Pricing an oral formulation for a bioequivalent COPD product
Strategies and Insights Driving Impactful Payer Decisions:
Pricing a Bioequivalent COPD Product
This case study highlights how Magnolia Market Access helped a biopharmaceutical company identify a pricing strategy for a new oral tablet formulation of an existing COPD infusion product, focusing on payer preferences and value proposition.
Key Insights Include:
- Challenge: Transitioning from a medical benefit infusion to a pharmacy benefit oral formulation while addressing payer expectations for cost-effectiveness and adherence benefits.
- Approach: Magnolia evaluated flat versus per-mg pricing models, balancing manufacturer, payer, and patient needs. They recommended flat pricing with a modest premium and rebate strategy to optimize coverage and formulary uptake.
- Outcome: Magnolia’s strategy achieved a 25% pricing premium over the infused product with rebates of 9–12%, resulting in a positive formulary reception and gross-to-net revenue projections of 14%.
Highlights:
- Payer Insights: While payers value cost predictability, they generally do not pay extra for convenience, emphasizing utilization management strategies.
- Recommended Pricing Model: Flat pricing was favored for simplicity, with a 25% premium to reflect adherence benefits and reduced waste.
- Value Proposition Expansion: Magnolia advised data collection on improved adherence to enhance the long-term value of the product in payer negotiations.
Download the full case study to explore how Magnolia’s strategic pricing insights empower biopharmaceutical companies to align with market dynamics and achieve competitive success.
