RESEARCH TRIANGLE PARK, NC--(Marketwire - January 20, 2009) - Health insurance companies are
forcing more patients to foot the bill for expensive prescriptions,
according to pharmaceutical business intelligence leader Cutting Edge
Information. Payors are increasingly transitioning higher-priced
prescription medications from a set price
co-pay to a percentage-based co-pay format. In many cases, patients are
asked to pay as much as 20-35% of the drugs they require for better health.
The shifting burden from insurance providers to patients puts drug
companies under increased pressure to set affordable prices for their
products when they first come to market in order to achieve optimal sales
uptake and return on clinical and commercial investments that rise above
the $1 billion mark. New research findings from Cutting Edge Information
corroborate this trend.
In its new report, "Outcomes-Based Pharmaceutical Pricing: Meeting
Stakeholder Needs" (
http://www.PharmaPricingStrategy.com), the company
finds that 56% of drug makers now begin pricing-focused market research
before initiating Phase III clinical trials. The added drug pricing
scrutiny will cause more companies to initiate their pricing activities
earlier. The report discusses the most effective ways to shape pricing
analysis to maximize product lifespan and returns.
"Although the pharmaceutical industry is more recession-resistant than many
other sectors, the insurance industry is not recession-proof," said lead
author Elio Evangelista. "If patients cannot pay for brand-name drugs,
they will either look for alternatives or simply do without, and that hurts
both patients and the pharma and biotech companies."
The 124-page report (
http://www.PharmaPricingStrategy.com) provides an
in-depth analysis of pharmaceutical pricing strategy, planning, processes,
decision making and resources. Based on these findings and on surveyed
companies' best practices, Cutting Edge Information analysts offer action
points to guide pharma and biotech companies in setting the right prices
and optimizing their profits.
The report contains 400+ metrics that analyze 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
-- Percentage 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: CONTACT INFORMATION:
Elio Evangelista
919-433-0214