Reference pricing increases as a major consideration in strategic plans for pharmaceutical launch sequencing

Pharmaceutical brand teams eager to maximize the price of the drugs establish intricate product launch sequencing strategies to target markets more favorable to higher value assessments, according to a new study published by Cutting Edge Information.

Reference pricing greatly impacts pharmaceutical companies’ launch sequencing strategies. A product’s price in its initial launch market is an anchor - the price point that other markets attempt to lower to save money. While some markets can set a favorable standard for a product’s value, launching too early in a low-value market can bring down prices for later launch efforts.

Cutting Edge Information’s study, titled Pharmaceutical Launch Sequencing: Mapping Commercialization Opportunities to Maximize Global Value and Expand Market Access, found that two-thirds of surveyed companies rank reference pricing as the most important factor for determining optimal markets for drug launch. Regulatory pressures and payer concerns were also among top factors.