Recent Engagement 2:
Business Challenge
In preparation for the launch of a new biologic therapy for a debilitating disease, a large pharmaceutical manufacturer needed to identify an optimum price point that was both profitable and, at the same time, would not attract onerous managed care access restrictions. Any new product launch faces pricing issues, but when dealing with a high-cost biologic, the issues become extremely complicated. Managed care is faced with the complex and difficult task of determining which restrictions will be enacted to control access to a treatment - while ensuring that patients that will benefit from the new therapy can get it.
Methodology
Strategyx developed a detailed product presentation that was reviewed with select managed care decision makers and physician specialists. Managed care decision makers reviewed the product profile and numerous possible prices for the new treatment in order to define the complex relationship between the cost of therapies and the restrictions that would be imposed on a new entrant. Physicians reviewed a set of realistic restriction scenarios, based on the managed care research, to define the relationship between restrictions applied by managed care and the physician’s willingness to prescribe.
Results
A comprehensive picture of the pricing/restriction relationship was delineated. The client used this understanding to establish a launch price that resulted in an optimal balance between access restrictions and physicians’ willingness to prescribe. In addition to identifying the price range, the client also gained a better understanding of which restrictions have the most impact on utilization.
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