA Claudio Jommi, Novara and Bocconi University 36 How to manage MA 3. Supporting appropriately Regions (2) For all Regions • Promoting collaboration instead of creating conflicts between regions and hospitals and between clinicians and other professionals (hospital director-general and pharmacists) • Supporting guidelines that have been issued by independent actors to perform economic analysis (eg the Italian Association of Health Economics (AIES) has recently - http://www.aiesweb.it/ issued guidelines for economic evaluation studies, addressed to regulatory authorities) Claudio Jommi, Novara and Bocconi University 37 The Case of England Steven Flostrand Creativ-Ceutical Description of PCT structures 152 Primary Care Trusts in England PCTs provide or buy primary and community services, and are involved in commissioning secondary care Responsible for ~80% of the NHS budget 39 PCT vs. National Responsibilities National Responsibilities PCT Responsibilities Licensing via the MHRA Pricing, profit controls, via the PPRS Technology appraisal via NICE PAS negotiation via NICE Standards of care via NSFs Formulary decisions via Drug & Therapeutic Committees Prescribing mix PAS administration Access rules Procurement Use of non-NICE reviewed drugs 40 Case Study: PCT Clustering in England Our client launch a next-generation drug, replacing its own blockbuster that had lost patent protection Uptake of the new drug varied – – – Despite significant efforts, sales in the UK remained very low Sales levels were unequal across the different PCTs Differences did not correlate to commercial effort levels Creativ-Ceutical was retained to evaluate the PCT landscape to determine the source of differences, and to recommend strategies to optimise resource allocation and growth 41 Initial Findings Significant local barriers to drug usage were found – – – – Limits to prescribing within drug class Different levels of PCT interest in treating the disease Different resources to manage the disease Differences in PCT management with an impact on drug usage Determining the drivers of drug usage differences required an in-depth understanding of which PCT practice and behaviour represent an opportunity to improve the drug position This required a proper typology of the PCTs, to improve understanding of the landscape and support the strategy to be implemented, to improve the level of positive recommendation and use across priority PCTs 42 Available Information A large number (>100) of variables were available for analysis from company, public and proprietary sources* Primary Care Trust differences across this large range of variables allow differentiation A typology is possible that allows strategic segmentation and targeting POPULATION PROFILE Age, Deprivation, Foreign-born, etc. PRESCRIBING Innovativeness index, Black triangle & AD prescriptions, specific class and drug guidance, etc. PATIENT MANAGEMENT Medicine Management, ScriptSwitch (generic substitution), Sophistication Index, etc. ECONOMIC & FINANCIAL Recurrent Baseline Allocation, Closing Distance from Target, Draft Accounts Outturn Turnover, etc. ORGANIZATION Disease area as a priority, QOF ratio, disease prevalence, etc. 43 * Health Direction OnerKey+ data, Datamonitor, IMS, public data from PCTs… Methodology England data analysis for 152 PCTs For quantitative variables, a Principal Components Analysis (PCA) was conducted For qualitative variables, a Multiple Classification Analysis (MCA) was conducted Then a cluster analysis was conducted 44 Clustering Results for England 5 different PCT clusters were identified for the 152 PCTs studied* Cluster 1: n=20 Cluster 2: n=61 Cluster 3: n=4 Cluster 4: n=14 Cluster 5: n=53 * Cluster analysis is unique to each disease and to the market context; results cannot be applied elsewhere 45 Cluster Descriptions Analysis revealed significant variation among PCTs driven by demographic and disease incidence differences 46 Cluster Descriptions Analysis revealed significant variation among the PCTs driven by practice management and local initiatives 47 Cluster Descriptions Analysis revealed significant variation among the PCTs driven by other factors such as prescribing technology adoption 48 Cluster Summary Profiles CLUSTER 1 CLUSTER 2 CLUSTER 3 n=20, pop=4 939 000 n=61, pop=17 499 000 N=4, pop=1 266 000 GPs are less concerned by objectives or budget constraints, and tend to prescribe category drugs in a more autonomous way Concerned about disease area, highest recognition of disease and high category prescriptions. Prescribing managed to optimize both generic and innovative medicines. Focused on financial objectives and spend. High focus on disease area but few patients and low care; disease poorly recognized and treated. Doctors use innovative medicines freely and PCTs are significantly overspent. CLUSTER 4 CLUSTER 5 N=14, pop=3 296 000 N=53, pop=23 868 000 Low focus on disease, low disease recognition, lowest prescribing of category per patient. Concentrated