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Key pricing and profitability trends for Life Sciences Companies
At the European Pricing & Profit Optimisation Forum 2013, in Montreux, Switzerland, Deloitte conducted a survey on pricing and profitability management practices amongst 30 senior pricing executives of leading global life sciences companies.
The study identified six key trends in pricing and profitability :
- Value-based pricing is becoming the predominant price-strategy following buyers’ pressure for value-based pricing agreements
- 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
- Life sciences companies are increasingly challenged by tendering groups and demand for price transparency
- Life sciences companies have translated their strategic priority to improve and implement pricing capabilities into on-going pricing initiatives
- The key winning factor in the market remains product performance, while price is indicated as the key reason for losing a customer
- Pricing roles and responsibilities are becoming more clearly defined, particularly on top management level, where Chief Marketing Officers increasingly take on the pricing responsibility