Strategic Pricing

Between threat and opportunity
Pricing medication and medical technology products is, as before, one of the most important control levers for company success. Although price determination mechanisms differ from country to country, they do influence one another. The European reference pricing system for medication is an example of this fact. Accordingly, certain decisions may result in unforeseeable price spirals. Moreover, the importance of expiring blockbuster patents on pricing decisions should not be underestimated in the struggle for market share. For this, the core questions are:

• What options do companies have, and which relevant influencing factors should be considered?
• What influence does a pricing decision have on the price in other countries?

Understand connections
Reference price systems have a large effect on the business case in Europe and outside Europe (e.g. Japan). On the other hand, prices in other European countries directly affect the price in Germany with respect to reimbursement amount negotiations. Therefore, well-thought-out strategic pricing requires both knowledge of all influencing factors by the individual HTAs and of the interdependence of countries between one another.

Decisions are made from eventualities
SKC systematically deciphers the various dependencies in the European reference pricing system and presents them transparently in realistic scenarios. This gives pricing decisions makers complete confidence.

Across national borders and over hurdles
Our experience shows that communicating the specific complexity of the German market to headquarters represents a special challenge. For this reason, SKC also supports coordination with European and international organizations and, when necessary, conducts its own market research on pricing.