Value creation in market shaping: Learnings from the GHMS 2024 conference

I recently attended the first Global Health Market Shaping 2024 conference managed by Linksbridge and funded by BMGF where I hosted a plenary session around the topic 'Ensuring?Mutual and Sustainable Value creation', one of the key foundations for good market shaping. In this note, I want to amplify the key insights that emerged during the rich conversation with seasoned market shaping experts who came from the world of devices, diagnostics, drugs, and vaccines.

1. Firstly, market shaping can have unintended consequences and needs to adopt a long term view. Value creation in the short term by way of reduced prices may lead to reduced market competition and choices in the future. Similarly, benefits for regional manufacturing may or may not outweigh the cost of reduced global market competition. In thinking of value creation, market shapers need to assess if short-term benefits align with long-term goals and anticipate potential downstream effects on market dynamics.
2. Relatedly, before we begin a market shaping exercise it is important to ask the question from whose lens is/should value creation be evaluated. Should value maximization be carried out for buyers (government/private entities), sellers or end-users of the health commodities or services ? Should it be evaluated from the point of view of regional/local markets or the global market?
3. In answering the question above, it is important to consider those stakeholders not on the table, such as end-clients and the broader supplier community. For example, would end-users value reduced prices for a health product class X today but fewer choices in the future? Do they actually value reduced prices or better quality of the product or something else? Therefore, country-led market shaping with representation from civil society and stakeholders is a best practice. This ensures that interventions are responsive to local needs and priorities and promote inclusivity and equity in decision-making processes.
4. Information asymmetry inhibits value creation. Establishing a data-sharing consortium within the market shaping community can address this issue by facilitating the exchange of data analytics, models, and market intelligence. By pooling resources and expertise, stakeholders can overcome barriers to information access and leverage collective insights to inform decision-making and drive innovation.
5. Lastly, sustainable value creation necessitates that suppliers or private entities bear some risk. De-risking practices should not compromise sustainable value creation. Instead, market shaping interventions should incentivize private sector engagement and promote accountability and transparency to foster a culture of shared responsibility for achieving positive health outcomes.

?