6 Reasons Why Advanced Analytics Is Essential In Pharma
It’s no secret that technology has had a major impact not only on our daily activities, but also on businesses in almost every industry.
The pharma industry, in particular, has seen major changes throughout many operations due to the implementation of technology.
Technology such as Artificial Intelligence has improved drug discovery while Cloud Computing has proven to be very beneficial with communication and storing files.
However, another type of technology that has been proven to be very beneficial is commercial pharma analytics.
According to Market Research Future, the global commercial pharma analytics market is expected to reach about $9 million by 2027.
While statistics such as the one above show evidence that analytics in pharma is in popular demand going forward, some may wonder, how exactly can you benefit from this technology?
Below are 6 key reasons why commercial pharma analytics is beneficial:
1. Efficient Drug Development
Pharma analytics have proven to be extremely beneficial when being used for drug development. The process of drug development is long and costly, as it can take up to 10 years to develop a single drug while costing billions of dollars.
According to a report by Tufts Center for the Study of Drug Development, it can cost up to $2.6 billion to fully develop a drug.
Advanced analytics enables drug development to run efficiently and effectively by being able to identify potential drug candidates that have a high potential for success and develop them quickly.
Also, patient data can be used to identify connections and patterns that help develop precision medicine.
Large data-sets from numerous sources ranging from clinical trials to patient health records and insurance claims to develop drugs suited for different populations can be used.
2. Optimize Clinical Trials
Pharma analytics can be used to successfully optimize the efficiency of clinical trials. Not only are clinical trials expensive, but they are also very time-consuming.
The average cost of clinical trials for approved drugs was reported to be $19 million by researchers from Johns Hopkins Bloomberg School of Public Health and it can even take up to 15 years to complete!
Using advanced analytics, you can reduce the costs of clinical trials and much less time-consuming by identifying the most appropriate patients to take part in the trial using various sources.
37% of clinical trials fail because they don’t have enough eligible patients.
The patients are vetted based on demographics, historical data, and complex criteria such as genetic makeup and individual characteristics. This way clinical trials can be run more efficiently and at a reduced cost.
Decision-making is another area where advanced commercial pharma analytics can be very beneficial. As the trend towards data-driven decision-making gains momentum, it’s important for pharma companies to follow suit, or they’ll be left behind their competitors who are doing so!
With that being said, how can you possibly make the best decision if you’re not presented with the right options to choose from? That’s where pharma analytics come into play!
Pharma companies can use advanced analytics to attain insightful information on patients, market trends, and other relevant data to inform decision-making. They can make important decisions on drug development such as the type and amount of the drug to be developed.
Also, opportunities in the market can be identified and commercial activities can be monitored with pharma analytics. Prioritizing drugs is key and with this technology, you can establish the effectiveness of one drug compared to the other.
Combined with machine learning and artificial intelligence, advanced analytics help provide invaluable information that can make it much better for patients and improve health outcomes.
Many pharma companies embrace advanced analytics to improve decision-making with their budgeting.
You can use advanced analytics to identify areas in your supply chain that require improvements. It can be anything from streamlining the supply process to negotiating better rates and projecting future patient needs.
Remarkably, pharma analytics can help measure performance in relation to other competitors. The data obtained can be used to devise strategies to increase competitiveness and performance.
4. Cost Reduction
Advanced analytics provide you with the best resources and tools available to make the right decisions every time, which in the long run will save your pharma company a lot of money. Who wouldn’t want to save money?!
In an article by PA Consulting Group, a pharma client of theirs spent 75% of their sales efforts on tasks that weren’t viewed as a top 10 priority.
Spending valuable time on tasks that aren’t at the top of the list of priorities can result in wasted time and even increased costs! Thankfully, pharma analytics can help you choose the right tasks to complete in the correct order!
Pharma analytics not only can be used to reduce commercial costs, but clinical trials costs as well.
Implementing advanced analytics can reduce the cost of clinical trials by up to 15% according to McKinsey.
Making the right decision is a critical part of reducing costs. Advanced pharma analytics ensure you have the necessary tools presented in front of you to make the right decisions and increase efficiency and effectiveness.
5. Increased Sales Growth
Sales growth is another key area where commercial pharma analytics can be very beneficial.
McKinsey Global Institute affirms that big data strategies have the potential to generate a value of $100 billion each year as a result of better decision-making, greater efficiency of clinical trials, and superior innovation.
You can use pharma analytics to identify opportunities in the market and capitalize on them. For example, using available data, you can determine patient populations that are undeserved and develop drugs for them.
According to a recent survey by WNS DecisionPoint, 71 percent of sales teams and 82 percent of marketing teams use analytics extensively.
6. Improving Collaboration
Traditionally, HCPs have been left out of patient health records. Pharmacists were only given pieces of paper with the required prescription.
This made it hard for HCPs to offer patients holistic and personalized care to the best of their ability.
However, with electronic health records (EHR), healthcare providers can collaborate to offer patients personalized care.
When HCPs have access to all of the patient information available, they can make more accurate recommendations on treatment options.
Also, pharma analytics provides better communication and collaboration between research groups, healthcare providers, insurers, regulators, and patients to offer patient-centric and additional care.
Making the decision to implement technology such as commercial pharma analytics is not an easy choice and we understand that! However, the benefits of this technology can elevate your pharma company to new levels!
To recap some of the benefits pharma analytics can provide your pharma company with, they are:
- Efficient Drug Development
- Optimize Clinical Trials
- Assist in Decision-Making
- Cost Reduction
- Increased Sales Growth
- Improved Collaboration
Also, if you’d like to learn more about our pharma analytics solution, contact us for free below!