Is the price, right?

Pricing new medicines is a critical and time-consuming process. It stands as one of the most important decisions a company makes. Drug prices face constant scrutiny and criticism from various stakeholders along the value chain, including the media and politicians. The complexity of the US healthcare system, with its multiple stakeholders and diverse financial incentives, adds further layers of challenge. Achieving the right price demands thoughtful considerations and a strategic approach. Despite this, many companies struggle to navigate this process effectively.

Several key factors contribute to the mistakes many companies make when pricing new medicines:

Absence of a common set of organizational pricing principles
Inconsistent framework/methodology for pricing decisions
Deciding a price without knowledge of the final label
Failure to consider the perspective of all stakeholders’ who influence adoption
Over indexing on physician/provider input
Not understanding how out-of-pocket costs impact patient access and affordability
Not accounting for competitive responses to your price
Ignoring the impact of mandatory and discretionary discounts on net price
Not considering for future indications with different price points based on their unique value propositions
Not anticipating how “real-world” dosing, adherence and compliance will impact utilization and price
Failure to effectively and confidently communicate your price and value proposition

To overcome these challenges, it is essential to adopt a structured and comprehensive pricing framework. A3Access has a proven track record in pricing medicines effectively. If your organization is seeking guidance in navigating the complexities of pricing new medicines, we are here to help. Let’s work together to secure a pricing strategy that instills confidence and drives commercial success.