RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--When structuring pricing teams, a large number of surveyed pharmaceutical companies are creating dedicated pricing teams to handle all related functions, found a new Cutting Edge Information report.
The study, “Pharmaceutical Pricing Strategy: Developing Teams to Calculate and Communicate Product Value,” shows that the trend is not yet accepted by the majority of surveyed companies; 44% have dedicated teams. However, the advantages of a centralized group are clear to interviewed managers and directors. One Top 10 pricing manager says that his organization’s centralized pricing team allows it to get involved in products early in their lifecycle and continuously assess its value proposition.
One of the biggest advantages of a centralized pricing group is that it allows integration with other marketing and market access functions that play a vital role in the pricing success. Working closely with health economics is commonly noted benefit. Another interviewed executive in the study appreciated how dedicated pricing teams allow for constant contact with other market access groups — including managed markets teams. While these groups may not be constantly involved in the pricing process, they are still key players in the overall pricing structure.
“Close integration and constant communication are two significant benefits of a dedicated group,” said Jacob Presson, research analyst at Cutting Edge Information and the study’s lead author. “However, for some companies there are advantages to keeping groups decentralized. One pharmaceutical company manager explained the benefits of an ad hoc approach to pricing. The inherent flexibility of ad hoc groups allows the company to consider several different types of pricing approaches for each product.”
“Pharmaceutical Pricing Strategy: Developing Teams to Calculate and Communicate Product Value” (http://www.cuttingedgeinfo.com/research/market-access/pricing-reimbursement/) features product pricing support data covering key stages of development, ranging from pre-clinical through a product’s second year following launch.
Use this report to:
- Provide the right information — from pricing studies and outcomes research — to payers and stakeholders.
- Assess pricing team priorities, as well as health economics and comparative effectiveness research’s involvement in pricing decisions.
- Mitigate challenges including reference pricing, healthcare reforms, austerity measures and government cost cuts.
For more information about pharmaceutical pricing strategy, contact Cassie Demeter at 919-403-6583.