Pricing a New Drug

Pricing a New Drug

  • Case
  • Teaching Notes
Abstract

Exodus Pharmaceuticals, Inc. is a small pharmaceutical company with three pharmaceutical products on the market. A promising drug in late-stage clinical trials presents an opportunity for a comprehensive market access strategy including pricing and reimbursement. Rising launch prices of drugs are often cited as the primary reason for increasing U.S. prescription drug spending, making it essential to develop an evidence-based price. In this case study, students will explore how tethering the price of the drug to its value can result in optimal pricing. In doing so, students will be introduced to the concept of value-based pricing strategy and will determine the value and corresponding price of the drug as it relates to the key stakeholders, namely, patients, physicians, providers, and payers.

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