The risks and factors that contribute to drug pricing
Industry:
Pharmaceuticals and Biotech
Offering:
Custom Decision Analysis Tools
Challenge
Drug pricing was a top issue in 2017, driven by the change in administration and greater scrutiny by a range of stakeholders. Our client sought to better understand the risks and factors that contribute to turning pricing decisions into public issues, and the opportunities to mitigate and manage those risks.
Approach
Discover
We began by conducting a landscape assessment of drug pricing practices and actions across the industry, and how drug pricing decisions are covered in the news, within third-party reports on pricing and value, Congressional reports, and other industry analyses; we analyzed the context of the decisions and the factors that led to public scrutiny of a price change.
Develop
We turned the drug pricing research into two tools for the client team:
- Single-slide case studies of the top drug pricing stories uncovered, what led to the public scrutiny and the ultimate impact
- A risk tool for measuring drug pricing decision-making risk based on analysis of the following factors: (1) company actions and/or reputation, (2) intrinsic risks relating to the products and/or therapeutic class, (3) specific characteristics and/or approach taken for the pricing action, (4) the external environment and (5) how specific stakeholder groups might perceive and/or respond to pricing actions.
Deploy
- The risk tool was presented to the US commercial team to provide a structured way to assess price change decision.
Results
The client team was armed with a tool that allowed them to take a step back and think critically and holistically about the risk involved with various pricing decisions and the areas to focus on to mitigate risk.
