The Aspects of Pharmaceutical Pricing
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Beschrijving
The business model of the pharmaceutical industry with a third party and often public payer has always puzzled people. The patients who benefit from treatment with a medicine pay part or even nothing of the cost. Physicians who drive volume by prescribing drugs might have an interest in cost if their drug budget is controlled or prescribing habits are monitored. Or they are indifferent to price and let therapeutic value dominate their decisions. The public or private payer has to operate within restricted budgets and hence tries to control spending by cost containment regulations.
Within this constrained environment pricing is more important than ever. Too high a price may block market acces…
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The business model of the pharmaceutical industry with a third
party and often public payer has always puzzled people. The
patients who benefit from treatment with a medicine pay part or
even nothing of the cost. Physicians who drive volume by
prescribing drugs might have an interest in cost if their drug
budget is controlled or prescribing habits are monitored. Or they
are indifferent to price and let therapeutic value dominate their
decisions. The public or private payer has to operate within
restricted budgets and hence tries to control spending by cost
containment regulations.
Within this constrained environment pricing is more important than
ever. Too high a price may block market access, too low a price
will leave money on the table. As successful products sell billions
of dollars globally, even a small deviation of the optimum price
will have a big impact on business.
Moreover, pricing does not stop at launch. Multi-country
interactions, new indications, new formulations, new competitors,
mandatory price decreases, more efficient procurement practices,
and finally loss of exclusivity complicate life cycle price
management.
This interactive training will touch upon all aspects of
pharmaceutical pricing. How are prices derived? What is a fair
price? How can one defend list price against decisions of
authorities, aggressive procurement techniques and competitive
price moves? How should one react when a non-differentiated
competitor tries to steal share by lowering price?
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