on practice management: highest use of Scriptswitch, low use of innovative medicines. High level of disease recognition and category prescriptions, but disease not a priority. PCT focus on cost-containment, with high level of Scriptswitch use and very low penetration of 49 innovative medicines Cluster Potential Assessment 2 sources of leverage exist – – Opportunities to increase the market share where clusters are open to drug prescribing Priorities are given by the cluster analysis Opportunities to increase the total prescription mass by exploiting • • – Level of disease recognition Level of drug prescriptions per patient Needs a specific sales analysis 50 Cluster Potential Assessment CLUSTER 1 CLUSTER 2 CLUSTER 3 CLUSTER 4 CLUSTER 5 # PCTs Total population in cluster Level of disease recognition # of Rx’s per diagnosed person per year 20 61 4 4 939 180 17 498 921 1 265 979 14 53 3 296 078 23 868 380 4.16% 5.62% 3.43% 4.53% 4.97% 11.36 15.01 15.69 10.52 14.47 51 Cluster Potential Assessment “Level of disease recognition” ≠ “prevalence” but was used as a fair proxy of disease prevalence Number of drug category prescriptions per person with disease per year based on ratio Denominator ≠ number of treated patients, but also a fair proxy Number of drug category prescriptions Number of patients with disease 52 Sales Development Potential per Cluster CLUSTER 1 CLUSTER 2 CLUSTER 3 n=20, pop=4 939 000 n=61, pop=17 499 000 N=4, pop=1 266 000 Sales increase >20% No sales increase Sales increase >35% CLUSTER 4 CLUSTER 5 N=14, pop=3 296 000 N=53, pop=23 868 000 Sales increase >10% Minor sales increase 53 Case Study Conclusions Cluster analysis identified real opportunities for different business approaches – Two attractive clusters • • – – – Cluster 1 by direct GP targeting Cluster 4 by second-line formulary inclusion Cluster 3 was identified as respondent to disease education Cluster 2 was identified as optimised with current efforts Cluster 5 was identified for disinvestment Our client was able to shift resources from cluster 5 (primarily rural) to clusters 1 and 4 (primarily urban) and select more appropriate market access efforts 54 From PCTs to GP Consortia… Will Clustering be More or Less Important? Current number of PCTs = 152 – – PCTs will be progressively abolished by 2013 GP consortia will shadow then replace PCTs GP consortia size will vary – – First examples cover from 40,000 – 70,000 lives RCGP and GPC recommend 500,000 lives Range of consortia*: from 102 to… 1002? Regardless of their number, clustering will still be important when addressing GP consortia * Based on population in England of 51 million 55 The Case of Sweden 258,904 256,710 Sweden – 21 Counties 130,705 249,299 280,717 280,575 294,415 267,600 256,901 411,320 273,822 1,488,709 327,266 273,537 1,803,377 177,149 57,248 236,501 1,156,070 57 150,625 Three Pricing Principles Human – Equity of all human being and integrity of every individual Need – and solidarity principle People in greater needs take precedence for pharmaceutical reimbursement Cost – Value Principle effectiveness principle Cost of medicines should be reasonable from medical, humanitarian, and socio economic perspective 58 P&R Processes No – – price negotiations TLV accept or reject the company price offer TLV define restrictions of use and national contracting County Councils (CC) pay for all in-patient medicines CC receive a government grant to cover out-patient medicines 59 County Council Leverage (1/2) CC do not decide on prices and reimbursement and are not allowed to negotiate rebates CC only influence volumes and type of drug used (via incentives) Drug and Therapeutic Committee (DTC) – – – Define first line treatment options Develop guidelines Send “sales representatives” 60 County Council Leverage (2/2) Guidelines on prescription volume Substitution policies Restriction on contact between Industry and Medical Doctors Cap on reimbursement of expenditure for doctors invited to scientific conferences (50%) Ban on sponsoring and participation to social activities, etc. This is county specific and a source of controversy 61 Comparison of the Profiles of County Councils in Sweden 62 Conclusions and Discussion Regional Market Access Discussion How to address heterogeneous and atomised regional markets? – – – – Do you know your regional segmentation? Do you have a typology of your market? How do you address this issue? Role of Corporate vs. (multi-country) Region vs. Affiliates? 64 Potential Solutions Strategy development at an international level: HQ or Region (EU for example) Create a trans-national typology of Regional Markets Define 5 to 7 different access strategies that are consistent with marketing messaging, are actionable and sustained by the evidence Deploy locally and share learning across similar regional markets 65 Thank You! Mondher Toumi PhD, MD, Professor of Decision Sciences University Claude Bernard Lyon 1 Lyon, France Email: mondher.toumi@univ-lyon1.fr Tel: +33 6 8666 3550 66