In a recent study, when evaluating a product’s optimal price, 84% of surveyed pharmaceutical companies focus on obtaining information about competitor companies and products.
The study, titled “Pharmaceutical Pricing Strategy: Developing Teams to Calculate and Communicate Product Value” and published by Cutting Edge Information, discovered that more than half of all surveyed companies also focus studies on US government payers, physicians and US private payers.
Surveyed Top 10 pharmaceutical companies most often consider US private payers and competitor companies/products (86% each) in pricing studies. Only two customer segments are targeted by less than half of the companies: EU private payers and pharmacists, at 43% and 29% respectively.
The large majority of Top 50 companies (83%) target US government payers. The next most common groups on which Top 50 companies focus pricing studies are physicians and competitor companies/products, each with 67%.
The study found that 92% of interviewed small drug manufacturers focus pricing studies on competitor companies and their products. Eighty-three percent of device companies, as with other company types, largely focus pricing studies on competitor companies/products.
“Knowing the prices, sales and market surroundings of a drug’s existing competitor products is invaluable for predicting the effects that various pricing options could have on a company’s own product,” said Jacob Presson, research analyst at Cutting Edge Information. “The other most common pricing study focus — US government payers, physicians and US private payers — are also appropriate targets from which to gain predictive information. The two payer groups are most affected by pricing and physicians may not prescribe a company’s product as often if it is not optimally priced.”
“Pharmaceutical Pricing Strategy: Developing Teams to Calculate and Communicate Product Value” ( http://www.cuttingedgeinfo.com/research/market-access/pricing-reimbursement/ ) features product pricing support data covering key stages of development, ranging from the pre-clinical stage through a product’s second year following launch.