THE VALUE OF

THE VALUE PROPOSITION

At the recent Pharma Pricing & Market Access Congress, senior representatives from
England’s National Institute for Health and Care Excellence (NICE) told the audience
of pharmaceutical and medical device manufacturers that the value proposition for a
product is “vital.” It was striking to hear decision makers talk about value propositions, an
industry-centric term, and the message was clear — external stakeholders see a product’s
value proposition as central to their dialog with manufacturers. Decision makers want to
understand the value proposition for a product just as much as the manufacturers want to
communicate it. This supports Covance’s long-held belief that a value proposition should
not be seen as a ‘nice-to-have’, or its development a one-off exercise. Rather, the iterative
refinement of a scientifically robust, focused value proposition should be considered central
to the success of a product.

Leveraged effectively, value propositions can:

▶▶ Capture and present the evidence for a product, positioning it relative to, and
differentiating it from, relevant comparators
▶▶ Act as a consistent narrative backbone for communications with the many stakeholders
who will make and influence market access decisions
▶▶ Highlight gaps in the current evidence, informing an evidence generation plan

Evidence Value Value

Generation Proposition Communication

Unmet need:
What is the problem that needs to be addressed?
What are the limitations of current therapy options?

Clinical and humanistic evidence:

What is the product? What impact does it have on clinical and patient
outcomes? How is it differentiated from current therapy options?

Economic evidence:
Does the product offer value for money? Is it affordable?
Does it improve the efficiency of healthcare delivery?
WHAT MAKES A GOOD VALUE PROPOSITION?

An early start. A value proposition is fundamental from the get-go of product

development. In a two-way relationship, aspirational value messages that reflect desired
product positioning can be informed by, and themselves inform, the design of the
clinical development program.

Robust evidence. Data quality is scrutinized by decision makers so it is paramount that

evidence-generation activities result in robust and credible data.

Focused differentiation. A value proposition should help decision makers see the forest
for the trees. To do this, it must be focused to the product’s desired positioning and the
evidence that differentiates it from competitors.

Ongoing refinement. As new data are generated and the landscape shifts, a value
proposition should be reviewed, adapted and refined to remain relevant and continue
to guide evidence generation.

Flexibility. A value proposition needs to be sufficiently flexible to allow the tailoring

and adaptation necessary to meet the varied needs of numerous stakeholders across
multiple markets.

Collaboration. A value proposition should combine strategy and data from various
functions within a manufacturer organization, including those with health economics,
market access, commercial and medical responsibilities. Robust value propositions
aren’t created in a vacuum — in our experience, they are most successfully developed
with cross-functional involvement.

Validation. The most relevant way to understand the potential impact of a value
proposition on real-world decision making is to test it with real-world decision makers.
External validation of a value proposition can give valuable insight to refine messaging
and help prepare for potential real-world discussions.

Effective communication. The commercial success of a product relies on the value

proposition being communicated successfully and consistently to all relevant decision
makers and influencers. To effectively tell your story, messaging must be clear and
relevant, and the communication channel appropriate and engaging.

Regardless of where you are in a product’s lifecycle, Covance Market Access can help you realize
the potential value of your product’s value proposition. Our teams combine consultants with
expertise in evidence generation, market access strategy and value communication. This gives us
the skills and understanding to be effective partners to help you develop, refine, tailor, validate
and communicate your product’s value proposition.

COVANCE MARKET ACCESS

Experience Forward Thinking

Covance Inc., headquartered in Princeton, NJ, USA, is the drug development business of Laboratory
Corporation of America Holdings (LabCorp). COVANCE is a registered trademark and the
marketing name for Covance Inc. and its subsidiaries around the world.
The Americas +1.888.COVANCE (+1.888.268.2623) +1.609.452.4440
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