Three easy steps to drive your pharmaceutical pricing strategy | GfK

Pricing for pharmaceuticals continues to grow in complexity for the industry due to a variety of factors.  A few of the prominent challenges our clients face include:

  • Just one chance to get it right. Once a price strategy is in place, course corrections are difficult and sometimes even impossible; for example, price increases in ex-US markets. Not just leaving money on the table is a concern.  Also when exceeding a price threshold, a change in price strategy might not even correct payer and prescriber perception and change behavior to the expected extent.
  • More competitive markets. Many indications, even in oncology and specialty care, have become crowded market spaces between brand, generic and biosimilar players these days. Standing out in the crowd from a value perspective can be challenging; thus pricing becomes even more important.
  • Continuously growing price pressure. Healthcare budgets keep expanding and payers look for savings potential, in particular with drugs. A popular concept is shifting budgetary risk to manufacturers, either based on spend or measured by outcomes. In the US, also patient exposure to cost is a growing market access hurdle.
  • Prescriber price sensitivity. Beyond payer influences on utilization, prescribers are more aware than ever of drug prices and more likely to chime in for the discussion in the media. In the US, value frameworks have become an instrument to convey different perspectives of measuring value which payers start to look at when making drug coverage decisions.

Read complete article here:

Three easy steps to drive your pharmaceutical pricing strategy.