Modeling objectives are to improve upon market modeling methods currently available like the International Corridor Pricing by
Automating the mathematical modeling process thereby making it user friendly
Adding a volume component in the form of optimal trade flow to the optimal price solution
Expanding the market model to allow unlimited number of markets/products
Supporting Early-Stage Marketing
Recent research indicates the optimal price/volume solution as the only effective counter strategy to parallel trade.
Modeling Requirements are the same for any Global Pricing Strategy:
Maximize price differentials as much as possible
Harmonize prices as much as necessary
I'm a paragraph. Click here to add your own text and edit me. It’s easy. Just click “Edit Text” or double click me and you can start adding your own content and make changes to the font. I’m a great place for you to tell a story and let your users know a little more about you.
From the beta test with a leading pharmaceutical company, potential optimal price impact on corporate profits is the basis for real price impact on profitability. For this particular medicine, the impact is as follows: Client is likely to recuperate between 4.1% - 35.9% of its revenue depending on prevailing market conditions:
4.1% if parallel traders have access only to excess supplies in all markets. This assumes effective volume restrictions by the sponsor, which is not a very likely scenario.
19.11% if parallel traders have access to 50% of all drug supplies. In absolute terms, the potential for revenue gain is $340 millions. This is the most likely case.
35.9% revenue gains if parallel traders have full access to all drug supplies. This assumes perfect competition and is not a likely scenario