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Pre LOE – Copay Program Evaluation and Optimization

A Case Study

Situation:

  • The brand was within eighteen months of coming off patent. The brand team wanted to keep a copay offer in market to help maintain the persistency of their current patients as long as they could, but remain profitable.
  • A strong business case was needed to get senior management approval for a patient copay card program up to, and through their quickly approaching LOE date
  • The challenge was to find an offer structure that would maintain sales levels until LOE and then minimize declines after LOE

Our Process:

  • We engaged the brand in our copay program optimization modeling process to forecast the impact of continuing vs. discontinuing their copay program
  • The new offer was specifically designed to:
    • Meet the key objectives of the brand
    • Stay within or below the budgeted amount given
    • Get the best $$$ return for the budget that was approved
    • Maintain the adherence rates for patients who were utilizing these copay cards
    • Begin to test offer for the post LOE timeframe that met their goals

Results:

  • The quick to market process provided the brand several offer scenarios which showed that the estimated profit on their incremental volume would more than cover the cost of the program so it should continue
  • Analysis showed by changing the offer (both face value and the cap) the brand could maintain patient trial and adherence, while reducing their costs, to increase their net margin for the final year with exclusivity
  • Our model provided the business case the brand needed to receive approval from senior management to continue their program for another 18 months
  • The new program kept sales levels high and outperformed the previous offer by 41% on a profit basis! 
  • The program ran for the remaining 18 months and the brand was able to squeeze the most they could out of their brand before the patent expired (LOE)
  • Scenarios were run within 6 months of the LOE date to determine the post LOE offer
  • Our model was also used to successfully plan their new offer which would be in place one month prior to their LOE date. It was designed to maximize net sales and minimize brand abandonment
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