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CaseStudy Price Point v2

The document discusses a case study where a pharmaceutical firm hired Mu Sigma to discover the optimal price point for its new first-line treatment drug. Mu Sigma analyzed treatment options and their costs, effectiveness, and side effects to identify the price threshold that would make the client's drug the most cost-effective option. This optimal price point allowed the client to maximize their market share by positioning their drug as the most cost-effective first-line treatment.

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Saket Agarwalla
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38 views1 page

CaseStudy Price Point v2

The document discusses a case study where a pharmaceutical firm hired Mu Sigma to discover the optimal price point for its new first-line treatment drug. Mu Sigma analyzed treatment options and their costs, effectiveness, and side effects to identify the price threshold that would make the client's drug the most cost-effective option. This optimal price point allowed the client to maximize their market share by positioning their drug as the most cost-effective first-line treatment.

Uploaded by

Saket Agarwalla
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CASE STUDY

Price Point Discovery for First Line Treatment Drug


Want to know the ideal price point for your best-in-class drug?
ABOUT THE CLIENT

Mu Sigma helped a large pharmaceutical firm discover the optimal price point for its best-inclass first-line treatment drug that allowed it to maximize market share by being the most costeffective treatment option on the market.
CHALLENGE

Our client had a best-in-class drug for first-line treatment in certain therapeutic areas, and needed to find the ideal price in order to maximize its market share by making it the most cost effective treatment option vis--vis the competition.
APPROACH

In order to come up with the optimal pricing strategy we listed down all the treatment options for the indication along with the associated economic costs. A thorough survey of literature and published market data was performed to prepare a list of treatment options available for the therapy area along with the compliance and effectiveness of each option. This was then supplemented by computing direct and indirect treatment costs, including the likelihood of possible side effects and the impact of side effects on the overall treatment cost for each of the identified options. A ranking of options based on cost-effectiveness, and a sensitivity analysis on price helped identify the optimal price-threshold that ensured the drug was the most costeffective treatment option available on the market.
OUTCOME

The optimal price point discovery allowed the client to gain market share by pitching its drug as the most cost effective treatment option on the market.

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