From Demonstrating Product Value to Establishing Its Own Worth
TL/DR –
Health Economics and Outcomes Research (HEOR) in the biopharmaceutical industry requires optimizing organizational structure and workflow to meet rising demands for evidence. A 2024 benchmark of seven biopharmaceutical companies showed that the majority integrate HEOR functions into their commercial side, specifically within Value and Access teams, to generate and communicate scientific evidence of value. The study also revealed that the absence of robust metrics demonstrating HEOR’s value, underutilization of HEOR experts in strategic decision-making, and failure to fully align HEOR evidence with internal stakeholder needs limit the discipline’s impact.
HEOR in the Biopharmaceutical Industry Under the Spotlight
Despite being established for 50 years, Health Economics and Outcomes Research (HEOR) is attracting more attention in the biopharmaceutical industry due to rising drug prices, tighter payer budgets, and increased competition. Changes like the Inflation Reduction Act (IRA) and European Union Regulation on Health Technology Assessment (EUHTAR) reflect the demand for solid evidence to support healthcare decision-making. To meet these demands, HEOR functions must optimize their organization and methods to efficiently deliver marketplace impact.
A Benchmark of HEOR Organizations
In 2024, we conducted a benchmark of HEOR organizations based on information from seven biopharmaceutical companies. This study filled a gap for a more comprehensive review of the HEOR function at an inflection point where many HEOR groups are experiencing organizational shifts.
Organizational Structure and Positioning
Our review showed that most pharmaceutical companies organize their HEOR functions within the Commercial side, specifically Value and Access teams. This helps better align value evidence generation with market access strategies. The HEOR functions in our study were also centralized, with no regional models in our sample.
Team Characteristics and Capabilities
HEOR functions require a diverse team due to the broad scope of disciplines and applications. All HEOR functions in our study had highly credentialed teams, but identifying career pathways for specialist roles was identified as a key gap.
Ways of Working
HEOR functions need to collaborate closely with cross-functional internal stakeholders to ensure the relevance of their generated evidence. However, many internal partners struggle to grasp the full scope of HEOR’s role and its relevance to their work. This is compounded by the absence of robust metrics that could effectively demonstrate HEOR’s value.
Conclusion
There is a need for senior leaders to prioritize enhancing HEOR translation capabilities, investing in impact metrics, and tailoring the HEOR value proposition to individual internal partner functions. By addressing these areas, HEOR can align better with organizational goals and respond effectively to access landscape challenges.
—
Read More US Economic News