Background
A biopharma company with a recently launched rheumatoid arthritis drug asked L.E.K. Consulting to define the optimal price strategies for the 12-18 months post-launch in Germany under different market conditions. Our engagement also included Gemeinsamer Bundesausschuss medical benefit assessment outcomes for competitors as well as their potential pricing response.
L.E.K.’s approach
Our case team defined the most relevant scenarios based on expected competitor pricing dynamics, which were informed by analogue research. We leveraged existing price sensitivity data to determine revenue-optimized price points in each scenario, adjusting for medical benefit assessment outcomes and changes in competitor pricing. We then produced pricing strategy recommendations for each scenario, including potential revenue uplift generated over different time horizons.
Value delivered to the client
L.E.K. produced price strategy recommendations for key scenarios, allowing the client to prepare a playbook of price reactions for a range of potential future market developments (see Figure 1).
