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In response to heightened price pressure and the intricacies of the current payer landscape, the pharmaceutical industry must prioritize realizing drug’s full value potential by making optimal pricing decisions. In navigating this challenging environment, pharmaceutical companies are strategically refining their organizational setups. This paper examines crucial aspects of governance structure, operational setups, and decision-making processes within pricing. Special attention is given to the distinct challenges encountered in establishing effective pricing governance. The exploration extends to practical insights and a case study derived from Pricia’s extensive experience in numerous pharmaceutical pricing projects.
This paper aims to provide insights into the optimization of pricing decisions across the life cycle, where each phase might require different involvement from decision makers and stakeholders. Moreover, different capabilities from the teams and granularity of analysis should be applied to optimize decisions. Lastly, every organization is different from an organizational and cultural perspective, which requires tailoring of all these perspectives to the individual organizational needs. It is certain that there is no one-size-fits-all decision-making process, however there are universal best practices that should be considered by every organization.
Universal best practices in making better pricing decisions
Applying a systematic and consistent approach to pricing decisions is crucial to the quality of the decisions but also how pricing teams are perceived in the organization. It requires a large cross-functional effort of pricing teams to ensure full alignment with the strategy for the product or company in question. To ensure that the pricing elements are always linked to these objectives and are under control, it is imperative to have a well-structured decision-making process in place. Based on Pricia’s deep industry experience the critical elements are summarized in the illustration below and the next paragraphs will summarize key considerations for each.
Download our latest Thought Leadership Series
In response to heightened price pressure and the intricacies of the current payer landscape, the pharmaceutical industry must prioritize realizing drug’s full value potential by making optimal pricing decisions. In navigating this challenging environment, pharmaceutical companies are strategically refining their organizational setups. This paper examines crucial aspects of governance structure, operational setups, and decision-making processes within pricing. Special attention is given to the distinct challenges encountered in establishing effective pricing governance. The exploration extends to practical insights and a case study derived from Pricia’s extensive experience in numerous pharmaceutical pricing projects.
This paper aims to provide insights into the optimization of pricing decisions across the life cycle, where each phase might require different involvement from decision makers and stakeholders. Moreover, different capabilities from the teams and granularity of analysis should be applied to optimize decisions. Lastly, every organization is different from an organizational and cultural perspective, which requires tailoring of all these perspectives to the individual organizational needs. It is certain that there is no one-size-fits-all decision-making process, however there are universal best practices that should be considered by every organization.
Universal best practices in making better pricing decisions
Applying a systematic and consistent approach to pricing decisions is crucial to the quality of the decisions but also how pricing teams are perceived in the organization. It requires a large cross-functional effort of pricing teams to ensure full alignment with the strategy for the product or company in question. To ensure that the pricing elements are always linked to these objectives and are under control, it is imperative to have a well-structured decision-making process in place. Based on Pricia’s deep industry experience the critical elements are summarized in the illustration below and the next paragraphs will summarize key considerations for each.