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Case Studies - Pricing
Case Study: IRP
“Beating the System”
A large Biotech facing an exogenous price cut of 12% in France planned in Jan of year x for a single brand. Total 3-year impact $198(m):
French market 3-year downside of $72(m).
IRP impact due to global referencing $126(m) over 3-year period.
EAI Solution: Recommendation to delay launch in Germany by 8 months
- The French price cut was actually 14% versus the original 12% requested.
French market 3-year downside of $76(m) versus current $72(m), additional $4(m) loss.
IRP impact based on splitting the price cut, $106(m), with an upside of +$20(m) versus original plan.
French payer pleased with outcome of gaining a higher price cut, and a good understanding of impact outside their market.
Client dampened the global IRP impact by skipping a calendar year for re-referencing.
Split strategy delivering +$20(m) upside versus original plan
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