Analysis of pharmaceutical pricing team benchmarks reveals that 82% of dedicated pricing teams are involved in key decisions during a drug's clinical trials, as early as the pre-clinical stage.

Cutting Edge Information published a study, "Pharmaceutical Pricing Strategy: Developing Teams to Calculate and Communicate Product Value," finding that the largest single phase in which teams are first involved in pricing decisions is Phase 2. The next largest percentage of surveyed companies begins to develop pricing strategy during pre-clinical phases.

"Companies with dedicated pricing teams typically involve them before approval, at increasing rates as launch nears," said Jacob Presson, research analyst at Cutting Edge Information. "Few pricing teams are involved in pricing decisions during pre-clinical and Phase 1 trials. At Phase 2, this percentage jumps to more than half of surveyed companies (55%) and does not drop below that level until the drug reaches its second year on market. Dedicated pricing teams' involvement peaks during registration, with 82% of companies' dedicated teams engaged at that point."

Nearly three-quarters (73%) of companies' pricing teams do not cease involvement until after a brand's second year on market. However, a smaller percentage end their involvement by registration. One consultant interviewed for the study is only involved with company pricing decisions during pre-clinical and Phase 1 trials; the drug manufacturer presumably takes over responsibility from this point onward.

"Pharmaceutical Pricing Strategy: Developing Teams to Calculate and Communicate Product Value" (http://www.cuttingedgeinfo.com/research/market-access/pricing-reimbursement/) features product pricing support data covering key stages of development, ranging from the pre-clinical stage through a product's second year following launch.

Market access and pricing team managers have use this benchmarking study to:

  • Compare pricing teams' budgets, headcounts and structures.
  • Assess pricing team priorities, as well as health economics and comparative effectiveness research's usage in pricing decisions.
  • Provide the best and most accurate information -- through pricing studies and outcomes research -- to payers and stakeholders.
  • Mitigate challenges including reference pricing, healthcare reforms, austerity measures and government cost cuts.

For more information about pharmaceutical pricing strategy, contact Cassie Demeter at 919-403-6583.

Cutting Edge Information
Cassie Demeter, 919-403-6583