The Product
A robust valuation model for pricing new pharmaceutical products can increase your return on investment in R&D and help produce revenues that fully reflect the value of the product. But to get to optimal product pricing, you need a complex model that incorporates a range of qualitative and quantitative value drivers and synchronizes price with product positioning strategies.
Optimal Pricing Strategy™ (OPS) by Net Margins gives you the ability to pinpoint optimal price for the launch of new products through advanced analytical tools developed by pharmaceutical industry veterans and incorporating state-of-the-art models and analytical techniques.
OPS generates assumptions for multiple price points based on a broad measure of product value and recommends optimal pricing for a particular point in time. The OPS model considers:
- the product's value proposition based on primary and secondary data and other relevant information brought together using our unique analytical methodologies
- the potential of key product attributes to drive value
- what portion of value can be harvested into price
- the current market for the product
- impact on existing treatment regimens
- likely response to different prices from competitors, policy makers, payors and consumers
OPS develops an understanding of how value is perceived by key decision makers in your value chain – policy makers, payors, prescribers and patients. It models scenarios of value chain participants’ choices to endorse, prescribe, dispense, consume and pay for a new drug.
THE OPS value matrix assesses the ability and inclination of value chain members to use the product and the extent to which they impact use of the product in the marketplace at various price points. By explaining the relative importance of various decision makers, OPS provides insights into overall price positioning for the product