Pharmaceuticals

Challenges for the Pharmaceutical Industry

Due to the ongoing waves of mergers and acquisitions, the adaptation of new technologies, increasing research and development costs as well as the pressure to implement cost containment measures in the state-run healthcare sector, the pharmaceutical industry is experiencing a period of radical change. In response to these emerging changes in the general conditions, companies must either adapt their competitive strategies accordingly or risk becoming anachronisms. For the majority of companies, the key to securing future business success lies in effective product portfolio management, together with goal and market-oriented research and development, strategic cooperation and licensing as well as an effective profit-oriented pricing strategy.

SKP is one of the world’s leading management consultancies in the pharmaceutical and diagnostic industry:

• Worked with 24 of the 25 largest global pharmaceutical companies and 5 of the 6 leading biotechnology companies
• Devised strategies for 4 of the 10 best-selling drugs worldwide
• Completed over 50 projects that included a US managed care strategy segment
• Conducted healthcare projects in more than 30 countries
• Devised strategies for more than 20 medical device products

What do we offer ?

We are prepared to help clients strategically maximize profits at any stage in a product’s lifecycle such as product launch, market repositioning, and defensive tactics.

SKP can improve profitability throughout the product lifecycle

Our areas of expertise include problem-solving based on relevant, quantitative and qualitative analyses, as well as assistance in implementing those solutions in the following areas:

Strategy

• Strategic Management
• Competitive Strategy (COMSTRAT)
• Market Segmentation and Positioning
• Launch, Off-patent and Switch Strategies
• International Pricing & Reimbursement Strategies
• Internal Capability and Efficiency Analysis
• Portfolio Analysis
• Clinical Study Design

Marketing

• Marketing Analysis and Marketing Strategy
• Value Positioning
• Product and Service Optimization
• Product Value Analysis/Conjoint Measurement
• Price Optimization (PRICESTRAT)
• Price & Reimbursement Management and Price Implementation in Price-controlled Markets, Non-price-controlled Markets and Managed Care Markets.

How we price new pharmaceutical products


Pricing new products in a single country is a complex task because the price not only determines market share and profit of a product but also influences the access to the market.

Approval
Approval means getting access to the system, i.e. achieving registration, reimbursement and/or formulary listings. Pharmaoeconomic arguments are very valuable in taking this hurdle.
Learn more about pricing in an approval-predominant situation ...

Choice
Choice refers to the day-to-day decisions whether to use or prescribe a specific product. Here the price has a major impact on market share and profit. In order to develop optimized pricing strategies, the input of all decision makers is usually considered.
A comprehensive pricing approach must look at both approval and choice. Depending on the country, one might be more important than the other.
Learn more about pricing in a choice-predominant situation ...

Determination of the optimal price for a drug
The determination of a profit-optimal price for a drug is one of the most crucial and most challenging tasks when launching a drug. The input of various parameters has to be considered for the precise modeling of the market environment. The Pharma PRICESTRAT system generates the optimal price, sales- & profit forecasts and “if-then analyses” and provides guidance for the planning of marketing activities.
Learn more about how we relate price to value by means of the Pharma PRICESTRAT System ...

International pricing strategy of a drug
In times of free trade between countries and international price referencing, the setting of a drug’s national optimal price must take into account the impact on a drug’s sales in other countries. The international price corridor serves as an instrument to avoid price erosion and to contain the parallel trade of pharmaceutical products.
Learn more about the international price corridor ...

Project Examples

Development of an International Marketing Strategy and Business Plan for a New Analgesic

Development of an International Pricing Strategy for a New Anti-Psychotic Drug

Development of Competitive Strategies for a Lipid-regulating Drug and an Anti-fungal Drug

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