ABSTRACT

This chapter discusses the importance of payer and pricing research. The role of in-depth qualitative discussions is described, as well as a number of quantitative research techniques. The importance of avoiding bias has a large impact on methodology choice and executing research. Poor choice of methodology and poor formulation of research questions can easily lead to a dramatic underestimation of willingness-to-pay and suboptimal price setting. Pricing mistakes generally have a huge impact on profitability and return on investment. A qualitative payer and pricing research program should provide good insights into critical elements related to payer and prescribing decision making that can be expected to have an impact on the drug's development program and/or its price setting. The Van Westendorp method is useful in cases where there is no clear reference or multiple potential references for the price of a new drug or treatment. In ex-US healthcare systems the interlinked model for pricing analysis usually looks simpler.