Andrew Parece, MBA

Andrew Parece is managing principal of Analysis Group (www.analysisgroup.com).

List pricing strategies that diverge from these approaches without "hitting the cliff".

Sometimes the loss of revenue from a branded drug can outweigh the royalty stream from an authorized generic.

Pricing has never been more of a key issue for the industry than it is right now. Yet, even with the increased importance of pricing strategies, a lack of focus on critical market factors leads many manufacturers to forego profits or increase their vulnerability to aggressive payers. Aligning pricing and contracting can achieve a sustainable competitive advantage-if product managers objectively assess a product's clinical benefits and address two key questions: