RESEARCH TRIANGLE PARK, NC--(Marketwire - October 9, 2008) - Managed care organizations
(MCOs) and other third party payers were ranked the most influential
external stakeholders in pharmaceutical pricing according to the new study,
"Outcomes-Based Pharmaceutical Pricing: Meeting Stakeholder Needs,"
published by competitive intelligence firm Cutting Edge Information. Of
the companies surveyed, 86% listed MCOs and third party payers as the most
influential external stakeholder influencing pricing.
(
http://www.pharmapricingstrategy.com).
MCOs and third party payers certainly have a fair amount of influence on
pricing strategies, but they are not the only external stakeholders
concerning the drug industry. Also receiving a high percentage of the
voting -- 80% -- competitor companies/products were narrowly edged out for
the top spot. Not far behind, government payers ranked third on the list,
with 77% of the vote. Physicians ranked fourth, garnering 66% of the vote.
Pricing departments must do a fair amount of market research on MCOs, other
third party payers and government payers when formulating a drug's pricing
strategy. According to the study, executives are finding it harder to get
these payers to cooperate with their research efforts. Often, payers will
refuse to take part in phone interviews, fearing their participation may
give the drug company the upper hand in negotiations.
"MCOs and other payers cover a significant percentage of costs for
pharmaceuticals each year," said Haley Wynn, lead author of the study. "It
does not surprise me to see them so high on the list of stakeholders
influencing pricing decisions."
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. 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: CONTACT INFORMATION:
For more information, contact:
Haley Wynn
919-433-0224
For media inquiries, contact:
Lucas Einstein
Marketing Specialist
919-433-0207