Global pricing models

data

Objective

Pharmaceutical pricing is extremely complex, given the varying regulatory and competitive environments found across the globe. In particular, reference pricing schemes in Europe (and increasingly elsewhere) mean that price-setting cannot be contained nationally, but must be managed "top down". This is particularly important during launches.

2

Developed tool

Our consultants have on several occasions developed global pricing simulation and forecasting models incorporating:

  • Detailed reference pricing rules
  • Dynamic parallel trading assumptions
  • Launch sequence optimizers

The tools are typically built in Excel, adding an intuitive user interface layer (graphical output and custom menus) on top of the well-known spreadsheet functionality. When applicable, the tool is built with an interface to existing IT (e.g. proprietary pricing databases).

impact

Result

Clients are able to:

  • Produce and manage consistent price forecasts for all markets
  • Assess the global impact of local price changes
  • Explore pricing scenarios
  • Optimize product launches

It is not uncommon in these kinds of analyses to find that two seemingly similar options differ by tens of millions of euros in NPV.

Industry
Healthcare & Pharma
Tool type
Pricing support
Project duration
4-12 weeks
d2i effort
10-100 man days, depending on scope and complexity
Data volume
100K-1M data points