Adding value with the role of 'translators' in Real-World Evidence

In their insightful article, McKinsey & Company highlights the transformative role of real-world evidence (RWE) in the pharmaceutical industry, referencing one of our expert's own RWE studies to illustrate this evolution. As pharmaceutical companies increasingly prioritise patient outcomes, they are expanding their focus beyond randomised clinical trials (RCTs) to harness the power of advanced analytics in RWE generation. This article explores how industry leaders can continue to innovate in this space, and how others can follow suit to keep pace.

To inject medical, clinical, epidemiological, and business rigor into every process, industry leaders also need “translators” who understand how RWE operates and delivers value.

As the healthcare landscape shifts towards outcome-based metrics, pharmaceutical companies are recognising the limitations of traditional clinical trials in demonstrating their value. RWE has been utilised for many years, but with recent advancements in digital technology and analytics, its applications are becoming more sophisticated and impactful. By analysing patient characteristics and behaviours, RWE can enhance our understanding of disease progression, treatment responses, and the likelihood of adverse effects, while simultaneously streamlining research and development processes and shortening time to market. For organisations looking to leverage advanced RWE analytics, establishing the appropriate frameworks and capabilities will be crucial for success.

The Shift from Basic to Advanced RWE

The current healthcare environment is characterised by heightened cost pressures, technological advancements, and evolving regulatory landscapes, prompting stakeholders to prioritise value and patient-centric outcomes. Payers are increasingly adopting outcomes-based contracts, providers are vying for favourable relationships with them, and patients are taking a more active role in managing their health outcomes. In this dynamic context, RWE insights are critical for delivering the right treatment to the right patient at the right time, as well as for measuring and demonstrating the effectiveness of various interventions. The COVID-19 pandemic has further underscored the need for swift insights into patient populations and treatment options, placing RWE directly in the healthcare spotlight.

For decades, pharmaceutical companies have relied on RWE to guide their strategic decisions and enhance their market positioning. Recent trends, such as regulatory advancements and growing acceptance from payers and healthcare providers, have allowed companies to unlock even greater value from RWE. For instance, Pfizer's use of electronic medical record (EMR) data to secure approval for Ibrance in treating male breast cancer, and AstraZeneca's demonstration of the effectiveness of its diabetes drug Farxiga through real-world data—executed by our RWE expert Johan Bodegård—exemplify how RWE can support product development and market access.

McKinsey & Company estimate that an average top-20 pharma company that adopted advanced RWE analytics across its whole value chain for in-market and pipeline products could unlock more than $300 million a year over the next three to five years.

The Path Forward: Strategies for Success

While these advancements present significant opportunities, they also require pharmaceutical companies to adopt comprehensive strategies to harness the full potential of RWE. Here are key dimensions that successful organisations are focusing on:

Strategic Alignment: Integrating RWE analytics into brand and R&D strategies ensures that teams collaboratively define goals and prioritise areas that can benefit most from advanced analytics.
Value Proposition: Demonstrating the tangible value of RWE through targeted use cases—often referred to as “lighthouse” projects—can galvanise organisational buy-in and foster broader implementation across functions.
Organisational Structure: Establishing a centralised global capability group for RWE oversight can enhance governance and facilitate collaboration across various departments, ensuring alignment in RWE strategy.
Building Capabilities: While hiring data scientists is essential, organisations must also focus on developing standardised data infrastructures and hiring specialists who can bridge the gap between analytical expertise and business acumen.
Cultural Transformation: Shifting the mindset around RWE is critical; organisations must view RWE as a fundamental aspect of evidence generation and strategic planning rather than a supplementary resource.
Partnership Development: Forming alliances with analytics firms, academic institutions, and tech companies can expedite the acquisition of innovative capabilities, fostering internal skill development.
Data Relationships: Establishing strong partnerships with data providers enables pharmaceutical companies to secure access to vital datasets and develop enriched insights that inform business strategies.
Robust Tools and Environments: Developing advanced platforms that facilitate automated evidence generation across multiple therapeutic areas will enable companies to leverage RWE for strategic decision-making and patient outcomes.

By adopting these strategies, pharmaceutical companies can transform RWE from a supplementary source of insights into a central component of their corporate strategy.

Companies that fail to recognise this shift may struggle to compete with those that can leverage rich, timely insights to inform their decisions.

Ultimately, the integration of real-world evidence and advanced analytics positions pharmaceutical companies to transition from product-centric to patient-centric organisations. With some industry leaders paving the way, it is imperative for others to adopt similar blueprints for success in the evolving landscape of evidence generation.

For further insights, you can refer to the original article published by McKinsey & Company here.