Pharma needs to evolve beyond drug centric models

The primary focus for pharma has always been the molecule and questions about the commercialisation value and profit margins of software services continue to provide fodder for digital health sceptics. However, with recent advances in customer interest in healthcare, pharma needs to evolve beyond drug centric models and play a larger role in the healthcare ecosystem by applying a holistic approach with technology as a door-opener for long-term customer trust. Platforms can provide a gateway to HCPs and can deliver greater value for patients beyond the brand. Thus, pharma should directly involve patients and health system partners to gather insights around specific needs and develop solutions accordingly.  

Ecosystem approaches involve integrating apps and initiatives from across an organisation into a broader network of interconnected digital health solutions. Ecosystem approaches can enable cross-collaboration across brand teams and sharing of insights which can benefit the organisation as a whole. Ecosystems are valuable because they acknowledge that people need more than one avenue of healing, support and guidance.

Ecosystem approaches also have the added advantage of removing brand-centricity. To quote from HealthXL’s recently released Pharma 3.0 report on doing digital health better, “Successful solutions in this space will ultimately be those that support patients beyond a single drug and across comorbidities to benefit in a cross-condition or cross-therapy capacity”.

Ecosystem creation is the north star, point solutions are the cornerstone

While the realisation of interconnected ecosystems in digital health remains a distant ideal, it's important to acknowledge the significance of individual point solutions as the first cornerstone towards a connected ecosystem approach. At times, standalone solutions are the right and most appropriate strategy in their own right especially in environments that are complex to navigate. Therefore, initiating a niche Proof of Concept (POC) tailored for a specific target audience could serve as the optimal initial step. As this POC evolves, it can gradually incorporate more comprehensive elements, eventually leading towards a more holistic solution. For instance, a remote patient monitoring solution could seamlessly evolve over time - through a POC study conducted with a small population over several months - into a comprehensive care management platform comprising a patient-facing app, integrated telemedicine capabilities, plugged into, and interoperable with, a care coordination platform and EHR systems.

Additionally, point solutions are also most appropriate when expediency is important or the problem the stakeholder is addressing manifests differently in different contexts thus requiring targeted and isolated interventions. As a brand matures, however, requirements for greater interconnectedness may need to be addressed. Therefore, ecosystem approaches can create value beyond the drug. However, incentive structures would fundamentally need to change to make this happen. In fact, oftentimes, the distal benefits of digital products are their strength given that they can majorly influence patient experience. 

Although pharma may have the right experience to launch and commercialise digital therapeutics (DTx), ecosystem approaches are not just hinged on DTx. Learnings from Pear Therapeutics would indicate that the market for DTx remains nascent and although pharma is likely to be the most appropriately resourced entity to drive this new category of therapy there are other areas they can potentially drive. There are many other categories of point solutions that may be suitable for pharma to play in - health and wellness apps, digital medicine programmes, and clinical decision support. Research has demonstrated that pharma ownership of point solutions does not deter usage or consumption, thus alleviating concerns that pharma-backed digital products may incite scepticism among patients and consumers. Therefore pharma should look beyond DTx and understand the value other types of point solutions may contribute to their ecosystem and their stakeholders. Including solutions for a variety of stakeholders - HCPs, patients, and health systems can demonstrate pharma's commitment to providing a holistic ecosystem for all players involved. 

Ultimately, digital health ecosystem stakeholder creation is a multi-stakeholder affair but pharma is a key shaper

Pharma is a key player in the healthcare ecosystem, providing life changing medicines to patients and as such will ultimately be a key stakeholder in shaping a digital health ecosystem. However, no one player can create an ecosystem alone – different stakeholders, public and private, need to work together and their work needs to be guided by a holistic perspective. With advancements in technologies and artificial intelligence over the last number of years, we are moving towards a data-driven healthcare experience. To facilitate this change, superior levels of connectivity and robust governance and leadership structures will be required. Therefore it is vital for stakeholders - pharma, HCP, payers, health systems and patients - to work together to help drive this critical change in healthcare. 

Much of ecosystem creation is about behavioral change and acceptance and to enable this, one entity must assume leadership and ownership. Pharma certainly has the clout and resources to spearhead this process, however, it remains to be seen if pharma is the right entity to lead the charge. But for now, pharma is a key shaper in building this digital health ecosystem. 

Authors: Steve Peretz, Healthcare Practice Lead, Digital Products, Appnovation and Angela Rosales, Group Director, Strategy, Appnovation.