Price is probably the most decisive factor for the Pharma companies when selecting a CDMO, assuming that quality is up to desirable standards. Price directly affects the CDMO new business success rate especially for traditional technologies. On the other hand the “right” Price is of utmost importance for the CDMO future sustainability

Efficient Pricing needs to take into consideration:

  • Product related parameters: specific product technology and therapeutic area
  • Cost related parameters: manufacturing cost and available capacity
  • Customer related parameters: what the customer is willing to pay for the specific product
  • Competition parameters: what competition in the broader region is offering

We support you by providing:

Standardized process for defining the appropriate price range to be offered, combining three independent approaches and also taking into consideration business strategy, internal cost structure, production technology and specific product peculiarities

  • Cost Plus approach: Provide a price by defining the appropriate margin range, on top of internal cost
  • Market minus approach: Provide a price range by understanding the market price elasticity of the specific product and customer
  • Benchmarking: Define a price range according to internal and external benchmarks of similar products