5 need-to-know facts from ISR's newest primary market research report on Health Economics and Outcomes Research. Analysts interviewed HEOR professionals at Top 50 pharmaceutical and biotech companies who shared their perspective on topics such as role of HEOR within their organizations, how their departments are structured, and key challenges faced by HEOR employees. ISR also collected insights on department size, outsourcing practices, and department funding.

1. need-to-know
facts from ISR’s

2. 1. Successful HEOR employees
have particular strengths.
Our respondents consider three attributes to be
the most important qualities for HEOR employees:
Communication/writing skills, Business sense, and
Analytical abilities.
Product/therapeutic area knowledge
Ability to work well with others
Analytical abilities
IMPORTANCE
Communication / Writing Skills
Business Sense
Project management
Most
Least
© Industry Standard Research

3. 2. HEOR functions don’t always
scale with company size.
Given the high degree of outsourcing that takes
place within the field of HEOR, this phenomenon is
not surprising as many companies only staff core
HEOR capacities in-house and outsource the rest.
Top 10 Pharma respondents
Top 25 Pharma respondents
Top 50 Pharma respondents
200
H
EO
R
Em
ployees
190
180
170
160
150
110
140
100
130
90
120
80
70
60
50
40
30
20
10
H
EO
R
Em
ployees
© Industry Standard Research
MOST DATA POINTS HAVE BEEN
REMOVED FOR PREVIEW PURPOSES.
FULL HEADCOUNT DATA AVAILABLE
IN FULL REPORT.

4. 3. HEOR budgets tend to be
higher in 2017.
Only a few respondents’ budgets remained the
same as last year’s budget, while one other’s
diminished due to shrinking sales and not
meeting goals.
budgets are variable year to year and could be as high as $100 million depending not only on c
size but also product line volume and the company’s product development cycle. For example
companies with imminent product launches have increased budgets this year—in one case, do
amount they had last year—to support activities, such as developing economic models, value d
etc. More often, budgets this year are higher than they were in 2016. Only a few respondents’
remained the same as last year’s budget, while one other’s diminished due to shrinking sales an
meeting goals.
Generally, HEOR activities support almost all of the commercial brands at one’s company, with
exception of a few products that receive little or no priority. Prioritized products for the most p
least one of the below characteristics:
HEOR Department's 2017 Budget (excluding salary/headcount)
(some respondents unable to provide an estimate)
Top 10Top 25Top 50
Top 10Top 25
Top 10
© Industry Standard Research

5. 4. 70-80% of HEOR studies are
planned ahead of time.
The HEOR planning process is highly strategic in
nature and typically takes place one year in advance
of the work being implemented—most often during
the months of May through September.
Approximate amount of HEOR
studies planned ahead of time
“As needed” ad-hoc studies
© Industry Standard Research

6. 5. HEOR employees prefer to be
aligned under Medical Affairs.
Many interviewees prefer their department be part
of the Medical Affairs organization to avoid the per-
ception of bias in their work, however the structure
of HEOR departments are frequently changing.
Head of HEOR
Head of Medical
Affairs
© Industry Standard Research

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the industry’s HEOR
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