Pricing Strategy Assessment for Product Launch

A Case Study

Client/Scope

  • A small/mid-sized pharmaceutical company developing a new product in a specialty therapeutic area
  • Scope – US (Qual: 25 pharmacy directors covering 209M lives, 25 Physicians; Quant 150 Physicians); EU5 (Qual: 10 payers)

Project Objectives

  • Conduct a Pricing Strategy Assessment to develop launch list and net pricing approaches in six countries and a roadmap taking into account key elements of pharmaceutical pricing
  • Test TPP/multiple price points with various stakeholders to define value, positioning, clinical and economic benefits necessary to optimize PRMA in multiple countries

Project Description

Multi-step project with primary and secondary research • Synthesized results from data analysis into a model calculating various grosstonet scenarios for each price point  • Developed a final pricing strategy recommendation and roadmap

  • Performed a market landscape analysis to understand the competitive and reimbursement landscape for a specialty disease
  • Evaluated PRMA approaches for multiple additional analogue products to determine positive and negative lessons for novel agent strategies in each country
  • Gauged payer and physician perceptions of value, reaction to the list and price, value-based/innovative contracting approaches and expected levels of coverage and utilization management
  • Assessed treatment landscape for the disease—examined physician perceptions toward the target product and competitors, and assessed patient copay/out-of-pocket sensitivity on prescribing
  • Developed an Excel-based triangulation model including payer coverage, patients prescribed, patient fills to estimate volume and price trade-offs for the product
  • Recommended final list and net price and roadmap for product in each of the six countries

Project Outcome

  • Pricing strategy was implemented, launch PRMA goals were met and revenue goals were exceeded

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