Capgemini Consulting and HealthPrize Report Reveals Key Revenue Loss Across 100 Therapeutic Areas Including Chronic Conditions such as – Diabetes, Hypertension and High Cholesterol – and Critical Conditions such as HIV, Cancer and Transplant
NORWALK, Conn., Nov. 27, 2012 /PRNewswire/ -- Capgemini Consulting, the global strategy and transformation consulting arm of the Capgemini Group, has announced the release of its study conducted with HealthPrize Technologies, "Estimated Annual Pharmaceutical Revenue Loss Due to Medication Non-Adherence."The report provides key insights and analysis on the significant revenue loss to global pharmaceutical companies as a result of medication non-adherence.
Based on detailed review and analysis of modern claims-based adherence literature and data, the estimate of revenue lost by the U.S. pharmaceutical industry each year due to non-adherence to medications for chronic disease is $188 billion. Extrapolated to the global pharmaceutical industry, revenue losses are estimated to be $564 billion. This number is significantly higher than the $30 billion global revenue loss often quoted to date from a 2004 study1, and higher than many pharmaceutical executive estimates.
This revenue loss represents 59% of all pharmaceutical revenues, which were $320 billion in the U.S. and $956 billion globally in 2011 according to IMS, and 37% of potential total annual revenues, which would be $508 billion in the U.S. and $1,520 billion globally. While achieving 100% medication adherence is likely not possible, even a modest 10 percentage point increase in adherence could lead to a significant rise in pharmaceutical revenues, accompanied by improved health outcomes and decreased healthcare spending.
"The revenue that pharma leaves on the table due to lack of adherence to prescription medications is much higher than usually thought," explained Thomas Forissier, Principal at Capgemini Consulting. "In addition, many people don't realize that a 10% boost in adherence could increase revenue by much more than 10%. That 10% loss is based on the higher revenue amount that could have materialized, not on actual revenue earned."
"Medication non-adherence is one of the most serious problems in healthcare, posing a heavy financial impact on all constituencies," commented Katrina Firlik, MD, co-founder and chief medical officer of HealthPrize. "For insurers, employers, and patients, non-adherence significantly increases healthcare costs as a result of disease-related complications. For pharmaceutical companies, pharmacies, and pharmacy benefits managers, non-adherence significantly erodes profit due to prescriptions never filled and medications not taken often enough. Given the significant potential to enhance revenue and lower cost to the overall healthcare system, programs to address medication adherence should be a top priority to the pharmaceutical industry."
Report Highlights:
Report Access:
To download a full copy of "Annual Pharmaceutical Revenue Loss Due to Medication Non-Adherence," please go to http://www.capgemini-consulting.com/think/publication_detail/?id=CA4F0A5C-FC61-D872-3853-C4C97324D41E&type=document. The report is also available on http://www.adherence564.com/ with key study findings and a central forum for discussion.
About Capgemini Consulting:
Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change.
Find out more at: http://www.capgemini-consulting.com/
About Capgemini:
With more than 120,000 people in 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore ®, its worldwide delivery model.
Learn more about us at http://www.capgemini.com/
Rightshore(R) is a trademark belonging to Capgemini.
About HealthPrize Technologies:
HealthPrize Technologies provides an innovative approach to addressing the problem of medication non-adherence with an online and mobile-based program that is fun, educational and rewarding. Patients are engaged and motivated by the HealthPrize system which utilizes gaming dynamics, behavioral economics and proven concepts from consumer marketing to engage and educate patients so they start and stay on prescribed medications.
For more information, please visit http://www.healthprize.com/
Sources:
1Datamonitor, Addressing Patient Compliance: Targeted Marketing Driving a Shift in Focus From Acquisition to Retention. August, 2004.
Media Contact:
Andrea Orzehoski
Chandler Chicco Companies
212-462-8706
aorzehoski@chandlerchiccocompanies.com