Highlights of the Case Study:
|A major pharmaceutical company was struggling to set optimal prices for the launch of its new product.
|The lack of a robust pricing strategy prevented our client from setting an optimal launch price for its products. The client understood that poor launch performance could lead to long-term challenges; therefore, it collaborated with Quantzig to execute a confident go-to-market strategy.
|Quantzig’s pricing analytics solutions helped the client to create predictive pricing analytics models to forecast profitable opportunities. This helped the client increase margins and eliminate risks during the product launch.
Game-Changing Solutions for the Pharmaceutical Industry with Pricing Analytics
Not only for the pharmaceutical industry, rather new product launch strategies are indispensable for all industries. With growing costs associated with drug development, the significance of getting a new drug launch right has never been greater for global pharma companies. A successful new product launch strategy in pharma must overcome a series of barriers, including increasing pricing pressure and high expectations among caregivers and patients. Additionally, the upheaval caused by the pandemic and its economic repercussions has added further complications to what was already an extremely risky launch environment.
However, pharma companies can reshape their product launch strategies and prepare for uncertainties ahead by leveraging Quantzig’s tailor-made pricing analytics solutions. Our solutions help pharma companies experiment with their pricing options for better market penetration. More importantly, Quantzig’s solutions enable its clients to understand market dynamics and customer sentiments to increase revenue, fight churn, and reduce acquisition costs.
The Challenges of the Pharma Client
A major pharmaceutical company partnered with Quantzig to develop an optimal pricing strategy for a new drug. The client was unable to understand the changed market conditions and was concerned about being able to generate optimal revenue within a stringent timeframe. Owing to the lack of a robust pricing strategy, the client struggled to set optimal prices during the launch. As the client was aware that poor launch performance could lead to long-term challenges, they sought professional help from Quantzig to execute a confident go-to-market strategy.
With our robust pricing strategies, our client wanted to introduce a new product launch strategy to set optimal prices during their product launch.
Quantzig’s Price Analytics Solutions
Quantzig performed a holistic launch price evaluation before deploying its pricing analytics solutions. Our team extensively studied key payer groups from commercial, Medicare, and Medicaid plans. These studies helped Quantzig understand the significance of clinical and commercial factors in the customer’s decision-making process. In addition, this allowed us to assess the acceptability of different price points and price structures.
Quantzig’s team also captured insights from specialists from a larger sample, which helped them evaluate prescribing price sensitivity on a practice level. The team used this data to estimate the expected volume usage levels while considering other important factors such as dosing, compliance, and persistence. Following this extensive evaluation, Quantzig deployed its price analytics solutions, enabling the client to proactively adjust prices to fulfil customers’ needs. While adjusting the price, the solutions ensured to optimize organizational profitability. In addition, the client was able to create predictive pricing analytics models to forecast profitable opportunities. This helped them increase margins and eliminate risks during the new product launch strategy in pharma.
Impact Analysis of Quantzig’s Pricing Analytics Solutions
With Quantzig’s pricing analytics solutions, the pharmaceutical company’s product team confidently made strategic and tactical pricing decisions. Quantzig prioritized several factors with the new product launch strategy in pharma and identified the right price that returned optimal revenue in the current market. Today, the client sells the product successfully on the prices recommended by Quantzig.
Quantzig’s pricing analytic solutions helped the client unlock the following benefits:
- The solutions identified and captured the right market and competitive insights.
- Quantzig’s solutions helped the client accelerate approvals, assess risk, and establish appropriate pricing.
- The solutions evaluated several price points.
- The solutions enhanced the speed to market.
- They helped the client develop a comprehensive go-to-market strategy.
The overall result of these interventions was the successful launch of the product at an optimal price that took into consideration several factors such as manufacturing and R&D costs, competition within the market, country-specific regulations, consumer need and affordability, and profitability for the client. Our intervention also helped create a benchmark for go-to-market strategies for products that will be launched in the future.
Broad Perspective on Pricing Analytics Solutions for Pharmaceuticals Business
A successful launch strategy for products in the pharmaceuticals industry involves much more than determining the price. There are several factors that need to be considered, such as product positioning, reimbursement negotiations, demonstration of clinical attributes of the therapy, as well as guarding against the possibility of a generic or new competitive entry. Other factors such as country-specific regulatory environments also need to be taken into consideration. Quantzig’s Pricing Analytics Solutions are helpful in carving out an effective strategy that will help accelerate approvals, assess risk, and establish appropriate pricing for pharmaceutical products.
- Minimize potential loss in revenue resulting from lack of effective planning
- Highlight the clinical attributes of the new launch and create product needs and awareness
- Assess the competition in the market and suitably position the new product
- Evaluate country-specific regulations that are likely to impact launch and pricing
- Initiate reimbursement negotiations with insurance and healthcare services, etc.
- Devise a holistic 360-degree GTM strategy prior to the launch of a new product