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Key pricing and profitability trends for Life Sciences Companies

Survey results

Deloitte conducted a survey on pricing and profitability management practices amongst 30 senior pricing executives of leading global life sciences companies.

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The study identified six key trends in pricing and profitability :

  1. Value-based pricing is becoming the predominant price-strategy following buyers’ pressure for value-based pricing agreements
  2. Respondents see potential for improvement in their pricing strategies, especially in understanding their own value proposition in relation to the market reaction and price sensitivities
  3. Life sciences companies are increasingly challenged by tendering groups and demand for price transparency
  4. Life sciences companies have translated their strategic priority to improve and implement pricing capabilities into on-going pricing initiatives
  5. The key winning factor in the market remains product performance, while price is indicated as the key reason for losing a customer
  6. Pricing roles and responsibilities are becoming more clearly defined, particularly on top management level, where Chief Marketing Officers increasingly take on the pricing responsibility
     
Key pricing and profitability trends for Life Sciences Companies
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