SOLUTIONS

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.

PLANNING
STRATEGY
RESULTS

Modeling Requirements are the same for any Global Pricing Strategy:

  • Maximize price differentials as much as possible 

  • Harmonize prices as much as necessary

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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:

  1. 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.

  2. 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.

  3. 35.9% revenue gains if parallel traders have full access to all drug supplies. This assumes perfect competition and is not a likely scenario

     

     

     

     

     

     

     

     

     

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2730 Tucker St.

Burlington, NC 27215

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