Quantzig’s Pharmaceutical Pricing Strategy: What is it all about?
Businesses in the pharmaceutical industry can drastically improve their understanding of what drives the customer’s buying decision by leveraging advanced analytics for demand forecasting, combined with a robust pricing strategy, 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.
A pharmaceutical pricing strategy revolves 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:
- Price skimming-based
Quantzig’s experts have helped leading pharmaceutical organizations to drive better sales and gain a competitive edge. Get in touch with our experts now.
The client is a European API manufacturing company 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.
The Business Challenge
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 pharmaceutical industry in the new market.
They approached Quantzig to leverage their value-based pharmaceutical pricing strategy and 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.
The drug price benchmarking experts at Quantzig conducted holistic research to understand the client’s competition and their pricing strategy (drug price benchmarking), as well as taking into account the hidden factors that could impact the product’s 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 the European 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.
As a result of embedding pharmaceutical pricing strategy solutions, hidden factors impacting price, and price benchmarking in their decision-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 to value-oriented.
Quantzig’s 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