Abstract
Introduction
In 2007, we are approaching a tipping point in the standoff between drug
customers/payers and drug producers, each striving to achieve an advantage in
the struggle between drug cost versus drug price. The solution to this
struggle between closely aligned yet combative industry forces lies in the
creation of win-win solutions that benefi t not only payers and industry but,
more importantly, society as a whole.
Questions Answered in This Spectrum Report
- In today' s complex pharmaceutical marketplace and prescription
decision-making process, monetary issues now reign supreme. How has the
cost/price issue infl uenced the decision-making process of drug customers and
health care providers? Of drug manufacturers?
- A paradox has evolved in today' s health care industry: treatment is
growing more expensive, but more and more people are demanding to be treated.
How is the desire for universal health care coverage confl icting with the
reality of the market? What sort of middle ground will emerge with regard to
coverage that will satisfy both parties?
- The advent of knowledgeable and fi nancially motivated customers has
irrevocably changed the way in which buyers perceive drug price. What is the
perception of drug price in the context of health care costs? How can the
pharmaceutical industry infl uence or alter this perception?
- The path to success in the dynamic between the health care customer and
pharmaceutical industry is not through a decisive victory of one side over the
other. What changes in the customer/industry relationship will ensure future
success for pharmaceutical companies? What new stratagems could be adopted to
yield winning solutions for both parties?
Scope
- Drug cost/price criticisms: critics' emotional and economic positions
against perceived high drug costs.
- The battle lines: entrenched customer positions about health care costs
and pharmaceutical industry positions on price.
- Current cost/price stratagems: strategies used by customers and the
industry to manage costs and prices.
- Value/price concessions: select industry pricing strategies that refl ect
a more value-based approach to pricing.
- Market outlook: methods for creating a win-win pricing environment and our
forecast for future customer/industry dynamics.
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