Chapter 5Around-the-Patient InnovatorsThis business model, still centered largely on producing drugs, also calls for developing ancillary services, algorithms, analytic capabilities, and more to create a new basis for product economics and to add value for customers.

Still product-centric at heart, the businesses embracing the “Around-the-Patient Innovator” model understand that developing and commercializing therapeutics is no longer enough to sustain them as innovators. They know that in order to make enough money to offset the risks of being an innovator, they need to pivot to a patient outcome–centric business model, which will not only enhance the value of the science but also equally satiate the needs of the emerging patient-consumer and the payer systems that are looking for value for their reimbursement dollars.

To do this, they are creating sets of services, algorithms, analytic capabilities, and more, and packaging them to create a unique benefit for clinicians, provider/national health systems, and patients. In other words, Around-the-Patient Innovators are making bold moves to broaden the definition of their product offering beyond the device, or the chemical or biological entity they produce. By adding digital and service dimensions to their offerings, they can provide a robust scope of value to customers—and create a new basis for their product economics.

Healthcare ...

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