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Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers

How Pharmaceutical Companies Price Drugs at Launch

In this episode of Pricing Power, Lucas and Luna examine how pharmaceutical companies set launch prices for new drugs, using the recent pricing of a gene therapy for sickle cell disease as a case study. They break down the role of R&D costs, clinical trial design, patient population size, and the interplay with insurers and pharmacy benefit managers. The hosts discuss the concept of value-based pricing, where prices are tied to outcomes like reduced hospitalizations, and contrast it with the traditional cost-plus approach. They also explore the impact of government negotiation provisions in…

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