
PHARMAC's role within the New Zealand health system is well documented; its role is to make decisions on which medicines and related products are funded for the best health outcomes from within the available funding. PHARMAC’s sole aim is to get the best health outcomes from a fixed budget, to achieve this and get the most from the expenditure, access to the market is limited, which makes it valuable.
This is not news, and certainly, within the pharmaceutical supply, the topic of pricing is on everyone’s lips. The all-or-nothing approach to funding medicines heightens the risk and drives down prices.
Whilst this is a challenge, there are benefits most companies do not take advantage of.
The key benefit in this unique environment with limited competition and security of a contracted period a product will have exclusive access in NZ.
This exclusivity means companies don’t need to invest in resourcing across sales and marketing as they do in competitive markets, like Australia, but the majority of companies do just that. They focus on traditional measures like “share of voice”, competitive messaging, and positioning. When your brand is the only PHARMAC-funded product in a competitive free environment, your company is the only “voice” and clinicians prescribing is limited to the only reimbursed product, yours!
“Share of voice” does not make sense in this market. “I used to love going to global meetings when market share slides were presented, NZ would be at the top with 100% market share. Legendary!”
Not recognizing this advantage means companies spend and hire significantly more headcount than is necessary, impacting returns, and is not future-proof. In years to come when their product is up for tender, these very same companies can’t be competitive on pricing due to the investment and resource allocations made over time, and lose to new competitors waiting in the wings who have everything to gain and nothing to lose, and beat them on price every time.
Some companies try no resources in NZ and send representatives from Australia to cover NZ. This also has its challenges, their materials, and training are all designed to meet the needs of the Australian market. I know and have seen clinicians laugh at representatives who don't have a clue about NZ and the conditions or environment in which they are operating. This only makes the companies look silly in the eyes of their customers.
WellMed.NZ understands the market and knows the key activities necessary to be successful without investing significant resources. With a NZ team that understands the market and conditions and can have the right conversations with clinicians. We can help you win with PHARMAC and get the returns and ongoing results.
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