Multi-indication pricing case study

A pharma company had an add-on biologic to treat COPD, asthma and a number of further indications. The requirement was to analyze the product’s pricing potential.

The product had already launched as an add-on for asthma. A recommended optimal pricing strategy was needed for both COPD and further indications. The customer wanted to see whether the prices in COPD and further indications would be similar.

Considering the features of the additional indications, and the incremental clinical benefit demonstrated by the molecule in each, Inpharmation calculated the likely reimbursed price level.


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Objective 1: Find the optimal price for COPD and further indications

Key customer insight required

Pricing potential in 2 additional indications.

Challenges

Initial primary value pricing research by the customer gave a price range that varied by a factor of 10. Inpharmation’s research aim was to:

1.Recommend a single price for a specific target product profile.

2.Highlight drivers which, if uncertain, could lead to variance in the price recommendation.

Objective 2: Finding the different indication prices per EU5 country

Key customer insights required

A single price recommendation per country.

Challenges

There were 2 challenges:

1.Research the options available to achieve indication-specific prices in each country.

2.Model how the indication-specific prices interact in each country.

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