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What is a patient willing to pay for your brand?

Written by Al Kenney on 15 August 2017. Posted in Co-Pay Program Optimization

PatientPay

The summer is here and brand planning for 2018 will be in full swing very soon. A key issue brands will be discussing is what the patient is actually willing to pay for their medications once they weed through their insurance coverage, high deductible health plans, and copay program discounts.  In the end, each patient winds up with a final price due at the pharmacy counter and they are faced with that all-important decision of whether or not to actually fill that script.

I thought this might be an opportune time to discuss briefly the three most important considerations during the all-important purchase decision process:

  1. Severity of the condition: The more severe the condition is, the more willing the patient is to pay to overcome their issue… whatever it may be.
  2. Uniqueness of the brand: Brands with unique indications and claims have added value to patients and thus patients are willing to pay more for it  
  3. Substitutability of the brand: If there are no other suitable options available for the patient to ease their condition then they will pay more…But provide them with even a few alternatives and their perceived value of the brand will decrease. Some categories with possible OTC alternatives available could see an even further reduction in their value in the patient’s mind.

The Brand team needs to be realistic in their assessment of where their brand stands in each of these areas. Making the mistake of overestimating a brand’s value rating in any of these key areas could cost you in the form non-starts and high abandonment rates.