Who Are Those People?
William Osler, the famous doctor of the XIX century, the founder of Johns Hopkins School of Medicine wrote: “The most important is to determine what type of patient has the disease than what kind of disease has the patient.” This is especially relevant for the pharmaceutical market.
What Do Patients Need?
If every single of us for any reason should die then reducing frequency of one of the reasons may occur just at the expense of growth rate of the other. It may seem that the pharmaceutical industry will never run out of feeding her sources, that are fatal diseases which may be prevented with the help of medications.
Principles Of Pricing In Pharmaceutical Industry
Medical product should have clinical and economic value. Distribution helps to increase value of the product because it provides “place benefit”. Availability of the product there and then, where and when it is needed, significantly adds value to it.
Major Factors Determining Pricing
Lack of uniformity may become a cause for criticism but in fact it is a normal thing – there are no two companies with absolutely the same needs, philosophy and resources, and there are no two products with the same strategies of entering the market even if they are products of one and the same company.
Competition On Pharmaceutical Market
Pricing approaches depend on various factors such as needs and capabilities of the company, price elasticity of this segment of the market and also therapeutic value of the medication.
Herbal medicines - the best way
Herbal medicines are increasingly becoming the choice of most patients nowadays...
Release Of New Medications
High level of costs on promotion makes it difficult the release of new medication. If it is possible to incline decision makers at lower prices, then markets with significant costs on promotion may become a convenient place for using strategy of lower price, sure in case if you determine how much price should be lowered to attract customers.
Price Elasticity
In cases when patients are involved in treatment of such their diseases as diabetes, asthma, allergy, the ability of patients to promote medication may give company the possibility to set higher prices than do it officials responding for custom.
Characteristics Of Patients
In many markets, patients do not bear the direct financial cost on treatment but it is not common phenomenon. On markets where medications cost is not compensated totally in patient's favor, so their opinion - as they are final customers of new medication - should be taken into account when setting its price.
Pharmacy: Cost of Treatment
It would be reasonable to start development of new medication from economic aspect along with clinical ones. First of all it is necessary to study “financial structure” of the disease for treatment of which new medication is being created.