Ep. 258, Chapter 6: How Strategic Procurement Drives Biotech Success with Tom Wells

50:34 – End

Wells discusses the concept of "Payment Share" or "Bonus-Malice" in procurement, where suppliers' compensation is directly tied to outcomes, similar to value-based drug contracts. While acknowledging the strategy’s potential, he highlights the challenge in biotech due to numerous uncontrollable variables (e.g., competitor actions, supply chain issues, sales force performance) that can impact a drug's success beyond the supplier's direct influence. Wells states that advancements in data analysis will eventually make linking cause and effect more feasible. He concludes by emphasizing the critical role of procurement, advising biotech companies to engage procurement teams early, deeply, and strategically to drive lasting value and directly impact patient outcomes.