Market Access is key to investment

Recent journal article highlights the financial need for early market access and reimbursement strategies toward a company’s deal-making opportunities.

The Journal of Comparative Effectiveness Research recently posted an article titled “The need to consider market access for pharmaceutical investment decisions: a primer,” and it offers fundamental financial and directional information for market access professionals to consider, as well as pricing folks and the biopharma investment and dealmaking community.

According to the paper, “the integration of market access considerations into revenue forecasting and ultimately net present value (NPV) calculations will become, if it is not already, of fundamental importance to all investors and drug developers.”

Therefore, the paper suggests that the effect of increased sophisticated HTA processes, as well as the growing reimbursement data required by health payers in the United States, will become a pressing concern in the biotech investment community.

The paper continues: “As investors become more sophisticated in evaluating market access strategies, the quality of market access planning will become as important as clinical data in determining which products receive funding. Companies that treat market access as a strategic function rather than a tactical one, who believe that market access is a science that requires years of experience and expertise to perform, and who engage market access expertise early in development are better positioned to secure investment and achieve commercial success for their assets.”

Hat tip Brian Reid for this article reference in his newsletter.