Pharmaceutical Pricing Strategy:
Realize 3-6% Margin Improvement with Pricing
Grow ROI & Market Share with Pricing Strategy
At Pricing Solutions, we believe that setting and managing prices is an ongoing process that your business should continually re-evaluate and improve.
In the pharmaceutical sector, that means building pricing strategy around a solid understanding of the complete decision-making process, which typically includes the roles of clinicians, payers, KOLs, and patients.
Overall, we look at product value, competition, payer strategies and willingness-to-pay.
Our clients achieve a typical payback of 10:1 on their research investment by leveraging pricing during various points in a product’s development cycle, including: during or after Phase III, in preparation for launch pricing; in Phase I – II trial, when determining whether to continue development; during sale/purchase of a molecule pre-launch; when faced with specific product challenges.
Speak to Our Pharmaceutical Experts Today
Approach to Pricing Research & Analytics in Pharmaceuticals
Value-based Pricing
• Identifying key value drivers
• Assessing the value of the product against key value drivers
• Assessing the comparative value vs. competitor products
Pricing, Reimbursement & Market Access
• Establishing possible product evaluation processes
• Identifying key decision stakeholders
• Establishing an optimal strategy to gain market access across markets
Proudly Working with Pharmaceutical Leaders
“Pricing Solutions helped us develop a launch pricing strategy for our new pharmaceutical product that was extremely successful. We would highly recommend them.” CMO, Pharmaceuticals
Astellas
Baxter
Bayer
CSTy
Becton Dickinson
Eisai
Eli Lilly
GSK
Hospira
Lundbeck
Novartis
Nycomed
Janssen
Pfizer
Roche
Sanofi-Aventis
Takeda
Wyeth
Success Story: Pharmaceutical Case Study
The Problem
- The client was one of the world’s top 20 largest pharmaceutical companies
- Had developed a new drug that was the first indicated treatment for a rare condition
- Internally, didn’t have a formal new product pricing process in place
- Needed a pricing strategy that set fair prices and encouraged medical professionals to prescribe the medication
The Solution
Pricing Solutions conducted full 360˚ launch price evaluation for the major orphan product:
- Information Gathering Interviews
- Purpose: to understand the importance of clinical and commercial factors in the payers’ decision-making process.
- In-depth interviews with senior managers from Sales, Marketing, and Commercial teams.
- Interviews with key payer groups from commercial Medicare and Medicaid plans.
- Qualitative Research Study
- Testing different price points and price structures to establish key psychological thresholds with specialists.
- Final Recommendations
- Combining existing wisdom of the client’s project team with senior stakeholders and Pricing Solutions data analysis to develop strategic options.
- Pricing Solutions presented various strategic pricing options in terms of revenue, risk, volume, company reputation and logistics impact so the most comprehensive go-to-market strategy could be employed.
The Result
- Pricing Solutions prioritized 6 recommendations to implement during the launch.
- Identified the optimal launch price to capture the $500 Million of estimated peak sales.
What’s the Pricing Solutions Difference?
Pricing Solutions has in-depth knowledge of healthcare launch pricing in major global markets. Our experience across 700+ pricing research and modeling projects instills client confidence in our recommendations. We leverage our full healthcare expertise and model of Pricing Research through
the 5 Critical Stages of the Product Lifecycle, to deliver solutions for both established and
alternative business models.
Contact Us for a Pricing Consultation
Pricing Solutions is one of the worlds’ leading pricing consultancy firms. We are dedicated to helping clients tackle their specific pricing challenges and dramatially grow profitability. Our consultants have extensive experience in B2B and B2C markets within a wide range of industries.
For more information about our services or to get in touch with one of our consultants directly please contact our global headquarters.