Reference Pricing Modeling
Hitting the pricing sweet spot requires a detailed analysis of not only your competition, but also
emerging economic and consumer trends.
One of the greatest challenges for any manufacturer or retailer is setting prices. Impacted by economic
conditions, trends in label growth, and commodity cost fluctuations, pricing and sales strategies require in-depth and current knowledge of the market.
• How can we best define and articulate the value proposition for our product?
• How should I design our strategy for evidence development, gap filling and pre-market conditioning?
• How should we develop our global pricing strategy given local market dynamics and list-to-net factors?
• What are the key considerations for launch sequencing/parallel trade?
• What type of contracting approaches and rebate strategies will optimize our ROI?
• So what is the optimal price point for our products, and how will my customers respond to changes?
• How should we price a new product or a product re-launch?
• What’s the best way to promote my products during a price increase, and which promotions are the most effective?
• How does the changing payer environment affect drug pricing across the world?
• What will be the impact of a price reduction on our portfolio?
• What are the comparator prices for this business development opportunity?
MRA Group links international expertise in health economics and outcomes research and deep knowledge of pricing and market access at the global, regional and local level to help our clients achieve market access and demonstrate value.
MRA Group analyses focus on the economic impact of treatments, diseases, and conditions, including the direct costs of medical expenditures and indirect costs, such as those associated with work loss and disability.
MRA Group optimizes your pricing and promotional strategy to align with brand and profit goals for your entire product portfolio. We work with you to predict how various pricing and promotion scenarios will impact sales and profits as well as the shopper’s perception of your brand.
How We Help?
• Global pricing frameworks
• Launch pricing and positioning studies
• Trial/market simulation modeling
• Global cost-effectiveness models
• Patient Reported Outcome (PRO) studies, including Quality-of-Life and health utility studies
• Retrospective cost-effectiveness and resource utilization studies
• Global and country-specific value dossiers
• Pricing and market access research
• Generic Reference Pricing (GRP): In GRP, only generic substitutes are grouped into the same cluster as the original, off-patent drugs. Horizontally differentiated, but therapeutically equivalent drug versions are not included. Our pricing model incorporates the co-payments faced by consumers and helps our client to understand how pricing affects the consumer purchase behavior within a wide range of products/brand available.
• Therapeutic Reference Pricing (TRP): We provide detailed understanding of TRP with specific focus to a defined geography. If the costs of launching a new drug in a specific country are low, with a corresponding low risk of no market entry for new drugs, then TRP is clearly socially favorable. However, if this is not the case, then either NRP or GRP might be necessary to stimulate market entry. The choice between NRP and GRP implies a trade-off, since the former yields higher drug expenditures but lower health risks to patients.
• No Reference Pricing (NRP): In NRP, co-payments differ as compared to GRP, since the patients that are prescribed one of the original drugs are now also fully liable for the price difference with respect to reference price
• Price and promotion options, discerning optimal price to drive trial and repeat purchases, meeting volume and profit goals.
• New and re-launched product pricing strategies to generate trial and respond to competition.
• Retail and consumer research data to form a holistic picture of the market, and forecast future shifts.
• The impact on sales and profitability for manufacturers and retail partners, as well as price interactions between own portfolio.
• Pricing promotions, with clear recommendations for improvement and pack price optimization.
• Market continuously to best respond to fluctuations and commodity cost changes.