1. The art of pricing in the pharmaceutical industry
There are many elements that pharmaceutical companies must consider when pricing their products. Recouping the large investment in research and development (R&D) is a key driver but others such as product lifecycle, patent protection, innovativeness, competition, government controls, and corporate philosophy all have an influence in the pricing decision thus making pricing one of the most complex economic decisions

2. Global pricing strategies for pharmaceutical product launches
This article provides a brief strategic overview of the types of constraints that manufacturers must overcome in order to implement a successful global product launch and determine the optimum price

3. Integrating pricing and reimbursement needs into drug development
There is increasing need for drug development teams to take into account the cost effectiveness of new products. Pricing and reimbursement needs can be integrated into the development programme allowing companies to demonstrate to purchasers that products represent good value

4. Assessing the pharmaceutical price modelling tools
Most pharmaceutical companies rely on surveys to set prices but survey techniques have unavoidable biases. Also, there are some key customers - particularly payers - that it is difficult or impossible to survey. This paper explains why you should consider simple econometric techniques to give you powerful guidance here and how these techniques can boost the accuracy of your price predictions even where you can do surveys. Lastly, the author explains why health economics are best reserved for price advocacy rather than price setting

5. Managing price throughout the life cycle of a pharmaceutical product: tools, timing and strategies
This article discusses the management of a product’s price throughout its lifecycle in the context of the complex global environment. An overview of key analytical tools is provided, along with a discussion of when they should be used. Material is divided into three lifecycle phases: research and development, pre-launch and post-launch

6. The importance of health economics in successfully achieving a sustainable price for reimbursement
A pharmaceutical product's success is largely due to its reimbursement price. Companies should use their expertise in health economics to justify to reimbursement authorities the price of a drug. Careful, in-depth assessment of the marketplace, market segments and reimbursement policy is essential if a price that is affordable for the authorities, acceptable to the company and supports customer values is achieved

7. Hospital negotiation - the use of health economics as a support for new product pricing
Healthcare systems in the western world are under pressure to deliver high quality services to an ever-demanding population. Several factors add to this growing pressure including innovation in medical equipment and pharmaceuticals. This article considers this problem from the perspective of the hospital purchasers and the pharmaceutical budget and the health economics methodologies that are used to assess products

8. The global AIDS crisis and drug pricing controv
AIDS is the greatest health crisis of modern times. Although pharmaceutical companies have discovered treatments in a relatively short time, the prices of these drugs are beyond many in developing world. This article reviews the controversial stance of the manufacturers who have argued against price reductions in face of political and public pressure. Some countries have ignored WTO rules and are sourcing AIDS drugs from generic manufacturers. However, things may change with the global fund to fight the epidemic

9. Trends in international pharmaceutical pricing and reimbursement
The use of reference pricing in Europe has been growing in popularity since it was first introduced in Germany in 1989. This paper looks at the advantages and disadvantages of both reference prices and international price comparisons and their impact on final price and industry competitiveness. The author argues that additional co-payments are needed to achieve price competition with reference prices and exchange differentials rates, choice of weights and sample used can bias any inter-country comparisons

10. The future of parallel trade in pharmaceuticals in Europe
Parallel imported pharmaceuticals make up the fastest-growing sector of the pharmaceutical market. European courts have repeatedly ruled in favour of parallel traders, who are generally free to export drugs from one country to another, to repackage products and to make direct or indirect use of trademarks. This article reviews the pharmaceutical industry defences against parallel importing and the future of the business

11. Pricing considerations for new products in Europe
Achieving the best price for a product requires the manager to take a top-down view of factors influencing the overall profitability. This article summaries those elements that a pharmaceutical company should consider when setting prices for the European market

12. Schering's policy of pharmaceutical price harmonisation in Europe
The control of pharmaceutical prices in the European market by national authorities pressurises company margins, encourages parallel trade and may be contributing the decline of the local pharmaceutical industry in comparison to the USA. German company Schering AG has adopted a centralised approach to price setting with overall European profits more important than country-level turnover. By launching new products in careful sequence and keeping prices within a narrow corridor all under head office control, Schering aims to reduce losses through exchange rate fluctuations and parallel imports

13. Bio-pharmaceutical Prices and the Effects on the U.S. Economy
TIAX studied the impact of market-based pricing patterns in the United States on bio-pharmaceutical innovation and related economic contributions. The study concluded that the sector contributes greatly to the economy and argues that pharmaceutical prices should remain high to support continued investment in research and development

14. What does the decision on the GlaxoSmithKline case in Spain now signify for differential pricing in Europe? –
Lorna Brazell
In 2001, GlaxoSmithKline were ordered by the European Commission to stop their dual pricing system for Spanish wholesalers which contravened the free market philosophy that underlies the EU. The case in attracted a great deal of attention because it was the first time a pharmaceutical company tried to justify differential pricing because of economic distortions in the market resulting from the differences in national pharmaceutical pricing and reimbursement regimes. This article reviews Glaxo's defence and the Commission's opinion.

Pharmaceutical Pricing Compendium

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