The Canadian Specialty Pharmaceutical Market: Joint Value Creation, Innovation and Operational Excellence Required

July 2017

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High-cost specialty pharmaceutical products accounted for 30 per cent of total Canadian private-plan drug spending in 2016.1 With the new drug pipeline projected to be dominated by specialty medications in the coming years, this figure will only increase. Biologics, biosimilars, complex therapies, concerns about their high costs and payer sustainability are now the new normal in the pharmaceutical landscape. As the Canadian pharmaceutical industry ecosystems transition from the management of traditional simple molecule medications to supporting complex specialty therapies, the question you must ask is: Are you and your organization taking the necessary steps to face these changes from a leadership position to successfully carve a path forward in this brave new specialty world? 20Sense has identified key issues that pharmaceutical stakeholders should consider.

Understanding how to navigate this rapidly evolving landscape is critical. Learning from specialty market challenges in the United States, where the mantra “one size does not fit all”2 is now the leading school of thought, Canadian specialty stakeholders must proactively search to innovate and lead in this country with carefully planned and executed strategic initiatives.

Manufacturers must examine and challenge traditional commercialization strategies to account for the new complexities of the specialty environment. Crucial to success will be the ability to identify and align with strategic specialty partners that best enhance the patient’s journey. New and innovative approaches to procurement, pharmacy, patient support programs, real-world evidence generation and data collection will be necessary to deliver optimized and sustainable outcomes – both for the benefit of patients and to meet business objectives.

Specialty service providers must challenge the status quo and shift traditional vendor relationships to become strategic joint value creation partners with manufacturers. This requires not only the therapeutic expertise and operational excellence to deliver pharmacy services, patient support programs and reimbursement activities, but also the vision and capabilities to maximize opportunities to generate mutual wins for all parties – while always delivering unmatched value and services to patients.

The complexity and challenges within the Canadian specialty pharmaceuticals market are only increasing, and patients are counting on industry stakeholders to continue to deliver new solutions for critical unmet medical needs. Joint value creation, innovation and operational excellence will be required to do just that.


References

1 Herbert, J. & Po, P., “Express Scripts Canada Drug Trend Report 2016” (2017).

2 DiMascio, S. (Producer), “How the Pharmaceutical Industry Can Achieve Sustainable Product Success in Specialty Pharmacy,” Ep. 48 of The Specialty Pharmacy Podcast, (originally aired February 21, 2017).

https://www.csigroup.net/podcasts/pharmaceutical-industry-can-achieve-sustainable-product-success-specialty-pharmacy/

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Canadian Specialty Pharmaceuticals Stakeholders: Specialty Service Providers