Abstract

PRICING STRATEGIES IN PHARMACEUTICAL MARKETING

Shreya Jaiswal*

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Abstract

Pharmaceutical pricing strategies are important in the industry, affecting revenue, market share, and patient access. This review considers the intricacies of pharmaceutical pricing, such as research and development expenses, regulatory regimes, and market competition. Several pricing strategies are covered, including value-based pricing, tiered pricing, and dynamic pricing. The effects of these strategies on the stakeholders such as the patients, payers, and manufacturers are also determined. The aim of this review is to create an extensive picture of pharmaceutical pricing strategies, which focuses on their strengths, weaknesses, and potential directions. The drug industry uses different pricing strategies to reconcile profitability with affordability and accessibility. Value-based pricing ties prices to clinical outcomes and value to patients, and dynamic pricing varies prices according to market conditions, competition, and demand. Tiered pricing provides different prices for the same product in different markets or segments, and price discrimination charges different prices to different customers depending on their willingness to pay. Drivers of pharmaceutical pricing are research and development expenses, regulatory frameworks, competition, and patient access and affordability. The intricate nature of pricing has a tremendous impact on the stakeholders such as patients, payers, and healthcare systems and emphasizes the importance of open and fair pricing mechanisms that put patient access and outcomes first.

Keywords: pharmaceutical industry, pricing strategies, value-based pricing, tiered pricing, dynamic pricing.