Pharmaceutical companies have tried out a variety of new digital business models in recent years. The digital retail model is one of the newest. PfizerForAll and Lilly Direct are already on the start line. Is the value proposition good enough and will other pharma companies follow?
The Pharma Digital Retail Model (PDRM) is a cutting-edge sales strategy in the pharmaceutical industry that leverages digital platforms to enhance patient access to medications, drive drug sales, and gather valuable insights into patient behavior. By streamlining the patient journey from recognizing health concerns (“What is my problem?”) to obtaining prescribed medication (“When and how do I get my medication?”) this model offers significant convenience and support. Read also “Digital Retail Platforms: The new concept of Pharma to sell directly to patients”
PDRM delivers a one-stop-shop value proposition through four core components and an additional supportive element, creating a seamless, end-to-end experience for patients. It focuses on specific therapeutic areas and integrates the pharma company’s own medications to provide a more tailored healthcare journey.
Key Components of PDRM
1. Be Informed
2. Find HCPs, Schedule Consultations, and Obtain Prescriptions
3. Optimize Reimbursement
4. Order and Shipment
5. Treatment Support
By integrating these components, PDRM enhances medication accessibility and provides comprehensive support to patients, reinforcing their adherence to treatment plans while improving overall health outcomes. This model represents a transformative shift in how pharmaceutical companies engage with patients, making healthcare more accessible, efficient, and patient-centric.
Benefits for Pharma:
The Digital Pharma Retail Model offers several key benefits to pharmaceutical companies, primarily driving increased drug sales, gathering valuable patient data, and enhancing retail margins.
The overall benefit depends on the size of the target group, the price of the medication, and the expected frequency of medication use. The number of medications and therapy areas on the DPRM platforms currently available on the market is still very limited. Therefore, expectations on the pharmaceutical side should remain realistic. This also considers another key aspect of DPRMs: the significant reliance on outsourcing.
Benefits for Patients:
The Pharma Digital Retail Model (PDRM) offers significant benefits to targeted patients, with convenience being the most notable advantage. By integrating essential healthcare services into a single platform for selected treatments, PDRM removes logistical barriers, provides cost-saving opportunities, and enhances health outcomes through adherence tools and behavioral support programs. This approach empowers patients to manage their health more effectively by ensuring convenience, affordability, and better care.
From the patient’s perspective, the main drawback of PDRMs is the limited range of treatment options available. This model is particularly beneficial for patients who require ongoing medication, such as those with chronic conditions. However, as seen with Pfizer and Eli Lilly’s platforms, even medications requiring annual appointments or prescriptions are supported, expanding accessibility beyond just monthly refills.
Overall, PDRMs revolutionize patient access to medications, offering a more convenient, cost-effective, and supportive healthcare experience.
For pharma companies, DPRMs offer a relatively low-risk way to engage directly with their target customer base and drive sales. The success of this model will depend on which medications or medical devices prove best suited for it. It is likely that other pharma companies will follow suit, adopting similar platforms for their own businesses.
To learn more about the new business mode and how to implement it, download the new report here