Model N launches International Reference Pricing solution for the pharmaceutical sector
Chertsey, UK, 7th October 2013: Model N has launched an International ReferencePricing (IRP) solution, providing advanced predictive insights for pharmaceutical companies. As a result, senior pricing professionals responsible for managing global, regional and local pricing dynamics can now assess the potential impact of pricing changes made today and anticipate future impact.
Adopting the Model N IRP tool, manufacturers can now substantially reduce margin erosion, by taking full control of price change management and defining the best possible strategies at every stage of the product lifecycle. Launch sequencing pricing, and for both on patent and off patent, can significantly impact margins and profitability, a key concern for pharmaceutical executives seeking clarity on gross to net.
The IRP solution includes enhanced simulation and modelling capabilities, enabling companies to take a proactive approach to decision-making with a clear understanding of the longer-term effects.
New data verification processes support this by always providing users with the accurate and relevant information at the right time. Also, by presenting data in a more personalised, easy-to-understand format, users can quickly and easily obtain the insights they need to take remedial action.
“In the pharmaceuticals market, the recent global economic crisis and decline of the blockbuster model have fundamentally changed the buyer/seller relationship,” says Niels Skov, managing director Europe, Model N. “With drugs purchasers under intense pressure to reduce healthcare costs, they are professionalising their tactics in finding new ways to drive down price.
“IRP is no longer simply a tool designed to inform initial pharmaceutical pricing but has become central to their ability to control costs. At the same time, IRP is being adopted on a global basis, with reference pricing being used in different ways throughout emerging as well as established markets, by governments seeking to keep healthcare costs down – and also by competing manufacturers.
“In response, pharmaceutical companies must seize back control of their global pricing planning processes from day one of the development cycle. Model N’s IRP solution makes this possible, by enabling them to establish an optimal launch sequence for each product and maintain end-to-end price and margin management for on-patent and off-patent products.”
Closing the value gap
Model N works with major global pharmaceutical companies managing their IRP processes. In the case of one biopharma company, Model N’s IRP solution has enabled it to reduce pricing erosion across its EU operation by 40%, saving millions of dollars, by automating thousands of price changes, enhancing accuracy and reducing non-compliance. Model N also attends industry forums such as the forthcoming eyeforpharma Value Added Services Europe event in October to promote a best practice approach to IRP implementations.
“Companies are increasingly recognising the importance of IRP but most have yet to develop effective responses,” confirms Skov. “A recent Model N survey, for example, found that an overwhelming 87% see IRP as pivotal to competitive advantage, yet only 12% have suitable technologies and processes in place. We believe that our latest IRP solution is the right product at the right time, bridging the gap between marketing and sales execution in overcoming this key business challenge.
“Change is happening fast and the issue of end-to-end IRP management can no longer be ignored,” concludes Skov. “The time to act is now.”
About Model N
Model N, the leader in Revenue Management Solutions, drives improved pricing, margin, and revenue performance through a powerful combination of best practices, highly configurable software applications, comprehensive services, and actionable analytics across the complete functional spectrum of pricing, contracting, rebating, sales, and marketing. Model N leverages its deep industry expertise to support the unique business needs of Life Sciences and Technology companies across more than 50 countries. Global Customers include: Allergan, Amgen, Atmel, Boston Scientific, Bristol-Myers Squibb, Dell, Hospira, Johnson & Johnson, Linear Technology, Merck, Marvell, Maxim, Micron, Nokia, Novartis, Novo Nordisk, ON Semiconductor, STMicroelectronics, and Watson Pharmaceuticals. Whether you are an emerging business or a global leader, Model N results in revenue. www.modeln.com
Model N is a trademark of Model N, Inc. Any other company names mentioned are the property of their respective owners and are mentioned for identification purposes only.
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