Commercial analytics : Pricing analytics

Identify the right-fit pricing strategy

Price determines a product’s commercial success. Pricing decisions span the entire product lifecycle and not just the launch stage. Changing market environments demand more sophisticated pricing approaches, involving multiple factors that impact both the market and key stakeholders.The implementation of phamax pricing analytics solutions helps our clients to determine the optimal price range for products and anticipate the impact of a price fluctuation.
phamax supports pharmaceutical companies in effective pricing decisions using analytical modelling to decrypt the real-world complexities. 

phamax pricing experts identify multiple parameters impacting the pricing dynamics and evaluate the impact of these parameters individually and in relation to each other. The various analyses involved in developing a pricing strategy are:

  • Price mapping

  • Price setting

  • Price optimization

Price Mapping 

  • Validate a product’s price based on its clinical profile, PLC stage, competitive landscape and performance
  • Identify a product’s optimal price range by benchmarking against suitable historical analogs
  • Develop a market reference map based on the processes and regulations impacting the pricing decisions
  • Build a referencing model to quantify the impact of price changes elsewhere and adapt accordingly

Price Setting 

  • Establish a price corridor based on the price sensitivity of key stakeholders in the target markets (physicians, payers, pharmacies, patients)
  • Benchmark against the competition based on a product’s value proposition and market relevance
  • Develop price–volume relationships with statistical modelling and analogue analysis
  • Develop flexible models to set a product’s price based on changing clinical profiles and competitive landscapes

Price Optimization 

  • Assess the relationship between product price and sales
  • Use regression modelling to identify the key competitors and their impact on product sales
  • Determine a product’s ‘right price’ through simulations at various price points
  • Identify the ideal product price in the market
  • Unambiguous pricing decisions by assessing external events
  • Maximized commercial success by optimizing a product’s geographic launch sequence

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