Pricing for pharmaceuticals has never been more complex, and establishing optimal pricing across key strategic markets, with different evidentiary requirements, standards of care, comparator prices and assessment processes, poses enormous challenges for the industry. In this article, we examine the major factors influencing pricing, and chart a course for success by highlighting three key components for pricing strategy development.
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Weighing multiple factors to determine optimal launch pricing without tipping the scales
The pricing of innovative pharmaceuticals and medical technologies is coming under increasing scrutiny, with payers, prescribers and the public challenging the relationship between incremental clinical benefit and increasing cost.
Even when high-cost therapies deliver significant improvements in health outcomes and may be considered to be cost-effective, payers’ focus will tend to shift to budget impact and financial sustainability.
Ultimately, a complex mix of interrelated factors, including level of unmet need, societal and clinical demand, unit price, the level of clinical benefit, budget impact, the price points of relevant comparators and the potential value of cost-offsets are driving access and uptake.
So determining optimal launch pricing has to take account of these drivers, together with the views and behaviors of payers, physicians and patients.
Never before has there been more pressure on pricing for pharmaceuticals:

Just one chance to get it right. Once a pricing strategy is in place, course corrections are difficult and sometimes impossible; for example, price increases in ex-US markets. Clearly, leaving money on the table is a major concern, but exceeding what may be considered to be an acceptable price threshold could be as bad, if not worse. A subsequent change in pricing strategy may fail to repair payer and prescriber perceptions and remove access and utilization hurdles.
More competitive markets. Many indications, even in oncology and specialty care, have become commoditized at one end, and highly competitive at the

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