RESEARCH TRIANGLE PARK, NC--(Marketwire - September 25, 2008) - Pharmaceutical and biotech
companies conduct pricing research much earlier in drug development than
they once did. The new study, "Outcomes-Based Pharmaceutical Pricing:
Meeting Stakeholder Needs," published by competitive intelligence firm
Cutting Edge Information, finds that 56% of companies begin pricing-focused
market research before Phase III of product development
(
http://www.pharmapricingstrategy.com).
Whereas 35% of surveyed companies initiate pricing research efforts during
Phase IIIa or Phase IIIb, 32% begin during Phase II. Meanwhile, 24% kick
off pricing research during Phase I or during Pre-Clinical development.
Another 9% wait until registration and launch to do so.
According to the study, third party payers, government entities and
independent watchdog groups have all amplified their requests for specific
efficacy, cost efficiency and health outcomes data -- these groups want to
see a compelling value story that dates back to the formative stages of
clinical development. In response to such demands, life sciences companies
have begun to quantify and to meet desired clinical endpoints earlier than
ever before.
"Market research campaigns that were once a thing of Phase III are now
taking place during Phase II, and even earlier in some cases," said Haley
Wynn, lead author of the study. "These companies want to get to know their
primary customers as well as possible, as soon as possible, in order to
make informed pricing decisions."
The 124-page report provides an in-depth analysis of pharmaceutical pricing
planning, processes, decision making and resources. Based on these
findings and surveyed companies' best practices, CEI analysts offer action
points to guide companies to set the right prices and optimize their
profits.
The report contains 400+ metrics. Data focus on pricing teams' structures;
phase-by-phase pricing processes and methodology; and spending and staffing
resources. Metrics include the following:
-- Resource support, innovative versus me-too drugs
-- Cross-functional involvement in pricing decisions
-- Share of companies with dedicated pricing departments
-- Lifecycle entry and exit points for functions involved in the pricing
process
-- 2008 pricing budgets and headcounts, by company size
-- 2008 headcounts broken down by geographic market and by company size
Contact Information: CONTACT INFORMATION:
For more information, contact:
Haley Wynn
919-433-0224
For media inquiries, contact:
Lucas Einstein
marketing specialist
919-433-0207