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Is there any modeling methods available in SAS to pricing a new drug?

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New Contributor
Posts: 2

Is there any modeling methods available in SAS to pricing a new drug?

Hi everyone,

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.

But then?

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.

SAS Employee
Posts: 89

Re: Is there any modeling methods available in SAS to pricing a new drug?

Posted in reply to Vimal_SAS

Hello,

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.

Kenneth.sanford@sas.com

Super User
Posts: 19,780

Re: Is there any modeling methods available in SAS to pricing a new drug?

Posted in reply to Vimal_SAS

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.

Pricing strategies - Wikipedia, the free encyclopedia

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