The ability to strategically price a product in a changing market can be challenging. The traditional price setting process is influenced by several key factors: the manufacturer (production cost and quality of product), the customers and consumers (willingness-to-pay), and the market (market dynamics and competitors). A successful pricing strategy should take into account all of these factors to arrive at a value-based price (VBP).
Quintiles has developed a flexible and adaptable value-based pricing framework that can be applied to any therapeutic area and used to evaluate any number of varying product profiles. It involves understanding how payers value asset attributes and how their willingness-to-pay helps quantify each individual attributes’ contribution to a price. Likewise, the VBP framework can inform what asset attributes contribute to physician prescribing and how their willingness-to-prescribe can translate into market uptake. Because this VBP framework incorporates views from multiple stakeholders, such as payers and physicians, the resulting outputs can be incorporated into other efforts like forecasting estimated market share, prescribing and uptake; or likelihood of coverage and level of reimbursement.