Contracting for product facing patent expiration
Situation: CRA was retained by a major pharmaceutical company to develop a contracting strategy to support its pain management product that was facing patent expiration, and to explore the opportunity for a new longer-duration formulations
- Conducted an opportunity assessment of the expected launch of longer-duration formulation and conducted market research studies addressing key stakeholder reactions from physicians, patients / caregivers, and payers
- Identified the optimal price range for the product and estimated the potential market share based on physician willingness to prescribe and patient cost sensitivity
- Identified optimal patient targets based on site of care, and assessed payers’ willingness to pay given the expected availability of multiple generics within the therapeutic class
Result: Client executed a segment-specific contracting strategy for payers (managed care, Medicaid, Long-Term Care, VA) that helped mitigate risks of upcoming generic launches.