Second indication, a second chance?

Analogue-based pricing had previously failed our client. They now had just eight weeks to make a launch or no-launch decision for a second indication. An evidence-based approach was needed to prevent repeating past mistakes.

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Our client had an opportunity to learn from past mistakes

The story starts in the early days of AMNOG (the new German pricing system)a…

Poor pricing approaches had led our client, a growing top-50 pharma company, to grossly overestimate the price potential of their novel therapy. At launch it failed to meet even one third of the company’s predicted revenues.

When the time came to price a second indication, our client was eager to avoid past mistakes. An evidence-based approach was required.

Analogue pricing had failed them before…

The poor pricing decision, for the first indication, was the result of using a seemingly obvious analogue. While observing product similarities, our client had failed to see the differences between their asset and the analogue. Later research revealed that the asset’s price potential was actually less than half of the analogue’s price.

…and they were now facing an even greater challenge 

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