Developing a successful yet sustainable and defensible international strategy for pricing for pharmaceuticals is becoming an increasingly more complex challenge worldwide. With many payers across the globe opting for a different approach to value measurement, it can be difficult to realize the best price to maximize revenue.
Price optimization of just 1% is the equivalent to a 10% increase in profit, yet most pharmaceutical companies only award themselves an average of just 56% for the effectiveness of their current pricing function. To develop a global pricing strategy, it’s important for companies to overhaul outdated models in favor of new ones which:
• Integrate health economics early
• Generate evidence to demonstrate value and optimize price
• Anticipate and manage the “price waterfall”
• Devise the optimal launch sequence
• Monitor and respond to price fluctuations post-launch