Expanding in a Restricting World: Value Added Medicine

In every jurisdiction across the globe, spending in healthcare is under fire and medical interventions whether biopharmaceuticals or medical devices, appear at the epicenter. Many countries/provinces have been asked to limit any increase on their budget or find savings overall. Funding of medical interventions has been shifting in recent years to more of a commodity approach for many areas with it being difficult to demonstrate value behind incremental innovation. An additional challenge is the opposing force between policy makers and innovative researchers – both of whom have the ultimate goal of improved health and outcomes for patients. Over the last 15-20 years, the healthcare space has undergone tremendous growth and expansion through innovation and research. However, yesterday’s innovation is today’s commodity. HIV/AIDS in the 80’s was a breakthrough disease that had policy makers shifting their spend not only to innovative research and treatment but also to a change in infrastructure to accommodate the acute treatment of a disease that is now treated as a chronic condition mostly with medications off patent. Other more common illnesses have seen incremental innovation to address population health issues such as depression, type II diabetes, Crohn’s disease to name a few. Through this incremental innovation, disease states once treated at a high cost due to the limited treatment options and interventions, have become ones with multiple therapeutic choices with significant price decreases due to market saturation and loss of patent exclusivity. Specialized Treatments Fast forward to today where treatments are becoming highly specialized and the opportunity for incremental innovation correspondingly more complex and targeted. In doing so, we have numerous examples of breakthrough medications...