KEY TAKEAWAY: At $12.50 per patient a day, Entresto carries a substantially higher price tag than the older drugs, which cost less than a dollar a dose. However, Novartis is deploying digital tools to prove to insurers that their drug has better outcomes which, in turn, leads to lower long-term health care costs.
Novartis is deploying add-on services intended to further improve outcomes for patients on Entresto. It could involve providing a device that allowed doctors to monitor patients remotely so they could pick up on early signs of deterioration.
Novartis is also returning to the digital health industry to find ways of rationalizing the cost of its newly approved medication. The company is specifically evaluating remote patient monitoring services and solutions, including Internet-connected scales that could detect concerning changes in daily fluid balances. By rolling out a platform that supplements its medication, Novartis hopes to improve outcomes and drive down healthcare services utilization within the heart failure patient population.
In addition, Novartis is discussing flexible pricing models for Entresto with insurers. These would involve the insurer getting a partial refund if the drug didn’t produce the promised outcomes and the company getting a bonus payment for exceeding expectations. A partial refund?
Is this the right approach? It may not be but the experience and learnings from this integration is going to give Novartis a leg up on competitors who are still stuck in DTC marketing 2.0. This is a great example of going beyond the pill to help patients.