The Best Price for the Most Revenue - Pharmaceutical Executive


The Best Price for the Most Revenue

Pharmaceutical Executive

Solution: Pricing Intelligence Center

Creating a centralized yet cross-organizational intelligence pricing center will provide:

A platform for data repository and integration

Fact-based decision making that is repeatable and standardized to enable options comparisons

Advanced analytics such as optimization, simulation, "what-if" analysis, and forecasting

Central enterprise communications vehicle to deliver clear corporate strategies and guidelines, to enable market intelligence reporting, and to capture best practices

Without a single integrated version of the truth, many hours are spent unproductively explaining and adjusting data and analysis. This is time better spent elsewhere.

Best-in-class operating agreements

We concluded from our conversations that to achieve optimal revenue for a brand demands best in class capabilities:

Corporate objectives will drive the optimized launch price and sequence to obtain access to the largest number of eligible patients, at the greatest reimbursable price

Country goals will be in concert with corporate objectives

Country launch date and price corridoors will be analytically rigorous using market analytics and emperical data points

Price events will be simulated to assess and minimize negative global revenue impacts

Global Pricing or Market Access Teams will be the hub for communicating launch and in-market pricing decisions, evaluating and adjusting for exchange rates and historical prices

Affiliates will be responsible for populating the central repository with sales volume forecasts and country reference price rules

Today's pricing and market access teams deliver corporate pricing analysis to the organization both at the corporate and affiliate levels. Fortunately these are seasoned teams that understand the market nuances and the products. Yet with so many senior executives questioning the strategies and the supporting analytics for these critical pricing decisions, it's important to critically evaluate the methodologies, use the benchmarking studies and question standard hypotheses. Without doing so there's no way to answer that fundamental question—"How do you know you got the best price?"

Alice Swearingen is Principal Industry Consultant, Life Sciences, for SAS. She can be reached at
. Patrick Homer is Principal Industry Consultant, Global Practice, Health and Life Sciences, for SAS. He can be reached at


blog comments powered by Disqus

Source: Pharmaceutical Executive,
Click here