SPG Healthcare Case Study
Large Pharmaceutical Company
Designing a Launch Pricing Strategy for a New Pharmaceutical Product in Latin America
Overview
A leading global pharmaceutical company sought to define an optimal launch pricing strategy for a new oral contraceptive across key Latin and South American markets — including Brazil, Mexico, Chile, and Venezuela. The product offered additional therapeutic benefits beyond contraception, requiring a nuanced approach to pricing and market positioning.
The goal: establish premium yet accessible price points aligned with both commercial objectives and market realities.
Challenge
The company faced complex, market-specific dynamics:
- Wide variation in price sensitivity among patients and prescribers
- Differences in reimbursement structures and healthcare access
- The need to balance value-based pricing for dual indications (contraceptive + therapeutic)
- Anticipation of generic entry and potential price erosion post-launch
Approach
Our team applied a multi-level Market Access and Pricing Framework to determine the optimal launch pricing structure across all four markets.
- Conducted in-depth interviews with physicians to understand prescribing behavior, brand switching, and perceptions of value
- Led in person focus groups across four countries with patients to assess key decision drivers and willingness to pay
- Evaluated market segmentation by patient profile, prescriber type, and region
Solution
We integrated advanced analytical and qualitative techniques to model elasticity and optimize pricing decisions.
- Utilized Discrete Choice Modeling, Van Westendorp, and Price Laddering to quantify patient price sensitivity to the new proposed medication
- Developed decision-tree simulations to forecast pricing outcomes under multiple competitive and regulatory scenarios
- Linked findings to the client’s broader strategic success factors, ensuring pricing alignment with brand and access goals
Results
- Delivered country-specific pricing corridors and premium pricing recommendations
- Identified optimal price points for different product indications and market segments
- Built scenario-based decision trees enabling real-time adjustments for competitor moves or market changes
- Created a launch pricing playbook guiding roll-out strategy across Latin and South America
Impact
The project provided the client with a data-driven launch pricing strategy that balanced commercial ambitions with patient access and market sustainability.
By integrating physician insights, patient behavior, and economic modeling, the company entered multiple Latin and South American markets with a clear and defensible pricing framework — positioning the product as a premium yet competitive therapy within the region.
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