Pavan Anne co-wrote this blog post with Jim Adelizzi.
In this new era of personalized medicine, matching the right patient with the right targeted therapy requires pharmaceutical and diagnostic companies to reach across industry lines and collaborate long before launch. Together, they need to create a strategy that enables the companion diagnostic to differentiate and accelerate the therapy rather than impede its growth. I’ve witnessed a few ways that these entities can create a go-to-market strategy in unison and carry that tight-knit collaboration all the way to market. To illustrate the inherent challenges, let’s consider the case of two fictional oncology companies that have entered into a research and commercialization agreement: Pharma Depot Co. and Diagnostics “R” Us Inc.
The power of optimized pricing and contracting practices can be distilled down into a simple formula: Selling more at a higher net price while reducing the cost of operations will result in sustainable profit growth. Yet many medtech companies struggle to find effective ways to aggregate, assess and analyze pricing and contracting data, and to generate relevant insights to maximize sales for existing contracts, optimize price offers for new contracts, and streamline all supporting processes. Put simply, they’re leaving money on the table.
pricing and contracting