Commercial Strategy for the US Hospital Market

Clear and ongoing communication with the client was key to aligning commercial strategy with a patient-centric organizational vision.

The client was 18 months away from launching a new drug for the US hospital market. The team asked DRG to help develop their commercial strategy.

Specific questions included:

  • How should we segment and prioritize hospital accounts based on utilization and procedure patterns for priority indications?
  • What are the most important attributes of the product and how do different combinations of these attributes impact potential use of the product and formulary inclusion?
  • How do we develop and deliver a value proposition that will resonate with both target institutions and target providers as quickly as possible?
  • What are the approximate price ranges to consider and how will price impact adoption?
  • What is the opportunity for the product under various product and pricing scenarios?
  • How should we approach launching the product (e.g., internally build, outsource, co-promote, etc.) and how big should the account team be at launch?

A unique and fully customized apporach was developed to solve these specific challenges, which included the following methodological approaches:

  • Qualitative interviews and quantitative primary research with a broad cross-section of stakeholders
  • Conjoint development and analysis, including market simulation
  • Price/volume trade-off analysis with revenue optimization
  • Analysis of DRG in-house and external data including hospital chargemaster and formulary data, and claims data such as CMS, HCUP, etc.

Delivery included integration of data and findings into a comprehensive package including a full report, an analysis of products launched into the hospital space, a prioritized database of accounts, a dynamic forecast linked directly to conjoint simulator, and a board-ready executive summary.

Supported by DRG’s findings, the client was able to:

  • Secure board approval for investment in a commercial field force of their preferred size
  • Develop a commercial strategy aligned with organizational values and commercial goals
  • Target high-potential accounts at launch
  • Make informed decisions around pricing of the new product
  • Refine and pursue access/reimbursement strategy