Case Studies - Pricing
Case Study: LSO
AMNOG Impact on Launch Sequence
A global pharmaceutical company was facing the following issue:
Goal: EU plus Turkey peak sales forecast of $1.1BN with 10-year total cumulative forecast of $8.3BN.
Strategy: Post EMA approval launch first in Germany.
Risk: AMNOG price cut may impact global revenues.
EAI Solution: Recommendation to delay launch in Germany by 8 months
If the IQWiG benefit appraisal concludes less benefit or no additional benefit, like for 37% of cases, the company will risk losing $305M in 10-year global revenue based on a 44% price cut post price negotiation with GKV.
If the benefit appraisal is considerable to minor, like for 63% of cases, the company will risk losing $71M in 10-year global revenue based on a price cut of 23%.
Early payer assessment, comparator analogues and competitor launch impact led to a high probability of a rebate in excess of 23%.
RESULTS: Client changed their launch plan in order to maximize global revenues
1.Significant improvement in pricing agility through global pricing intelligence.
2.Key insights and identification of high risk markets.
3.Execution of pricing strategies designed to optimize launch plan.
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.
Split the cut over two periods with 7% in Jan of year x and 7% in Sept of year x
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.