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Pharma Crossing New Frontiers With Global Tiered Pricing

Written by Stratinis | 01-Sep-2014 13:02:00

PharmaTimes reveals despite the adoption of sophisticated tiered pricing strategies by pharmaceutical companies around the world, there is only a tenuous connection with the products’ prices and the local economic conditions of the countries where they are launched, new research shows.

The researchers find that payers in emerging markets generally acknowledge that tiered pricing is in place in areas such as infectious disease, diabetes and hypertension. However, as emerging markets seek to increase patient access to important therapeutic breakthroughs for critical illnesses such as breast cancer, stroke and multiple sclerosis, they also find “significant appetite” among payers to see corresponding tiered prices for treatment of these diseases.

Pharmaceutical companies are keen to apply tiered pricing to these therapeutic areas but they also highlight the associated challenges, as the patient populations are too small to effectively implement a tiered pricing strategy. Also, the cost of manufacturing innovative products, particularly in the biotechnology sector, pushes the floor price already out of the range of many emerging economies.

Read more at: http://www.pharmatimes.com/Article/14-08-25/Pharma_crossing_new_frontiers_with_global_tiered_pricing.aspx#ixzz3C4GKQzX4

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