growth business

Copay Program Optimization

A Case Study


A major pharma company needed to trim $30MM in copay program spending company-wide and still maintain their growth.  The company came to Alpha 1C to optimize their copay programs across their product portfolio. Objectives were as follows:

  • Maintain sales growth while reducing cost by $30MM (-16.6%)
  • Stay within the assigned corporate budget overall, but set budgets and offers for each brand to optimize the copay spend
  • Wanted to understand each brand’s price “tipping point”. Specifically were they buying down the price more than they needed to acquire a patient?
  • Complete the entire project in a 6-week time period
  • Start fresh, all options would be considered

Our Process:

  • Detailed questionnaires were sent to each brand team and interviews were set with senior management
  • We built customized optimization models for each brand using both client data and data from our industry database
  • Copay budgets and program parameters were determined for each individual brand through an iterative process (to ensure the objectives set by management for the total portfolio would be achieved)


  • Over 1,700 scenario forecasts were produced for the brands
  • A projected P&L containing key line items was provided for every scenario run
  • Adjustments to patient offers were recommended for most brands
  • Two brands had offers in market that did not need to change      
  • One brand’s copay program was discontinued
  • The company achieved its $30MM cost reduction goal, significantly increasing profitability, while maintaining its sales growth trajectory
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