Build Your Product Value Proposition Early
A compelling value proposition is built well before launch, when there’s still flexibility to potentially adapt the clinical trial program to meet the needs of future customers.
Companies whose goal is simply to license the compound or hope to be acquired by a larger company often take the path of least resistance and least expense.
In an environment where only 1/3 of new products become successful1, the expectation that prospective licensors or acquirers will not be concerned about the commercial potential of a new product is increasingly naive.
Companies often either ignore or learn too late what customers want, or they proceed forward with development of a me-too product hoping that marketing and sales will be able to garner some reasonable share of the market. Costly mistake. Financially and Managerially.
“There’s nothing harder than killing a product that has a development team that’s been working on it for years.”
– VP, Commercial Development, Biotech
“I can’t tell you how many products move forward because of sunk cost. I know I’m overfunding losers and underfunding winners.”
– SVP, Commercial Development, Big Pharma
The time to understand what constitutes value is early enough to be able to build those inputs into your clinical trial design. Increasingly, payers want to see head-to-head comparisons vs the current standard of care and outcomes data before they’re willing to commit to unrestricted product access. And, if the price of the new product is higher than the current products used to treat a particular condition, the requirements for evidence that the threshold for demonstrating that the new product offers real value is even higher.
Harris Kaplan is Managing Partner of Red Team Associates, a boutique life sciences consultancy, and CEO of Healogix, a life sciences marketing research company. His resume includes work on the introduction of more than 100 new products including drug, biotech, device, and diagnostics. He is a commercial strategist who frequently presents and authors pieces on how the shift from a provider to a payer and patient centric world impacts new product innovation. Harris’ understanding of these seismic shifts in the life sciences landscape has made him a leader in the space and much sought after by clients ranging from startups to large multinationals. Harris excels at helping companies develop their commercial and go-to-market plans in support of new products. He has also been an advisor to multiple venture capital and private equity groups relative to assist their portfolio companies.
Harris’ articles have appeared in In Vivo, Medical Marketing and Media, and Product Management. He has presented at Intellus Worldwide Institute, Windhover’s Therapeutic Area Partnerships, IN3 Device Conference, World Orphan Disease Conference, Life Science Alley, the Biotech Conference at UC Berkley, Pharmaceutical Strategy Conference, and the Drug Information Association. He was also nominated as one of Pharma Voice’s most inspiring people in 2011.
Harris Kaplan, Managing Partner
Red Team Associates