Highlights of the Case Study:
|Client||A US-based generic drug manufacturer partnered with Quantzig after having trouble pricing prescription refills due to the debut of new generic drug makers.|
|Business Challenge||The customer intended to use our competitive analytics technology to analyze and keep an eye on the pricing tactics of its rivals in all geographical areas and across all medicine categories.|
|Impact||Quantzig’s pricing gap analysis tools helped to check for price changes in each medicine type and category when renewing prescriptions and even compare those changes to the client’s drug price. It also provided inputs on stock availability in production facilities, thus, enabling the client to take prompt action.|
Game-Changing Solutions for the Pharmaceutical Industry
Drug expenses significantly contribute to the steep rise in global health care spending. Due to recent public outrage at the skyrocketing costs of quality healthcare, prescription drug costs have become a hot political and media topic. The evaluation of the general impact of healthcare includes drug costs, which have expanded from academic and governmental levels to the more significant societal level. Additionally, suppose a doctor states upfront that follow-up visits for prescription renewals are unnecessary. In that case, the pharmacist, in collaboration with the doctor, may treat the patient’s prescription for the same drug as a refillable one.
In the pharmaceutical sector, pricing research is crucial for organizations to comprehend the current market environment and anticipate future pricing of drugs. Quantzig’s pricing analytics and competitive benchmarking can help pharma companies evaluate the competitive potential of a particular drug globally and provide both region and country-specific overview.
The Challenge for Our Client
The US-based generic drug manufacturer partnered with Quantzig after having trouble with significant pricing fluctuations on prescription refills as a result of the debut of new generic drug makers. The customer intended to use our competitive analytics technology to analyze and keep an eye on the pricing tactics of its rivals in all geographies and across all medicine categories. Additionally, the client sought to increase its revenue streams. The client lost a network of wholesalers that assisted in distributing medications to pharmacies to a new entrant since it priced its drugs very affordably. Some of the issues that the client needed to address were as follows:
- Temporary shortages and significant price increases in the generic medicine market
- Outdated information across databases
- Medical errors that led to human and financial costs
- Brand-name biologic drug prices were higher than generic competitors
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Quantzig’s Price Analytics Solutions
Quantzig’s data-driven price analytics tools enabled them to identify trends and patterns in customer behavior and track important pricing indicators to develop the best pricing plan that maximized profit. It specified the client’s items and sequentially saved them in the software with competitor product prices following their respective active pharmaceutical ingredients (APIs). By concentrating on aspects of healthcare utilization, such as visits, prescription information, and patient and prescriber demographics, Quantzig’s method predicted refill adherence. The system also kept track of market price fluctuations, identified past pricing trends, listed the brands that offered comparable medications, and generated an email alert if a rival offered similar drugs for less money.
Impact Analysis of Quantzig’s Price Gap Analytics Solutions
Quantzig’s pricing gap analysis tools allowed the client to monitor price changes in each medicine type and category when renewing prescriptions. The pricing analytics and monitoring software’s price comparison feature also exposed information about stock availability in production facilities, enabling the client to take prompt action. Quantzig’s pricing analytics solutions helped unlock the following benefits for the client:
- Gain real-time knowledge of other generic drug manufacturers’ drug costs
- Improve revenue streams
- Monitor the availability of drugs in the competitor stores
- Access historical pricing data
- Cut back on labor hours while increasing reserves, thus ensuring optimum utilization of all resources
Implementing Quantzig’s recommendations based on our price gap analytics tools helped the client gain better visibility into available stock, understand competitor pricing strategies, and leverage historical pricing data. All these data points helped our client to create an effective pricing strategy that would ensure prescription refills without losing business to generic drug makers. This created a win-win situation for our client and its customers, who could renew their prescriptions at competitive prices without compromising on quality medication or health outcomes.
Broad Perspective on Pricing Gap Analysis in the Pharmaceuticals Business
An increasingly common method to increase adherence to pharmaceutical regimens is synchronizing medicine refills, which involves simultaneously renewing all medications from the same pharmacy. However, there is little evidence to support this method’s efficacy. Efforts to increase medication adherence are crucial for several stakeholders, including patients, medicine suppliers, and financiers. Non-adherence to regulations can compromise health outcomes, increase costs due to worsening disease and complications, and make it difficult to assess whether a patient’s treatment is working.
Programs that make medication more easily accessible are vital since sustained adherence necessitates a sufficient supply of medication. For patients using multiple maintenance drugs, who frequently have the added burden of refills being due at various times, the logistical hurdles of keeping track of remaining pills and obtaining timely refills and renewals are heightened. This can need making several journeys to nearby retail pharmacies, remembering multiple renewal dates for mail-order pharmacies, or both. Every stage of this procedure has the potential for the development of a supply issue and, consequently, an adherence issue. Pricing analytics tools can automate several of these processes to remove roadblocks and ensure optimum benefits to all stakeholders, be it the pharmaceutical client or the patient for whom timely adherence will ensure better clinical outcomes.
Key Takeaways of Price Gap Analysis:
- Provide competitive benchmarking
- Monitor availability of drugs at competitor stores
- Leverage historical pricing data
- Ensure optimum utilization of all resources
- Establish correct pricing strategies
- Improve revenue streams
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