Manufacturer Seeks Pre-Launch Rebate Level Forecasting
Industry
Pharmaceutical Manufacturer
Problem
A pharmaceutical manufacturer client needed to forecast the potential rebates that would be required to compete with generics to a competing product in the same therapeutic category. The manufacturer needed a model that estimated future costs to assist with scenario planning.
PHSL Solutions
PHSI identified four potential scenarios that could impact the not-yet-launched brand product. For each scenario, PHSI identified the assumptions, variables, and calculations to determine the investment in rebates for the brand to be competitive in each scenario.
Results
PHSI’s model revealed a range of potential rebates and included a dynamic model that permits the manufacturer to adjust the variables to test additional scenarios. The manufacturer used the model to assist with their strategic pricing decisions during pre-launch planning.