In the biopharmaceutical industry, dialogue shifts from price-fixing to common goals of value-based and health-based care, value-based partnerships (BPVs) are created between producers and payer and supplier organizations. These partnerships enable partners to jointly develop programs, solutions and initiatives for the benefit of patients and the health system and to expand scientific knowledge in a therapeutic field. Whenever organizations enter into such a partnership, the due diligence process is important on both sides. You want to make sure that you have the right partners on board and that each partner understands the roles and responsibilities and is properly equipped to meet expectations. For Magellan, it was important to involve Magellan Rx Management`s executives, including representation of Magellan Method, clinical strategy, special strategy, legal, compliance, investor relations, business relations, account management, marketing and government affairs. Magellan Rx Management looks after a large number of clients and it is important to understand the potential impact of a partnership across the entire product portfolio. It is therefore necessary to involve different stakeholders in order to assess the relationship, the desired results and the implementation strategy, in order to ensure internal orientation and transparency. One of the reasons Amgen was an attractive partner was the commitment to bring these kinds of opportunities to fruition. Amgen has developed an entire business unit exclusively dedicated to VBP, including special legal and project management teams. This level of commitment and allocation of resources is not considered an industry practice, but this type of organizational commitment is why Magellan felt that Amgen shared our values in the search for innovative partnerships and the development of solutions that could be widely applied.
Barriers and opportunities in the adoption of value-based contracts What does it take to get there? There are several important considerations for speeding up the adoption of value-based contracts: if doctors are not involved in the awarding process and whether the negotiation of measures could influence the extent to which they source in the agreement.