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Benchmarking the Pharma Industry's HEOR Functions

  • October 2013
  • -
  • Industry Standard Research
  • -
  • 55 pages

This report provides pharmaceutical and biotech organizations an opportunity to benchmark their own Health Economics and Outcomes Research (HEOR) approaches against that of Top 50 Pharma companies. ISR details best practices, common approaches, as well as explains alternative styles so companies can use these assessments as a yard stick against which to measure, modify, and improve their own HEOR structures.

What you will learn in this report:
- HEOR department operations and structuring, including:
HQ and regional structuring models
Headcount
Organizational alignment with Medical Affairs, R&D, and Market Access
Division of work
Headquarters vs. in-country affiliates
“Centers of Excellence”
Involvement in pricing and reimbursement
Outsourcing and vendor selection
Annual product budgets
Challenges
Future Predictions
Best Practices
Recommendations
- Qualities of successful HEOR employees, as well as professional development and group structuring strategies to improve HEOR functional effectiveness
- Ways to optimize HEOR work during clinical development delays by identifying barriers and understanding ideal timing of HEOR project kickoff, design, and execution

How you can use this report:
- Learn from on-the-ground professionals to develop successful and timely HEOR programs that seamlessly integrate with Research & Development to establish a persuasive product narrative
- Benchmark the structuring of HEOR resources against Top 50 Pharma to optimize group effectiveness and improve resource development
- Identify best practices, recommendations, and challenges for all aspects of HEOR as described by 1 Vice President, 15 Directors, and 1 Group Manager within Top 50 Pharma

Table Of Contents

Benchmarking the Pharma Industry's HEOR Functions
Table of Contents

Copyright and Usage Guidelines 4
Methodology ..5
Interviewee Company Size .5
Interviewee Titles 5
Interviewee Responsibilities ..6
Potential Best Practices 7
Introduction .8
Understanding the HEOR Function ..9
Infographic ..10
HEOR Employees ..11
Educational Background ..11
Employee Qualities .12
Key Takeaways ..13
HEOR Work ..14
HEOR Goals .14
Clinical Trial Involvement .15
Actual vs. Desired HEOR Involvement Timeline 16
Barriers to Earlier Involvement .16
Key Takeaways ..17
HEOR Department Benchmarking .18
Infographic ..19
Division of Work 20
Headquarters vs. Affiliates . 20
In-Country Affiliates 20
Work within Headquarters .21
Therapeutic Area / Product Alignment .21
Centers of Excellence .22
Products in Development vs. Commercialized Products .22
Workload Equalizing ..23
Pricing and Reimbursement 24
Pricing and Reimbursement Responsibilities Spectrum ..24
Desire for Clarity ..25
Key Takeaways ..26
Department Structure 27
Common HEOR Headquarters Structure .27
Alternative HEOR Headquarters Structure .29
Regional Structures .29
Headcount ..30
Number of Worldwide HEOR Employees .30
Key Takeaways ..31
Organizational Alignment 32
Medical Affairs ..32
Research and Development 33
Market Access 33
Comparison of HEOR Locations 35
Key Takeaways ..36
Outsourcing .37
Is Department Size a Factor? .37
Proportion of HEOR Work Outsourced by Company Size 37
Why Outsource? ..38
Lack of Capacity or Technical Expertise 38
Data Needs ..38
Credibility .39
Strategic Focus ..39
Vendor Selection ..40
Vendor Selection Process 40
Vendor Attributes 41
Work-Related Attributes ..41
Customer Experience Attributes ..42
Key Takeaways ..43
Product Budgets 44
Product Coverage 44
Funding Source .44
Product-Level HEOR Spend .46
Low-End Annual HEOR Spend Per Product .46
High-End Annual HEOR Spend Per Product 46
Key Takeaways ..47
Challenges 48
Stringent Payers 48
Skepticism of HEOR Work 49
Objectivity 49
Communication .49
Workload .50
Key Takeaways ..50
Future Predictions 52
Summary: Potential Best Practices .53
Recommendations ..54
About Industry Standard Research 55

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