Adaptive Choice Based Conjoint for Pharma Pricing – Using Mini-negotiations to set WAC and Net Pricing

ChiralLogic is pleased to announce our partnership with Cantab PI to bring Adaptive Choice based Conjoint (ACBC) to Pharma Pricing. We believe that this methodology can best match the types of complex tradeoffs that manufactures and payers undertake when considering pharmaceutical coverage. While every method has shortcomings, we believe that properly designed ACBC eliminates many of the most glaring challenges typical to other approaches.

Our approach brings together decades of pharmaceutical pricing expertise from ChiralLogic with an equally rich understanding of the psychology and mathematics behind advanced survey design from Cantab PI. And we believe that the missing part of the equation is you – partners from industry who understand the nuances and challenges of current Pharma pricing methods and want to create something better.

In short, our approach can:

  1. During product development – provide greater freedom to test clinical outcomes (NO NEED TO TEST VARIOUS Product Profiles whole cloth – can vary the value-based ELEMENTS within the Product Profile)
  2. Once commercial label is ready – allows much more freedom to vary WAC and Net pricing options
  3. Includes all elements of pricing negotiations including price protection
  4. Can include COMPETITIVE responses – for launch products and currently commercialized products

A more comprehensive look into the pros and cons of ABCB for Pharma products:

Advantages

  • Rapid – can be performed quickly
  • Collaborative – study design built from pharma, Cantab, and ChiralLogic inputs
  • Cost Effective especially versus Qual and Quant
  • Specific – provision of statistics to measure the difference between various options, configurations, and variables
  • Realistic – engages the payer more completely versus traditional quant
  • Flexible – better ability to differentiate between variables
  • Saves time – no more need to perform separate payer segmentation exercises (thus maximizing your QUANT investment)
  • Efficient – ability to generate deep insights from a limited number of respondents

Limitations

  • Bad inputs will lead to bad and unrealistic results (not unique to this approach)
  • Depends upon quality of the sample (not unique to this approach)
  • For best results, depends upon investment of time by in-house managed care/pricing team (a heavier burden here versus other methods)
  • Potential to skew the results based on presentation of false comparators or mis-interpretation of the product profile (especially early in development)
  • Takes longer than directed qual, yet produces much better outcomes/detailed findings

For more information on our approach, including sample questions – please click this link – ACBC Pharma Pricing Demo Canta PI ChiralLogic LLC

To open a discussion on how to bring this cutting edge approach into your organization –