RESEARCH TRIANGLE PARK, NC--(Marketwire - Apr 18, 2011) - Pricing groups in the life sciences industry are taking on greater responsibilities to meet the demands of a more complex regulatory and competitive landscape -- and budgets at leading companies are rising accordingly, a new study finds.
"In the past, assigning a price was often one of the last steps for a drug- or device-maker before market entry," said Adam Bianchi, chief operating officer of Cutting Edge Information, which conducted the new study. "But government regulations, payer involvement and more sophisticated competitive messaging now drive this issue much sooner in the development process."
Top 25 companies reported the greatest budget increase from 2010 to 2011, at six percent, on average. Coming close behind at five percent were medical device companies. "Investing ample resource support is imperative to build a team capable of handling demands from internal and external stakeholders in an increasingly complex global market," Bianchi said.
Executives interviewed for the study noted that expanding resources for pricing makes particular sense for large companies given the sheer size of their blockbusters, their global scope, and the complexity of niche and emerging products. Regardless of company size, setting a product's price correctly can mean the difference between optimizing a brand's performance and coming in below expectations.
The new study, "Global Pricing Strategy: Maximize Revenue in an Evolving Economic Climate," examines benchmarks for pricing group structure, spending, staffing and process measurement. The findings include data segmented by Top 25, Top 50, small company and medical device companies.
To place these benchmarks in a larger context and show their current and future implications for pricing teams, the study explores major trends and goals including:
* Global launch sequencing
* Innovative measures for ROI
* Strategies for achieving organizational buy-in
* Growing company/payer experience in risk-sharing agreements
* Increasing focus on comparative effectiveness
* Europe's economic austerity policies
* Government-mandated price cuts
* Parallel trade and reverse importation in both developed and emerging markets
* Implementation of new U.S. regulations
More information about the report is available at http://www.cuttingedgeinfo.com/pricing-reimbursement/ . For more information about the latest research on Pricing and Market Access, contact Elio Evangelista at +1 919-403-6583.
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