EnvoyHealth Competitive Landscape Analysis

Lauren OLeary, Marketing Intern

BACKGROUND

RESULTS

EnvoyHealth, originally launched in 2010 and rebranded in 2014, is a whollyowned subsidiary of Diplomat Pharmacy, Inc. that provides a full suite of
patient access solutions and support services for pharmaceutical partners
As a hub services company, it acts a single point of contact that streamlines
patient and provider access to specialty drugs and delivers comprehensive
healthcare management services to ensure continued adherence to therapies
EnvoyHealths model combines six tiers of services to support patients,
physicians and pharmaceutical manufacturers:
Customer Relationship
Management

Reimbursement
Management

Financial Solutions

Porters Five Forces Summary

Threat of New Entry

Information Technology

Non-Commercial Pharmacy

OBJECTIVES
Provide the EnvoyHealth team with a comprehensive competitive analysis for a
foundational awareness of the business
Identify the competitive landscape, market opportunity and potential challenges
Create a strategic action plan that can be implemented in the future

METHODS
Porters Five Forces model was used to analyze the competitive landscape
and gain insight into potential opportunities and challenges within the industry
Used to help identify ways to generate competitive advantage and profitability

Porters Five Forces Model

Threat of New
Entry

Industry growth is attracting new entrants as manufacturers are increasing the demand for
hub service companies that allow them to more intimately connect with patients
Expertise in the space is the most common and difficult barrier to overcome
The most challenging task companies have struggled with is the ability to create a strong
base infrastructure and IT system capable of supporting the projected service model

There is a fairly small, concentrated pool of limited distribution drug manufacturers that
EnvoyHealth will be targeting, especially focusing on the orphan and ultra-orphan markets
Having a small client pool means that a single manufacturer has the potential to greatly
impact the companys margins if it decides to switch to a competitor
Since EnvoyHealth acts as an agent of the manufacturer, the organization has very high
visibility and heavy control over the hub itself

Threat of Substitution
Companies new to the space will need to show compelling product/service differentiation in
order to compete with already established companies who can boast expertise
Although there is a likely cost and fear of disruption, manufacturers will still be inclined to
switch to a different hub provider if they are not satisfied with their current services
EnvoyHealth must be versatile enough to meet each clients specific needs

Supplier Power
Potential technology suppliers and partners must demonstrate high levels of customization
and robustness crucial to maintaining the flexibility of EnvoyHealths platform
Diplomat Pharmacy, Inc. is a significant provider of support for EnvoyHealth through its
market experience, leadership, training programs and potential employees
EnvoyHealths team is currently in discussion about using MedHOK as a Phase 2 platform

Competitive Rivalry
Supplier Power

Competitive Rivalry

Buyer Power

Threat of Substitution

Market research was also leveraged in the form of company websites, print
materials from conferences, white papers, press releases, social media, trade
journals and magazines, business owner interviews and annual reports

Market trends have resulted in the hub services industry growing in profitability
and size, with more competitors entering the space each year
Although there is a small group of large companies who currently dominate the
market space, manufacturers are starting to look for more flexible companies
who are able to customize their services to address specific client needs
Increase in demand for full hub service companies

Buyer Power
Clinical Care Management

DISCUSSION

Competitors in the field include pharmacy benefit managers, dedicated hub providers,
broad healthcare service companies, contract research organizations and specialty
pharmacies
There are approximately five large hub service providers that currently hold a significant
portion of the market share: Lash Group, UBC, Rx Crossroads, Covance and McKesson
The largest and most dominant provider is Lash Group, a subsidiary of AmerisourceBergen
Hub service providers compete on factors such as speed to fill, duration of therapy,
prescription triage, patient average co-pay, prescription abandonment and data processing

Opportunities

Leveraging experience, expertise from Diplomat

Unique market position: independent, nimble
Strategizing market position for maximum appeal

Challenges

Developing a flexible and sustainable IT platform

Establishing strong identity, confidence in brand

CONCLUSION
Develop
Collateral
Competitive
Landscape
Review
Competitive
Landscape

Market
Opportunity
Analysis

Strategic
Action
Plan

Must have clear awareness of what makes company superior

to competitors, as well as the service model to support
Must look to establish itself as a reputable company in the
field that potential clients can trust to deliver results
Strongest advantage is support and guidance from Diplomat
Needs to capitalize on its flexibility offering and ability to
deliver actionable analytics to manufacturers through its
platform, which is the current miss in the field
Develop collateral materials, website to support brand identity
Strive to make EnvoyHealth executives key opinion leaders in
the field by attending valuable conferences and becoming
active contributors to hub publications and discussions

REFERENCES
Basta N. Finding the HUB in Specialty Pharma Services [Internet]. Norwalk (CT): Pharmaceutical
Commerce; 2013 Sept 18. Available from: http://www.pharmaceuticalcommerce.com/special_report?articlei
d=26972&keyword=HUB%20Services-specialty%20pharma
Basta N. (2014, Feb. 25). 2014 HUB Services Report [Internet]. Norwalk (CT): Pharmaceutical Commerce;
2014 Feb 25. Available from: http://pharmaceuticalcommerce.com/index.php?pg=special_report&articleid
=27128&keyword=HUB%20Services%20Report-manufacturers-channel%20partners
Hileman D. Hub Programs Continue to Add Value as They Evolve [Internet]. Plainsboro (NJ): Specialty
Pharmacy Times; 2013 Feb 15. Available from: http://www.specialtypharmacytimes.com/publications/
specialty-pharmacy-times/January_February-2013/Hub-Programs-Continue-to-Add-Value-as-They-Evolve
The Hub Model: A Centralized and Comprehensive Approach to Maximize Patient Access [Internet]. Charlotte
(NC): Lash Group; 2011. Available from: http://www.lashgroup.com/resource_center/white_papers