Identifying Optimal Pricing, Evolution, and Premium for Drug X through Evidence-based Considerations
The objective was to understand the price potential of an antibody-drug conjugate (ADC) for treating breast cancer, in EU4 and UK, and to identify evidence to achieve a premium price.
CLIENT SITUATION
● Client had Drug X, an antibody-drug conjugate (ADC), to treat breast cancer patients in Phase II, and wanted to understand its price potential in EU4 and UK.
● The client was expecting a thorough assessment to identify evidence needed to achieve premium price and shape the Phase III study.
KEY BUSINESS QUESTIONS
● What is the ADC ex-manufacturer price in EU4+UK?
● What are the typical discounts and rebates offered to payers?
● What price range will be acceptable to payers based on the current Drug X TPP?
● What additional evidence is needed to achieve a premium price point?
● How will the price acceptance change if there is a first launch in the Stage III patient segment?
OUR STRATEGIC APPROACH
● Leveraging desk research and subscribed sources (IHS POLI) to identify ex-manufacturer price of in-market ADCs.
● Defined price ranges to be tested via Van Westerndorf approach in Payer research to identify acceptable price points for Drug X. Add-on TPP scenarios were tested to understand their impact on discounting/rebate considerations.
IMPACT
● Drug X’s TPP aligns well with payer expectations. Thus, the drug would be well-positioned to secure acceptance at an accessible annual cost
● As the Stage III drug launch was on the horizon with an initial discount already expected, we informed our client that payers would likely push for further discount
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