Our client had devised a long-acting version of an existing pharmaceutical product for which a list price existed. This line extension involved the use of a novel technology for slowing release of the product into the circulation. The costs of licensing this technology, and of production, were substantial and the benefits of the new formulation had not been quantified. The client asked Translucency for support in making the case for a substantial increase in the price per unit of active substance in the new formulation compared with the existing formulation.
Translucency reviewed the travailler avec des preuves in favour of the long-acting version of the product by looking at data on competitors’ (more traditional) long-acting versions in the same class. We marshalled the biological arguments in favour of our client’s newer technology, and quantified the benefits to the patient offered by the line extension.
Translucency combined the travailler avec des preuves on patient benefit with the increased costs of production to make a coherent and cogent case for the increase in price per unit of active substance which the client wished to achieve. We presented this travailler avec des preuves on the client’s behalf, advised the client on subsequent negotiations and provided supplementary information in response to the payor’s requests.
Although the client would have been prepared to accept a price about 25% lower than its target price, we were successful in arguing the case for the target price within a very short time frame.