Pricing and revenue optimization analysis
Objectives: To identify the profit-maximizing price through different price finding methodologies based on price response and profit functions
Research
- Conducted a market assessment and pricing/market access strategy for a new insulin agent
- Provided recommendations on target prices for France, Germany, and the UK while considering launch sequencing and parallel trade issues
Analyze
- Performed thorough secondary research on the market, pricing and reimbursement environment, payer thinking and past behavior
- Conducted primary research with key opinion leaders, endocrinologists, diabetes nurse educators, and reimbursement decision makers including a Van Westendorp methodology
- Applied the Triangulation Methodology, bringing together price reference, budget/health economic issues and compassionate value/health outcomes claims for specific patient types and treatment settings
- Created a revenue impact analysis to translate price-prescribing relationships into estimates of price volume relationship, sales forecast and profit optimization
Communicate
- Analytica explored and defined competitive pricing and positioning options: parity pricing with comparator vs. price-premium vs. discounting strategies (to all or selected customers)
- A custom internal forecasting tool was built: patient-based model, price assumptions, market share modeling
(based on research)
- A pricing/revenue optimization analysis was conducted to determine the optimal price for France, Germany, and the UK, as well as implications for other countries
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