Better risk/value decisions are the essence of a more effective healthcare delivery system, according to the New Health Report 2012 commissioned by Quintiles, the world’s leading biopharmaceutical services company.

The key highlights of the Report 2012 was the lack of consensus within biopharma about whether companies should accept more risk. There was need for better metrics to assess risks and benefits accurately for all stakeholders. The pre-competitive alliances and risk-sharing agreements, supported by both biopharma, players and providers were seen as having potential to produce more innovative and effective therapies. Many patients with chronic diseases were willing to accept greater risks for greater benefits,especially in the UK.

In its third year, the New Health Report offers perspective and insight into key topics to help the healthcare industry’s key stakeholders better understand the dramatic changes occurring within drug development and commercialization. The issues examined are central to an industry under immense pressure to demonstrate product value and make better risk/value decisions in order to drive improvement in public health. This year’s report surveyed more than 1,350 US- and UK-based biopharmaceutical executives, executives from payer organizations, life-science investors and patients being treated for a chronic illness.

These healthcare stakeholders have different perceptions of risk and benefit. The New Health Report highlights that more than half of US payers, National Health Service (NHS) executives and investors agree that biopharma needs to take on more risk to improve biopharmaceutical agents and public health. In contrast, 65 per cent of biopharmaceutical company executives believe that they should either reduce their current risk profile or maintain it.

New metrics to assess the risk/value trade offs also may help to improve navigation through what is perceived to be a challenging regulatory environment. Despite eight out of 10 biopharma executives being optimistic about the quality of prescription medications in 10 years, the greatest number cited a more difficult regulatory approval process as their organization’s biggest challenge. Another 20 per cent consider access to capital as their primary challenge. Investors agree, with 56 per cent citing a more difficult Food and Drug Administration approval process or rigid regulatory environment as the biggest challenge facing the biopharma industry.

Despite the perceived difficulty in securing drug approval, large numbers of payers in both the US and the UK wanted more involvement at every stage of the drug development process. For preclinical testing, only 18 per cent of the UK payers claimed current involvement and the same was among the US payers.

“Biopharma must find a way to work with a stakeholder that is better versed in risk/benefit tools and methods,” said John Doyle, vice president and managing director with consulting at Quintiles. Seventy-two per cent of US patients were of the view that they should be able to choose to take a potentially risky medication even if it is not approved for use as they saw it as their only chance to improve their health. In the UK, patients showed a greater tolerance for risk, as 81 per cent shared this sentiment.

The results suggested ways forward to help stakeholders mitigate risk throughout the drug development lifecycle. According to Dean Summerfield, vice president and managing director with consulting at Quintiles biopharma could take steps today and in the future to mitigate risk at each stage of the development and commercialization process.