RESEARCH TRIANGLE PARK, NC--(Marketwire - October 29, 2008) - Pharmaceutical and biotech
companies report that the unmet needs of the pharmaceutical marketplace are
the most important factor when determining the price of a product according
to a new study, "Outcomes-Based Pharmaceutical Pricing: Meeting Stakeholder
Needs," published by competitive intelligence firm Cutting Edge
Information. 33% of respondents listed unmet market needs as the leading
contributing factor to price ahead of market entry position and
reimbursement environment with 24% and 18% respectively
(
http://www.pharmapricingstrategy.com). The emphasis on the value of new
therapies encourages pharmaceutical companies to seek out disease areas
with few drug options.
Rounding out the top seven criteria for determining price were competitor
pricing, price controls, health outcomes data, and delivery form. All of
these criteria typically factor into the pricing of a new therapy, however
respondents listed unmet market needs as the most crucial determinant.
"Pricing is one of the most important activities that pharmaceutical
companies must consider during a drug's development," said Elio
Evangelista, project lead of the study. "It's not surprising that
companies use the therapeutic area as a barometer for pricing their own
product. Choosing the right price can have a profound impact on the
product's success and longevity."
The 124-page report provides an in-depth analysis of pharmaceutical pricing
planning, processes, decision making and resources. Based on these
findings and surveyed companies' best practices, CEI analysts offer action
points to guide companies to set the right prices and optimize their
profits.
The report contains 400+ metrics. Data focus on pricing teams' structures;
phase-by-phase pricing processes and methodology; and spending and staffing
resources. Metrics include the following:
-- Resource support, innovative versus me-too drugs
-- Cross-functional involvement in pricing decisions
-- Share of companies with dedicated pricing departments
-- Lifecycle entry and exit points for functions involved in the pricing
process
-- 2008 pricing budgets and headcounts, by company size
-- 2008 headcounts broken down by geographic market and by company size
Contact Information: For more information, contact:
Elio Evangelista
919-433-0214
For media inquiries, contact:
Lucas Einstein
marketing specialist
919-433-0207