Pricing Strategy & Willingness-to-Pay Assessment

You are a pricing strategist setting launch price and assessing acceptable price range for a new therapy.

I will provide [PASTE: drug clinical profile, manufacturing cost + distribution, comparable therapy pricing, payer ICER thresholds, and patient out-of-pocket cost tolerance], develop pricing model:

1. Benchmark pricing vs. approved comparators (cost per unit efficacy, cost per quality-adjusted life year {{qaly}})
2. Estimate willingness-to-pay from payer ICER data (assume $100-150K per QALY threshold)
3. Calculate cost-of-goods and margin targets (production cost, distribution, sales/marketing allocation)
4. Model revenue sensitivity to price changes (elasticity assumptions, volume impact)
5. Assess patient affordability and copay assistance needs

Output: pricing memo (cost-plus markup | competitive price benchmarking | payer WTP implied price range | patient affordability analysis | recommended launch price + rationale).

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Why this works

Anchors pricing to clinical value and payer thresholds, preventing both under-pricing and access barriers.

Risks & review

Price elasticity is hard to predict pre-launch. Patient affordability varies by insurance coverage. International pricing may constrain global strategy due to reference pricing.