08-22-2014 05:36 AM
I have a project in which i need to pricing the new product/drug which is under development now. How to start this project?
I think I need to have a large data repositary with key parameters.
Which analysis will help me to fix the pricing for the new drug in SAS?
Is there any other tools providing model for pricing a new drug?
Thanks in advance.
09-18-2014 12:39 PM
This is a tough question to answer with the limited information I have. I'll do my best to give you some ideas.
First, if you have sales history of lots of drugs you might want to consider some version of an implementation of forecasting by analogy. This link might help you get started. http://www.forecasters.org/submissions08/TroveroMicheleLeonardMichaelISF2008.pdf
The algorithmic methods rely heavily on a procedure called SIMILARITY http://support.sas.com/documentation/cdl/en/etsug/67525/HTML/default/viewer.htm#etsug_similarity_exa...
As far as what to do with your forecast, that is another question altogether. I assume you want to do some sort of optimization. And there are multitudes of different objective functions with constraints. This would really require a closer look at the problem. Please email me directly should you like some assistance with this.
09-18-2014 01:06 PM
You may not want to model it per se, but instead find out what the cost of the current problem are now and then that's considered the price of the solution.
So if your new drug treats Problem A, and the estimated costs of currently treating Problem A over time is X then the price of the drug could be at least X. There may be arguments that if the drug is beneficial and stops the spread then the price can be X+premium.
If the drug is in an established market with competitors then the drug should be in the same price range to be competitive.