ABSTRACT
In this chapter, the authors will look at pricing strategies from a global perspective. They will evaluate the need for a globally coordinated pricing strategy and discuss, step by step, how we should go about defining the right strategy for the drug’s global business opportunity. There are two good reasons to maintain a fairly strict global pricing strategy: A global pricing strategy will consistently support the global marketing strategy and other supporting medical and operational strategies. Prices between countries and over a drug’s life cycle need to be closely managed in order to avoid a negative impact on global profitability. Estimating the actual impact of price cascading on profitability is not always an easy task. A key aspect of determining the optimal global pricing strategy is the evaluation of the impact of international price referencing and parallel trade. Global price differences continue to be sensitive in pharmaceutical and political circles.
