MSD - Digital Health Partnerships in Europe & Globally

Pharma companies are actively seeking health tech partnerships to bridge care gaps and enhance patient pathways, but navigating these collaborations requires strategic insight. This post breaks down the essential steps discussed during the virtual round table with Jutta Klauer, Strategic Digital Partnerships Director @ MSD Idea Studio Europe—from understanding pharma’s structure to crafting a compelling value proposition—that can help health tech firms secure impactful partnerships and scale their solutions globally.

1. Understand Pharma Company Structure: Pharma companies are divided into several areas: drug discovery, clinical trials, commercialization, manufacturing, business development, and back-office functions like IT, HR, and finance. They have a global structure for overarching strategy, but commercialization happens in individual markets, which are divided into regions.

2. Know Why Pharma Wants Partnerships: Pharma companies partner with health tech startups because they cannot develop all necessary technologies in-house due to regulatory constraints and lack of expertise in areas like software development and direct patient engagement. Partnerships help pharma companies address care gaps and pain points in patient pathways and healthcare systems.

3. Focus Areas for Digital Health Solutions: Health tech companies should focus on areas such as early detection and diagnosis, awareness, education, and activation (e.g., screenings and vaccinations), therapy companions to support patients during treatment, and enhancing patient experiences in clinical trials.

4. Build Relationships and Engage: To engage effectively with pharma companies, health tech firms should focus on building strong relationships with key decision-makers. This can be achieved through networking events, industry forums, and direct outreach. Transparent communication, reliability, and demonstrating the value of their solutions are crucial for building trust.

5. Create a Compelling Value Proposition: Health tech companies should clearly articulate how their solutions can address the specific needs of pharma companies. This includes highlighting the unique benefits of their technology, such as cost savings, improved efficiency, enhanced data analytics, and better patient outcomes. Providing case studies, testimonials, and data to support these claims can strengthen the value proposition.

6. Navigate the Partnership Process: Engagement involves identifying the right contact person, understanding the business case, defining shared goals, and navigating legal, compliance, and regulatory requirements. Partnerships require a clear business case, mutual benefits, and a formal agreement outlining roles, responsibilities, and timelines.

7. Leverage Pharma's Network and Expertise: Pharma companies have extensive healthcare networks, expertise in market access, and potential investment from venture capital funds. Health tech companies can benefit from pharma's knowledge of healthcare systems, legal situations, and the ability to scale solutions across different markets.

8. Be Prepared for Challenges: Challenges include navigating complex organizational structures, regulatory compliance, and ensuring data security. Health tech companies should be prepared for a lengthy and complex partnership process but recognize the mutual benefits.