Pricing & Reimbursement Analysis
Prices Communicate Value
Drug development is ultimately a process of value creation. Your company is enabling patients to live longer or better, allowing better disease diagnosis, or even saving money for the healthcare system. Yet your company does not recapture any of that value until you bring your product to market and place a price on it. Your price speaks volumes to customers, competitors, and investors about how your company views your product and where it fits in the market.
Avoiding Common Pricing Mistakes
Pricing should be approached as an important business decision consistent with the overall product strategy of supporting your corporate objectives. Too often, though, companies don’t devote enough resources to the pricing decision, don’t properly account for the importance of different customer groups with regard to price, or fall into a number of pricing traps, including:
• Automatically pricing equal to the competition
• Ignoring or focusing only on manufacturing costs
• Failing to talk to all important customer groups while accounting for their biases
• Waiting until late in clinical development to evaluate pricing and reimbursement issues
Objective Insights–Maximizing Your Profits
Objective Insights brings clarity to your company’s pricing decision. We help you focus on what the right price should be with our in-depth pricing research and innovative modeling methods.
Objective Insights approaches pricing research with the goal of disguising the true purpose from respondents while ensuring that the research provides the answers needed to determine the best price. We apply well-known and accepted research designs, such as monadic block and discrete choice, to avoid the problem of respondents “gaming” the system once they realize the intent of the research is pricing.
We also seek to incorporate the influence of price on the behavior of customer groups other than physicians, such as patients and payers. Failing to account for such influences as patients increasingly turn to high-deductible insurance plans and payers increase co-insurance and co-payments can be a fatal flaw in research design.
Objective Insights employs an innovative modeling approach to integrating pricing research results from many customer groups to determine an overall profit-maximizing price. This simplifies the pricing decision by combining disparate and sometimes conflicting research under one roof and resolving the interplay between market forces.
Know Your Payers
Proper pricing permits your company to capture some of the value it has created, yet it is reimbursement that subsequently allows you to receive payment for your product.
Objective Insights helps you to determine the importance of different payer segments to your product’s success, as well as identify payer policies that apply to your product. Evaluating and monitoring reimbursement policies early in product development can help you avoid making development decisions now that result in adverse reimbursement later.
Objective Insights is dedicated to helping our clients formulate pricing and reimbursement strategies that maximize their profits while balancing concerns such as patient access and payer restrictions.
Price Change Advisor™
Shows the overall corporate effect of price change amounts and timing by product, for an entire portfolio of products