Pharma Pricing Strategy Helps Client for an Active Pharmaceutical Ingredient Manufacturing Company

Case Studies | January 2, 2023

Highlights of the Pharma Pricing Strategy Case Study

Industry Overview
Quantzig’s Pharma Pricing Strategy Solutions
About the Client
Challenges Faced by the Client
Pharma Pricing Strategy Solutions Offered
Pharma Pricing Strategy Business Impact

Role of Pharma Pricing Strategy in the Industry

First, we need to understand the role of pharma pricing strategy. Businesses in the pharmaceutical industry can drastically improve their understanding of what drives the customers buying decision by leveraging advanced analytics fordemand forecasting, combined with a robustpricingstrategy, a method used by businesses to aptly price their products/services taking into account expenses such as manufacturing, packaging and shipping, marketing, and adding a profit margin to it. Armed with data-driven insights, our pharmaceutical clients execute value-driven drug price benchmarking to optimize profits.

Apharma pricing strategyrevolves around a solid understanding of the complete decision-making process, which mainly includes understanding the roles of clinicians, payers, and patients.

Types of Pharmaceutical Pricing Strategies:

Value-based
Cost-based
Competition-based
Price skimming-based

Quantzigs experts have helped leading pharmaceutical organizations to drive better sales and gain a competitive edge. Get in touch with our experts now.

About the Client

The client is a EuropeanAPI manufacturingcompany based out of Germany, well known for manufacturing biologically active pharmaceutical drugs, and is a popular name in the list of API manufacturing companies across the world. Formed just after World War II, the client has 70+ patent APIs under their label.

Despite the huge in-house teams, the client wanted to enhance their pharmaceutical drug development, and hence they connected with our experts to understand what they can achieve!

Pharma Pricing Strategy Challenges Faced by the Client

The client was looking forward to launching a new line of products in the US and they were facing difficulties with devising a pharmaceutical pricing strategy as they were not completely aware of the competitive landscape in the pharmaceuticalindustry in the new market.

After attending one of our webinars, the client approached Quantzig to leverage theirvalue-based pharmaceutical pricing strategyand drug pricing benchmarking solutions which would help the client successfully launch their new line of products in the US.

The client wanted to accomplish the following goals –

Devise a value-based penetration pharmaceutical pricing strategy for launching their product in the US
Derive a drug price benchmarking model for the new markets
Analyze the competitive landscape in the European pharmaceutical industry

We help businesses to track your competitors pricing strategy in real-time through specially curated pharmaceutical pricing analytics dashboards. Request a free demo to know more.

Quantzig’s Superior Pharma Pricing Strategy Solutions

The drug price benchmarking experts at Quantzig conducted holistic research to understand the clients competition and their pricing strategy (drug price benchmarking), as well as taking into account the hidden factors that could impact the products price, such as different pharmaceutical regulations and drug pricing benchmarking in the US. This enabled the client to devise a holistic pricing strategy, allowing them to price their products differently than they do for theEuropean market. As a result, they were not only able to successfully penetrate the US market but saw a steady rise in their profit margins as well.

Business Impact

As a result of embedding pharmaceutical pricing strategy solutions, hidden factors impacting price, and price benchmarking in theirdecision-making process, the client was able to define the right price of their product.

The drug price benchmarking journey also sparked a rapid change of mindset across the organization, shifting employees from being sales-oriented tovalue-oriented.

Quantzigs pricing analytics solutions enabled the client to achieve the following in a span of six months –

Saved US$12,00,000 by implementing advanced drug price benchmarking
Drove sales and obtained a higher return on investment
Improved drug pricing transparency
Redefined their pricing strategy across the globe

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